Benzinga | Sep 29, 2021 04:25PM EDT

Mannkind Corporation Announces Sale-Leaseback Transaction Generating $102.25M In Non-Dilutive Gross Proceeds

MannKind Corporation (NASDAQ:MNKD), a company focused on the development and commercialization of inhaled therapeutic products for patients with endocrine and orphan lung diseases, announced today that it has entered into a sale-leaseback transaction with an affiliate of Creative Manufacturing Properties, which will generate $102.25 million in gross proceeds upon closing.



"We are pleased to enter into this sale-leaseback transaction and unlock value tied up in our manufacturing facility that translates directly into non-dilutive capital to support our company's growth and development strategy," said Michael Castagna, PharmD, CEO for MannKind Corporation. "The company is well-capitalized to invest further in our growing product pipeline as well as targeted scale-up of Afrezza commercial activities and clinical trials."

The real property sale includes 263,900 square feet of manufacturing space at 1 Casper Street in Danbury, but does not include MannKind's research and development facility. Upon closing of the agreement, MannKind will enter into a 20-year lease agreement with the purchaser, with multiple renewal options available.

MannKind will continue to operate the Connecticut facility pursuant to the lease. This location is where MannKind produces Afrezza(r) (insulin human) Inhalation Powder, the company's first FDA-approved product and the only inhaled ultra rapid-acting mealtime insulin in the United States. It is also where MannKind is preparing to manufacture Tyvaso DPI(tm) (inhaled treprostinil) under its collaboration with United Therapeutics. Tyvaso DPI is currently being reviewed by the FDA for its potential to treat pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).