DANBURY, Conn. - MannKind (NASDAQ:MNKD) Corporation (NASDAQ: MNKD), a biopharmaceutical company specializing in inhaled therapeutic products for endocrine and orphan lung diseases, announced today an agreement with Pulmatrix (NASDAQ:PULM) to in-license the iSPERSE™ technology for certain indications. In return, MannKind will out-license its Cricket® inhaler to Pulmatrix for the delivery of migraine treatments. This deal also includes the transfer of Pulmatrix's Bedford, Mass. R&D facility to MannKind.
The agreement, expected to close in July 2024, will see MannKind acquire exclusive use of iSPERSE for clofazimine, NTM, and insulin treatments, and non-exclusive use for endocrine and interstitial lung diseases, including idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PFF). Conversely, Pulmatrix gains a royalty-free, exclusive license to MannKind's Cricket inhaler for inhaled delivery of dihydroergotamine (DHE) and non-exclusive use for neurological diseases.
Michael Castagna, CEO of MannKind, expressed enthusiasm about the opportunity to grow the company's presence in the Boston area and advance their pipeline, particularly in orphan lung programs. Dr. Burkhard Blank, MannKind's EVP of R&D and Chief Medical Officer, noted that while their Technosphere® technology is effective for many drugs, iSPERSE may be better suited for drug candidates requiring higher payloads.
The strategic move aims to consolidate MannKind's Boston operations by transitioning its Marlborough staff to the Bedford facility. Plans also include hiring some of Pulmatrix's R&D staff to maintain continuity in iSPERSE platform knowledge.
InvestingPro Insights
MannKind Corporation (NASDAQ: MNKD) has been making notable strides in the biopharmaceutical sector, as evidenced by their recent licensing agreement with Pulmatrix. This move not only expands their technological capabilities but also consolidates their R&D efforts in the Boston area. Here are some key insights and metrics from InvestingPro that shed light on MannKind's financial health and market performance:
- The company's market capitalization stands at a robust $1.26 billion, reflecting investor confidence in its growth prospects and strategic initiatives.
- MannKind's revenue has experienced significant growth over the last twelve months as of Q1 2024, with an impressive increase of 74.92%. This growth trajectory is indicative of the company's successful expansion and the market's positive reception of its products.
- With a gross profit margin of 70.99%, MannKind demonstrates a strong ability to manage its production costs and maintain profitability, which is essential for sustaining its R&D endeavors and future licensing agreements.
Two InvestingPro Tips that may be particularly relevant for investors considering MannKind's stock are:
- Analysts predict that the company will be profitable this year, which is a promising sign for potential investors looking for companies with a clear path to profitability.
- MannKind is trading at a high P/E ratio relative to near-term earnings growth, suggesting that the market may be expecting higher earnings in the future. This optimism could be linked to the company's recent strategic moves and the potential success of its inhalation technologies.
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With 11 more tips listed on InvestingPro, investors have a wealth of information at their fingertips to make well-informed decisions. Whether you're interested in the company's debt management, earnings multiples, or profitability forecasts, InvestingPro offers comprehensive insights to help you evaluate MannKind's investment potential.
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