MannKind, United Therapeutics Expand Agreement To Develop A Second Investigational Molecule Together

MannKind Corporation (MNKD) on Wednesday said that it will formulate a dry powder inhalation therapy, and United Therapeutics (UTHR) will conduct preclinical and clinical development under an expanded agreement.

The two companies entered into a licence and collaboration agreement in 2018. The agreement led to the US Food and Drug Administration’s approval of Tyvaso DPI in May 2022 and included an option for United Therapeutics to expand the license to include additional active ingredients. Tyvaso DPI was the first FDA-approved dry powder inhalation treatment for pulmonary hypertension.

On Stocktwits, retail sentiment around MNKD jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels. Shares of MNKD traded 5% higher in the pre-market session at the time of writing.

Meanwhile, retail sentiment around UTHR stayed within ‘neutral’ territory, coupled with ‘low’ levels of retail chatter.

MannKind CEO Michael Castagna said that this next step in the collaboration between the two companies strengthens the existing partnership and the versatility of its dry powder formulations.

The company said that it will receive an upfront payment of $5 million under the expanded agreement. It is also eligible to receive up to $35 million milestone payments and 10% royalties on net sales of resulting products.

Formulation and development activities for the new investigational molecule will begin immediately, the company said. It will be formulated using MannKind’s proprietary Technosphere inhalation technology.

While MNKD stock is down by 37% this year, UTHR stock is down by 12%. 

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