MannKind shoulders $160M in debt for PhIII inhaled-insulin gamble

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Northerner

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More than two years after the FDA forced MannKind ($MNKD) to go back to the drawing board and plan two more late-stage studies of its inhaled insulin Afrezza, the biotech is drawing close to raising the curtain on the long-awaited results. And in anticipation of finally achieving success at the FDA, it's adding $160 million in new debt to prepare for a commercial launch.

Deerfield Management has stepped into the breach, committing to handing over $160 million in four tranches as MannKind hands over the Phase III data and renews its quest for an approval. In exchange for a $19.4 million upfront, MannKind also sold Deerfield the rights to the first $90 million in milestones based on initial sales--though the biotech can terminate that part of the deal if it can pay back the first $40 million tranche ahead of schedule.

http://www.fiercebiotech.com/story/...-debt-phiii-inhaled-insulin-gamble/2013-07-02
 
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