MannKind stock surges on United Therapeutics exercise of inhalation therapy option.

MannKind Corporation's stock rose by around 10% after United Therapeutics exercised an option to develop a second dry powder inhalation therapy under their 2018 licensing agreement. The agreement has already led to the development of one inhalation therapy, and the second option is expected to further boost MannKind's portfolio. The move is a positive indicator for MannKind's growth prospects and its partnership with United Therapeutics.

MannKind Corporation (NASDAQ: MNKD) experienced a notable increase in its stock price, rising by approximately 10% in the morning hours of Wednesday, following the announcement that United Therapeutics (NASDAQ: UTHR) exercised an option to develop a second dry powder inhalation therapy under their 2018 licensing agreement [1]. This development comes on the heels of the FDA approval of the first such product, Tyvaso DPI, for pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease.

Under the revised agreement, United Therapeutics will conduct preclinical and clinical studies for an experimental molecule designed by MannKind using its Technosphere platform. In exchange, MannKind will receive an upfront payment of $5 million, along with potential milestone payments worth up to $35 million and royalties on net sales resulting from the product [2]. This expansion of the collaboration is expected to generate significant revenue for MannKind and further bolster its portfolio.

The original license and collaboration agreement between the two companies were established in 2018 and included an option for United Therapeutics to expand the license to additional active ingredients, which it has now exercised [1]. The collaboration has already contributed to United Therapeutics' robust 17.6% revenue growth over the last twelve months [2]. The new agreement signifies a deeper commitment to innovation and patient-centric therapies in the field of pulmonary hypertension.

Michael Castagna, Chief Executive Officer of MannKind Corporation, expressed pride in the expanded partnership, stating, "Building on the success of Tyvaso DPI, we are proud to deepen our collaboration with United Therapeutics to bring innovative patient-centric inhaled therapies to patients living with pulmonary hypertension" [2]. This move is a positive indicator for MannKind's growth prospects and its strategic partnership with United Therapeutics.

References:
[1] https://seekingalpha.com/news/4489631-mannkind-rises-united-therapeutics-expands-deal
[2] https://www.investing.com/news/company-news/united-therapeutics-expands-partnership-with-mannkind-for-new-therapy-93CH-4212652