MannKind to acquire scPharmaceuticals for $6.35 per share, diversifying revenue growth.

• MannKind acquires scPharmaceuticals for $5.35/share upfront, plus up to $1.00/share in milestones. • FUROSCIX treatment for edema due to chronic heart failure and kidney disease. • Strengthens organization and integrates commercial and medical capabilities. • FUROSCIX ReadyFlow Autoinjector on track for Q3 2025 sNDA submission. • Total consideration of up to $6.35/share represents up to a 31% premium.

MannKind Corporation (Nasdaq: MNKD) has announced the acquisition of scPharmaceuticals Inc. (Nasdaq: SCPH) in a deal valued up to $360 million. The transaction includes an upfront payment of $5.35 per share, plus contingent value rights (CVRs) worth up to $1.00 per share, representing a 36% premium to SCPH's 90-day volume-weighted average price (VWAP). The acquisition brings FUROSCIX®, an FDA-approved treatment for fluid overload in chronic heart failure and chronic kidney disease patients, with a $10+ billion U.S. market opportunity [1].

FUROSCIX achieved strong H1 2025 performance with net sales of $27.8 million, up 96% year-over-year. The combined company projects an annualized revenue run rate of over $370 million based on Q2 2025 results. The deal is expected to close in Q4 2025, strengthening MannKind's position in cardiometabolic and lung diseases while accelerating double-digit revenue growth through multiple commercial assets including Afrezza®, FUROSCIX, and V-Go® [1].

The acquisition diversifies MannKind's revenue streams and strengthens its cardiometabolic portfolio with high-growth FUROSCIX. This strategic acquisition represents a significant expansion for MannKind into the cardiorenal space. The upfront payment represents a 36% premium to scPharmaceuticals' 90-day VWAP. The financial rationale is compelling. scPharmaceuticals' FUROSCIX generated $27.8 million in revenue for the first half of 2025, growing 96% year-over-year [1].

The transaction is fully funded through an expanded strategic financing agreement with Blackstone providing $175 million in additional capital. As part of the deal, MannKind will repay scPharmaceuticals' debt to Perceptive, estimated at $81 million. The pending FUROSCIX ReadyFlow Autoinjector could significantly expand adoption by reducing treatment time from five hours to under ten seconds, with an sNDA submission expected in Q3 2025 [1].

MannKind appears positioned to leverage commercial synergies by maintaining scPharmaceuticals' cardiovascular sales team while deploying its existing endocrinology sales force to accelerate FUROSCIX's penetration in the nephrology segment following its chronic kidney disease approval. The deal structure, including contingent value rights tied to regulatory and sales milestones, aligns incentives for successful integration and commercialization [1].

The acquisition of scPharmaceuticals marks MannKind’s strategic expansion into cardiorenal medicine, establishing the company’s cardiometabolic business alongside its orphan lung division. scPharmaceuticals currently markets FUROSCIX, an FDA-approved on-body infuser delivering furosemide, the gold standard to treat fluid overload in adult patients with chronic heart failure (CHF) and chronic kidney disease (CKD). The estimated total addressable market opportunity equates to more than $10 billion in the U.S. alone [1].

For the six months ended June 30, 2025, net sales totaled $27.8 million, up 96% year-over-year. The FUROSCIX ReadyFlow Autoinjector is on track for a Q3 2025 supplemental New Drug Application (sNDA) submission, potentially enabling patients to reduce treatment time from five hours to less than 10 seconds [1].

Michael Castagna, PharmD, Chief Executive Officer of MannKind Corporation, stated, “This acquisition expands our patient-centered brands and highlights MannKind’s dedication to delivering innovative therapies for cardiometabolic and orphan lung diseases. With multiple anticipated product launches and indication expansions, we expect to continue to diversify our revenue streams and accelerate our double-digit growth goals over the next decade” [1].

John Tucker, Chief Executive Officer of scPharmaceuticals, commented, “This transaction with MannKind represents an exciting next chapter for scPharmaceuticals and the FUROSCIX brand. By combining our innovative products with MannKind’s proven commercial capabilities and shared commitment to advancing patient care, we believe MannKind can accelerate access to important therapies and create meaningful value for patients, providers, and stockholders” [1].

Strategic and Financial Benefits

Under the terms of the definitive merger agreement, MannKind will promptly commence a tender offer to acquire all of the outstanding shares of scPharmaceuticals common stock at a price of $5.35 per share in cash at closing plus one non-tradable CVR per share to receive certain milestone payments of up to an aggregate of $1.00 per CVR in cash, for total consideration of up to $6.35 per share in cash, representing a total equity value of approximately $303 million at closing and representing a total deal value of up to approximately $360 million [1].

The non-tradable CVR is payable upon achieving certain regulatory and net sales milestones. The transaction is expected to close in the fourth quarter of 2025, subject to receipt of applicable regulatory approvals and the satisfaction of other customary conditions. As a condition to funding the Blackstone financing, upon the closing of the transaction, MannKind will be obligated to repay and extinguish all outstanding indebtedness of scPharmaceuticals under its credit facility with Perceptive and buy-out Perceptive’s rights to receive revenue payments pursuant to its revenue purchase and sale agreement, which is estimated to equal an aggregate repayment and buyout amount of $81 million [1].

Advisors Jefferies LLC acted as the exclusive financial advisor to MannKind, with Cooley LLP serving as legal counsel. Leerink Partners acted as exclusive financial advisor to scPharmaceuticals, with Latham & Watkins LLP providing legal counsel [1].

References:
[1] https://www.stocktitan.net/news/SCPH/mann-kind-to-acquire-sc-pharmaceuticals-accelerating-revenue-growth-rsarr5xjckrf.html