MannKind Corp. announced on Wednesday that it has closed its worldwide marketing deal with French drug maker Sanofi for its Afreeza inhalable insulin.
The Valencia biotech said as part of the deal it will receive a $150 million upfront payment from the Paris-based company in the next 10 days.
Under the licensing agreement, MannKind will manufacture Afrezza at its plant in Danbury, Conn., while Sanofi will take responsibility for marketing and regulatory compliance. MannKind will receive 35 percent of all profits, while Sanofi will retain 65 percent.
The closing follows completion of paperwork for a $175 million credit line provided to MannKind by a Sanofi affiliate to pay for manufacturing expenses.
Afrezza was approved for sale by the Food and Drug Administration in July.
Shares of MannKind closed up 6 cents, or 1 percent, to $6.08 on the Nasdaq.