MannKind Corp. announced Tuesday that Sanofi-Aventis U.S. has terminated its license and collaboration agreement to manufacture and market MannKind’s sole commercial product, Afrezza Inhalation Powder, a fast-acting inhalable insulin.
The transition is expected to take place over the next 90 to 180 days and will occur no later than six months after the termination date of the agreement, which will be July 4, 2016.
In lieu of this news, the Valencia biotech is reassessing its strategic plan for Afrezza and will be hosting a conference call at 1:30 p.m. PST.
Sanofi-Aventis’ departure from the deal was expected as its U.S. sales of the product have proved disappointing. The pharmaceutical company, headquartered in Bridgewater, N.J., reported a little over $2 million in Afrezza sales for the third quarter of last year.
Additionally, this past November, Hakan Edstrom stepped down as chief executive of MannKind, and founder Alfred Mann was elected as interim chief executive until a permanent replacement could be found.
MannKind shares closed down 70 cents or more than 48 percent to 75 cents on the Nasdaq.