MannKind Corp. announced Thursday that it has entered into a licensing agreement with newly formed pharmaceutical developer Receptor Life Sciences Inc. in Seattle to develop multiple inhaled therapeutic products for an array of conditions, including inflammatory disorders and neurological diseases.

According to the agreement, the Valencia biotech will be responsible for performing initial studies and will work with Receptor to develop compounds in inhalable form. Manufacturing technology from MannKind will be transferred to Receptor, which will be in charge of producing and marketing the products.

Both companies will work together on clinical development, but Receptor will be responsible for associated costs. In exchange, MannKind is eligible to receive up to $102 million if certain milestones are met in addition to royalties from product sales.

Prior to this arrangement, MannKind produced its sole commercial product, an inhalable insulin called Afrezza. Sales from Afrezza have proven disappointing, which led to Sanofi-Aventis U.S. terminating its licensing agreement with MannKind earlier this year.

“We are pleased that Receptor Life Sciences has selected our formulation and delivery technology to advance its portfolio of innovative inhaled products,” MannKind Chief Executive Matthew Pfeffer said in a statement. “This collaboration demonstrates the fundamental value of our platform technology while the risk-sharing structure of the transaction allows us to diversify our product opportunities without losing focus on our lead program.”

MannKind shares closed down 5 cents or 6.4 percent to 74 cents on the Nasdaq.