MannKind Gains $16.7 Million From Building SaleTuesday, February 21, 2017
MannKind Corp. on Tuesday announced it has received the remaining $16.7 million after closing the sale of some of its former real estate at 28901-28903 N. Avenue Paine in Valencia.
The company sold five parcels, which included 11.4 acres of land and a 146,000-square-foot building, to Rexford Industrial Realty of Los Angeles for a total of $17.3 million, according to a Securities and Exchange Commission filing.
Rose Alinaya, MannKind’s senior vice president of finance, told the Business Journal in an email that the property was unoccupied for over a year but was used as collateral for its loan payable to French pharma Sanofi.
However, Sanofi terminated its licensing agreement with the Valencia biotech last year, and as a result, MannKind regained the worldwide manufacturing and marketing rights to Afrezza Inhalation Powder, the company’s sole commercial product.
Upon termination of the deal, the loan was forgiven by Sanofi and no longer needed the real estate as collateral.
“Given the interest in the property and our ability to now sell our former campus, the sale allowed us to decrease our operating expense outflow and extend our financial runway to further progress the commercialization of Afrezza and other product candidates,” Alinaya wrote in an email to the Business Journal.
MannKind (MNKD) shares closed down 2 cents, or 3.1 percent, to 51 cents on the Nasdaq.