Biopharmaceutical company MannKind Corp. on Wednesday announced it has made a sale-leaseback transaction of a 263,900 square foot manufacturing facility in Connecticut.
The Westlake Village company entered the transaction, which will generate $102.25 million in gross proceeds, with an affiliate of Creative Manufacturing Properties. It did not say what the net proceeds were.
MannKind will enter into a 20-year lease with the purchaser upon closure of the agreement and will continue to operate the Connecticut facility in accordance with the lease. The transaction does not include MannKind’s research and development facility near there.
The Connecticut facility is where the company produces Afrezza, its FDA-approved inhalable insulin product.
“We are pleased to enter into this sale-leaseback transaction and unlock value tied up in our manufacturing facility that translates directly into non-dilutive capital to support our company’s growth and development strategy,” Michael Castagna, MannKind’s chief executive, said in a statement.
Shares of MannKind (MNKD) closed up 37 cents, or 7.8 percent, to $5.10 on the Nasdaq Wednesday, a day when that market closed up nearly half a percent.