MannKind Buys QrumPharma for $3.5 Million

MannKind Corp. on Monday announced it has acquired Pennsylvania-based QrumPharma Inc. for $3.5 million in cash and more than 3 million shares of its common stock.Qrum is a private pharmaceutical company focused on inhalation treatments for pulmonary infections, notably Nontuberculous Mycobacterial lung disease, MannKind said in a statement.According to acquisition terms, Dr. Thomas Hofman, Qrum’s chief executive, will be brought on to MannKind as its chief scientific officer, the Westlake Village company said. Hofman has more than 20 years of experience in inhaled drug development for cystic fibrosis.“This acquisition brings us a lead program that is expected to enter Phase 1 in late 2021,” Michael Castagna, chief executive of MannKind, said in a statement. “Our combined capabilities have the potential to create a dry powder formulation that will enable patients suffering from NTM to have a much more positive treatment experience. We are also very excited to add the QrumPharma development team to our roster of talent, with their deep expertise of inhaled drug delivery.”Cash and share payment for the acquisition is subject to “cash on hand, unpaid indebtedness, unpaid transaction expenses, net working capital and other liabilities of QrumPharma,” MannKind said in a statement.Shares of MannKind (MNKD) closed Monday down 21 cents, or more than 7 percent, to $2.74 on the Nasdaq on a day when that market rose nearly 3.3 percent.