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Thursday, Nov 21, 2024

MannKind Sells, Leases Back Facility

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.

Antonio Pequeño IV
Antonio Pequeño IV
Antonio “Tony” Pequeño IV is a reporter covering health care, finance and law for the San Fernando Valley Business Journal. He specializes in reporting on some of the biggest names in the Valley’s biotechnology sector. In addition to his work with the Business Journal, Tony has reported with BuzzFeed News on the unsupervised use of Clearview AI, a controversial facial recognition technology. Tony, who also conducts freelance reporting, graduated from the USC’s Master of Science in Journalism program in 2021. He is in his fifth year as a journalist as of 2021.

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