MannKind Corporation
(
MNKD
) recently signed a license agreement with Colby Pharmaceutical
Company granting the latter exclusive rights to its early stage
cancer programs.
MannKind will be receiving upfront and milestone payments
relating to the development, approval and commercialization of
the products along with upfront and potential milestone payments
of approximately $140 million in total. The company is also
eligible to receive tiered royalties on the sale of these
products.
As per the agreement, Colby will have exclusive worldwide
rights for the development and commercialization of
disease-specific antigen compounds and intra-lymph node delivery
technologies from the MKC1106 active immunotherapy programs.
MannKind is currently developing these programs to treat patients
suffering from melanoma, prostate, hematological disorders and
other cancers.
We remind investors that MannKind has already completed a
phase I program on MKC1106-MT for human melanoma. The study
successfully achieved its primary objectives.
Our Take
We are positive on the deal. The partnership program will
safeguard MannKind's financial interests while furthering
pipeline development.
Meanwhile, we expect investor focus to remain on MannKind's
lead pipeline candidate Afrezza. Afrezza is an inhaled insulin
being developed for the treatment of type I (MKC-171 study) or
type II (MKC-175 study) diabetes. In October this year, the
company finished enrolling patients for both studies. MannKind
believes that it can complete both trials in the second quarter
of 2013 and submit a new drug application in the third quarter of
2013.
We also note that the diabetes market already has big players
like
Eli Lilly
(
LLY
) ,
Novo Nordisk
(
NVO
) and
Sanof
i (
SNY
).
Currently, we have a Neutral recommendation on MannKind, which
carries a Zacks #3 Rank (short-term Hold rating).
LILLY ELI & CO (LLY): Free Stock Analysis
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MANNKIND CORP (MNKD): Free Stock Analysis
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NOVO-NORDISK AS (NVO): Free Stock Analysis
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SANOFI-AVENTIS (SNY): Free Stock Analysis
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