MannKind Corp. has entered an agreement to purchase Pfizer's insulin facility in Frankfurt, Germany and assets related to the production of bulk insulin for $33 million, subject to certain adjustments. This includes the relevant property rights, production equipment, a quantity of bulk insulin and a license to manufacture bulk insulin for use in pulmonary delivery. At MannKind's option, as much as $30 million worth of the company's common stock may be issued to Pfizer at closing and applied to the purchase price. The transfer of certain real property rights for the transaction will require third party consent.
MannKind intends to retain more than half of the current workforce and plans to operate the facility at a production level equal to current needs for recombinant human insulin. If some or all of the third-party consents are not obtained, only the bulk insulin, the license to manufacture bulk insulin for use in pulmonary delivery and, potentially, certain removable equipment will be transferred to MannKind at closing.
"The insulin plant in Frankfurt is a state-of-the-art insulin production facility that would make an excellent counterpart to our formulation, fill and finish facility for AFRESA in Danbury, Connecticut," said Alfred Mann, chairman and chief executive officer of MannKind. "Upon the closing of this transaction, we will obtain an immediate supply of insulin and the ability to supply our insulin needs for the future, even if we are unable to acquire the facility itself. We are pleased with this opportunity to secure our insulin supply, which brings AFRESA one step closer to commercial readiness."