MannKind Agrees with Pfizer on the Purchase of Frankfurt Insulin Manufacturing Plant
09 March 2009 - 9:00PM
PR Newswire (US)
VALENCIA, Calif., March 9 /PRNewswire-FirstCall/ -- MannKind
Corporation (NASDAQ:MNKD) today announced that it has entered into
agreements with Pfizer Inc. (NYSE:PFE) to purchase Pfizer's insulin
facility at Industriepark Hoechst, Frankfurt am Main, Germany and
assets related to the production of bulk insulin, including the
relevant real property rights, the production equipment, a quantity
of bulk insulin and a license to manufacture bulk insulin for use
in pulmonary delivery. The aggregate purchase price is $33 million,
subject to certain adjustments. At MannKind's option, up to $30
million worth of the company's common stock may be issued to Pfizer
at closing and applied toward the full purchase price. The transfer
of certain real property rights pursuant to this transaction will
require the consent of third parties. Upon the closing of this
transaction, MannKind intends to retain more than half of the
current workforce, subject to consultation with the works council
and employee co-determination rights, and plans to operate the
facility at a production level commensurate with the company's
present needs for recombinant human insulin. In the event 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 Corporation.
"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."
Additional information about this transaction is available in a
Current Report on Form 8-K filed by MannKind with the Securities
and Exchange Commission earlier today. About AFRESA(R) AFRESA is an
ultra rapid acting insulin product that has completed Phase 3
trials. The pharmacokinetic profile of AFRESA sets it apart from
all other insulin products. The large surface area of the lung
provides unique access to the circulatory system. The pH-sensitive
AFRESA particles immediately dissolve upon contact with the lung
surface, releasing insulin monomers that rapidly enter the
bloodstream. It achieves peak insulin levels within 12-14 minutes
of administration, effectively mimicking the release of meal-time
insulin observed in healthy individuals, but which is absent from
patients with diabetes. About MannKind Corporation MannKind
Corporation (NASDAQ:MNKD) focuses on the discovery, development and
commercialization of therapeutic products for patients with
diseases such as diabetes and cancer. Its pipeline includes AFRESA,
which has completed Phase 3 clinical trials, and MKC253, which is
currently in phase 1 clinical trials. Both of these investigational
products are being evaluated for their safety and efficacy in the
treatment of diabetes. MannKind maintains a website at
http://www.mannkindcorp.com/ to which MannKind regularly posts
copies of its press release as well as additional information about
MannKind. Interested persons can subscribe on the MannKind website
to email alerts that are sent automatically when MannKind issues
press releases, files its reports with the SEC or posts certain
other information to the website. Forward-Looking Statements This
press release contains forward-looking statements, including
statements related to the expected effects on the Company of the
purchase of certain assets, the expected timing and scope of such
purchase, obtaining consents from third parties and the ability to
successfully implement such purchase. Words such as "believes",
"anticipates", "plans", "expects", "intend", "will", "goal",
"potential" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon MannKind's current expectations and involve risks and
uncertainties. Actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which
include, without limitation, risks and uncertainties related to the
parties' abilities to obtain the necessary third-party consents and
to otherwise complete the transactions contemplated in their
agreements and other risks detailed in MannKind's filings with the
Securities and Exchange Commission, including the Annual Report on
Form 10-K for the year ended December 31, 2008 and periodic reports
on Form 10-Q and Form 8-K. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. All forward-looking statements
are qualified in their entirety by this cautionary statement, and
MannKind undertakes no obligation to revise or update any
forward-looking statements to reflect events or circumstances after
the date of this news release. The shares of MannKind common stock
issuable to Pfizer at MannKind's option have not been registered
under the U.S. Securities Act of 1933 and may not be offered or
sold in the United States absent registration under the U.S.
Securities Act of 1933 and applicable state securities laws or
available exemptions from registration requirements. If MannKind
issues such shares, MannKind has agreed to file a registration
statement with respect to the resale of such shares following their
issuance. This press release shall not constitute an offer to sell
or the solicitation of an offer to buy these securities, nor shall
there be any sale of these securities in any state which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
state. Any offering of MannKind's common stock under the
registration statement referred to above will be made only by means
of a prospectus. DATASOURCE: MannKind Corporation CONTACT: Matthew
Pfeffer, Chief Financial Officer, MannKind Corporation,
+1-661-775-5300, Web Site: http://www.mannkindcorp.com/
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