will purchase Pfizer
's insulin facility in Frankfurt for $33 million. The agreement also includes the acquisition of 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.
Upon the closing of this transaction, MannKind intends to retain more than half of the current workforce 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 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,” notes Alfred Mann, chairman and CEO 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.” Afresa is an ultrarapid-acting insulin product that has completed Phase III trials.