MannKind agrees to license its inhaled-insulin drug Afrezza to Sanofi

Less than two months after receiving approval for an inhalable form of insulin, MannKind Corp. agreed to license the drug to Paris-based Sanofi in a deal that could provide the Valencia company with $925 million.

Sanofi will initially pay MannKind $150 million to handle global commercial, regulatory and development activities for the drug, Afrezza, the companies announced Monday.

MannKind could also receive $775 million if Afrezza meets sales and development targets. The drug would be the only inhalable form of insulin on the market.

In late June, the Food and Drug Administration approved the sale of Afrezza to treat people with Type 1 and Type 2 diabetes.

Entrepreneur Alfred Mann spent more than a decade and nearly $1 billion of his personal fortune to develop the drug.

Under Monday’s agreement, MannKind and Sanofi will share the global profits and losses stemming from Afrezza, with Sanofi taking 65% and MannKind 35%.

MannKind said it would manufacture the drug at its facility in Danbury, Conn.

The companies said they plan to launch Afrezza in the United States at the beginning of next year.

MannKind’s stock was up 72 cents, or 9%, to $8.85 in trading early Monday.

Twitter: @khouriandrew