MannKind to Buy Pfizer Insulin Factory

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MannKind Corp., which is preparing to seek U.S. approval for its inhaled insulin product, said Monday it will buy Pfizer Inc.’s insulin factory in Germany and related assets for about $33 million.

The Valencia biotech said the agreement gives it the option to issue $30 million worth of its common stock to Pfizer toward the cost of deal. That would give the New York drug giant an indirect stake in a market it abandoned last year when it stopped selling its own inhaled insulin treatment due to poor sales and safety reasons.

MannKind is preparing to submit an application for its Afresa treatment to the U.S. Food and Drug Administration. The company said it plans on keeping half the work force at the German plant.

Even if MannKind is not able to get approval from certain third parties that hold some property rights to the facility, Chief Executive Al Mann said the deal still gives it an inventory of recombinant human insulin it can use to launch its Afresa inhaler, plus some manufacturing equipment.

MannKind shares were up 18 cents, or 8 percent, to $2.35 in morning trading on the Nasdaq.

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