NEW YORK (AP) -- Diabetes drug developer MannKind Corp. said Monday that it is licensing a group of experimental drugs to Tolero Pharmaceuticals Inc. in a deal that could be worth more than $130 million.
MannKind said the drug candidates are being studied as treatments for blood cancers and inflammatory diseases. Tolero will have worldwide rights to develop the drugs. Tolero will pay MannKind as the drugs advance through clinical development and regulatory review and reach sales targets if they are approved. MannKind said it will also receive licensing payments and royalties on any sales.
The Valencia, Calif., company will have the right to require the drugs after early-stage clinical testing is complete.
Tolero is based in Salt Lake City, and it develops treatments for cancer and other diseases.
MannKind is trying to get marketing approval for an inhaled insulin called Afrezza. However approval of the product has been delayed for years as regulators asked for more testing. MannKind has been raising money to complete testing and its new application. In January the company said it planned to sell $50 million in stock and as much as $161 million in debt. It said it would need to raise more money after that.
The company plans to file for approval of Afrezza again in early