With a buyout of scPharmaceuticals worth up to $360 million, MannKind is looking to dive into the large and growing field of cardiometabolic treatments.
Endocrine and orphan lung disease-focused MannKind will shell out $5.35 per share—plus a contingent value right (CVR) of $1.00 per share—to buy scPharmaceuticals and Furoscix, the latter company's on-body infuser that delivers furosemide.
The total deal value of $360 million represents a 31% premium to scPharmaceuticals’ Aug. 22 closing price, according to a Monday press release.
With the deal, MannKind will add scPharmaceuticals’ Furoscix to its lineup of marketed products. The 2022-approved drug is an on-body infuser that delivers generic furosemide as a self-administered, subcutaneous loop diuretic to help relieve the fluid retention and swelling that accompany heart failure and other conditions.
In March, Furoscix tacked on a new indication, allowing its use to treat edema in patients with chronic kidney disease (CKD).
Over the first half of this year, scPharmaceuticals pulled in sales growth of 96% from the same period last year, generating $27.8 million. MannKind expects its own established strengths in the endocrinology department to help boost Furoscix’s market opportunity in CKD, and it plans to continue utilizing the “talented team” at scPharmaceuticals to continue fostering the drug's growth.
MannKind currently markets inhalation powder Afrezza for type 1 and 2 diabetes, plus an all-in-one insulin delivery patch V-Go as well as United Therapeutics-partnered pulmonary arterial hypertension (PAH) treatment Tyvaso DPI. With Furoscix in the mix, the company expects its annual sales will grow beyond $370 million.
The company amended a strategic financing agreement with Blackstone to add $175 million in additional funding to support the acquisition.
ScPharmaceuticals’ shares surged more than 14.90% on Monday morning to $5.58, while MannKind’s dipped by 5.35% to $3.89.