This morning MannKind (NASDAQ: MKNKD) announced a license agreement with Receptor Life Sciences. According to a company issued press release:

“MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced that it has entered into a collaboration and license agreement with a newly formed entity, Receptor Life Sciences, Inc., pursuant to which multiple inhaled therapeutic products will be developed to explore their potential to treat conditions such as chronic pain, neurologic diseases and inflammatory disorders.

Under the terms of the agreement, MannKind will perform initial formulation studies and will work with Receptor to develop inhaled formulations of certain undisclosed compounds. MannKind will also transfer manufacturing technology to the licensee, who will be responsible for manufacturing and commercialization activities. The parties will collaborate on the clinical development of investigational products, with Receptor being responsible for all development costs.  MannKind will be eligible to receive development and commercialization milestones of up to $102.25 million as well as mid-single to low double-digit royalties on net sales of product.”

Not surprisingly shares of MannKind are up on the news as investors seem to be focusing on two things. First the company appears to be following through on their plan to do deals and do them quickly. Second, the possibility of getting over $100 million doesn’t hurt either. This of course assumes that Receptor Life is for real for about all we can find out about the company is that it’s based in Seattle Washington and is a startup.

Go ahead and check out the company’s web site www.receptorlife.com or do a simple Google search on the company. Even better log onto LinkedIn and see if you can find anything at all about this company that if all goes well will pay MannKind $100 million. Now to be fair we have reached out to the people at Receptor, we assume they do have employees, as we really would like to know just what the heck they do, how long they have been in business, who’s associated with the company, who the investors are – you know little things like that.

The sad reality is MannKind is desperate as the company is fighting to survive. In the coming days, weeks and months ahead we suspect we’ll see more deals like this one, deals which are basically backend loaded. This is too bad as the company needs upfront payments to remain viable. It wouldn’t hurt either if they did a deal with a company that’s been around awhile. Not sure who Receptor is but they sure have a pretty picture on their web site – let’s just hope for MannKind this is not all they have.