MannKind Corporation has signed an asset purchase agreement for the V-Go insulin delivery device from Zealand Pharma.

The transaction will include the technology as well as certain associated inventory and employees. As agreed, Zealand Pharma will receive $10m as consideration and be entitled to additional sales-based milestones.

V-Go is a wearable, once-daily insulin delivery device that can be used to maintain blood sugar levels instead of taking multiple daily shots.

The device, filled with insulin, is worn like a patch on the body and offers continuous insulin infusion to manage blood sugar levels.

The acquisition will further bolster MannKind’s portfolio and support its plans to offer new mealtime diabetes solutions.

MannKind CEO Michael Castagna said: “MannKind is passionate about being a leader in mealtime control to address this unmet need within the diabetes community.

“This acquisition strategically leverages our infrastructure in the diabetes space and positions MannKind’s endocrine business for additional growth.”

The deal is part of Zealand Pharma’s new strategy, which involves collaborating with new companies for late-stage and commercial assets in order to focus on research and development (R&D).

Zealand Pharma CEO Adam Steensberg said: “This transaction is an important step forward in executing on the strategic changes we announced at the end of March, to find partners for our commercial products and refocus our priorities on R&D.

“We believe we have found the right partner to fully leverage the value of V-Go and ensure continued availability of the product by patients and prescribers.”

The deal is slated to close later this month, subject to certain conditions.