MannKind Corporation Reports 2012 Second Quarter Financial Results
MannKind Corporation Reports 2012 Second Quarter Financial Results
VALENCIA, Calif.--(BUSINESS WIRE)--Aug. 7, 2012--
MannKind Corporation (Nasdaq: MNKD) today reported financial
results for the second quarter ended June 30, 2012.
For the second quarter of 2012, total operating expenses were $44.1
million, compared to $39.2 million for the second quarter of 2011, an
increase of $4.9 million. Research and development (R&D) expenses were
$26.6 million for the second quarter of 2012 compared to $30.3 million
for the same quarter in 2011, a decrease of $3.7 million. This 12.2%
decrease was primarily due to the settlement of the terminated insulin
supply agreement in the second quarter of 2011 of $11.9 million,
partially offset by an increase of $7.5 million in clinical trial
related activities. General and administrative (G&A) expenses increased
by $8.5 million to $17.4 million for the second quarter of 2012 compared
to $8.9 million in the second quarter of 2011. This 95.5% increase in
G&A expense was primarily due to a $7.7 million litigation settlement
accrual recorded in the second quarter of 2012 and increased legal fees
and financing transaction costs.
For the first six months of 2012, operating expenses totaled $78.0
million, compared to $77.2 million in the first half of 2011. Total R&D
expenses for the six months ended June 30, 2012 decreased $5.8 million
or 10.2% compared to the same period in 2011, primarily due to the
termination of the insulin supply agreement partially offset by
increased clinical trial related activities in the first half of 2012.
G&A expenses increased by $6.5 million, or 31.7%, to $27.2 million for
the first half of 2012 as compared to $20.7 million in the same period
in 2011. The increase was primarily due to the $7.7 million litigation
settlement accrual recorded in the second quarter of 2012 and increased
legal fees and financing transaction costs, partially offset by the
decrease in salary related costs as a result of the February 2011
reduction in force.
The net loss applicable to common stockholders for the second quarter of
2012 was $36.6 million, or $0.23 per share based on 159.9 million
weighted average shares outstanding, compared with a net loss applicable
to common stockholders of $44.5 million, or $0.37 per share based on
121.7 million weighted average shares outstanding for the second quarter
of 2011. The number of common shares outstanding at June 30, 2012 was
199,300,833.
Cash, cash equivalents and marketable securities were $32.0 million at
June 30, 2012 and $3.2 million at December 31, 2011.
Conference Call
MannKind management will host a conference call to discuss these results
today at 9:00 a.m. Eastern Time. To participate in the call please dial
(800) 447-0521 or (847) 413-3238 and use the participant passcode:
32993955. To listen to the call via the Internet please visit http://www.mannkindcorp.com.
The web site replay will be available for 14 days. A telephone replay
will be accessible for approximately 14 days following completion of the
call by dialing (888) 843-7419 or (630) 652-3042 and use the participant
passcode: 3299 3955#.
Presenting from the Company will be:
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Chairman and Chief Executive Officer Alfred Mann
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President and Chief Operating Officer Hakan Edstrom
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Corporate Vice President and Chief Financial Officer Matthew Pfeffer
About MannKind Corporation
MannKind Corporation (Nasdaq: MNKD) focuses on the discovery,
development and commercialization of therapeutic products for patients
with diseases such as diabetes and cancer. Its lead product candidate,
AFREZZA®, is in late stage clinical investigation for the treatment of
adults with type 1 or type 2 diabetes for the control of hyperglycemia.
MannKind maintains a website at http://www.mannkindcorp.com
to which MannKind regularly posts copies of its press releases as well
as additional information about MannKind. Interested persons can
subscribe on the MannKind website to e-mail alerts that are sent
automatically when MannKind issues press releases, files its reports
with the Securities and Exchange Commission or posts certain other
information to the website.
Forward-Looking Statements
This press release contains forward-looking statements, including
statements related to MannKind’s proposed public offering of common
stock, that involve risks and uncertainties. Words such as “believes”,
“anticipates”, “plans”, “expects”, “intends”, “will”, “goal”,
“potential” and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are based
upon MannKind’s current expectations. Actual results and the timing of
events could differ materially from those anticipated in such
forward-looking statements as a result of these risks and uncertainties,
which include, without limitation, risks associated with market
conditions and the satisfaction of customary closing conditions related
to the proposed offering, the progress, timing and results of clinical
trials, difficulties or delays in seeking or obtaining regulatory
approval, the manufacture of AFREZZA, competition from other
pharmaceutical or biotechnology companies, MannKind’s ability to enter
into any collaborations or strategic partnerships, intellectual property
matters, stock price volatility and other risks detailed in MannKind’s
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2011 and
periodic reports on Form 10-Q and Form 8-K. You are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary statement,
and MannKind undertakes no obligation to revise or update any
forward-looking statements to reflect events or circumstances after the
date of this press release.
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MannKind Corporation
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(A Development Stage Company)
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Condensed Consolidated Statements of Operations
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(Unaudited)
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(In thousands, except per share amounts)
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|
|
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|
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Three months ended
June 30,
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Six months ended
June 30,
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Cumulative period
from February 14,
1991 (date of
inception) to
June 30,
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|
|
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2012
|
|
|
|
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2011
|
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|
|
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2012
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2011
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2012
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Revenue
|
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$
|
—
|
|
|
|
$
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—
|
|
|
|
$
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—
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|
|
|
$
|
50
|
|
|
|
$
|
3,131
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|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Research and development
|
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|
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26,638
|
|
|
|
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30,296
|
|
|
|
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50,794
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|
|
|
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56,585
|
|
|
|
|
1,416,845
|
|
|
General and administrative
|
|
|
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17,416
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|
|
|
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8,890
|
|
|
|
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27,193
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|
|
|
|
20,652
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|
|
|
|
407,424
|
|
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In-process research and development costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
19,726
|
|
|
Goodwill impairment
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
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151,428
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Total operating expenses
|
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44,054
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|
|
|
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39,186
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|
|
|
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77,987
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|
|
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77,237
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|
|
|
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1,995,423
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Loss from operations
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|
|
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(44,054
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)
|
|
|
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(39,186
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)
|
|
|
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(77,987
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)
|
|
|
|
(77,187
|
)
|
|
|
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(1,992,292
|
)
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Other income
|
|
|
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13,345
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|
|
|
|
47
|
|
|
|
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14,727
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|
|
|
|
1,397
|
|
|
|
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13,651
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|
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Interest expense on note payable to related party
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|
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(3,028
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)
|
|
|
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(2,509
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)
|
|
|
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(6,076
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)
|
|
|
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(4,985
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)
|
|
|
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(34,410
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)
|
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Interest expense on senior convertible notes
|
|
|
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(2,844
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)
|
|
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(2,834
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)
|
|
|
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(5,419
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)
|
|
|
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(5,247
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)
|
|
|
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(34,213
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)
|
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Interest income
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
17
|
|
|
|
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36,991
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|
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Loss before provision for income taxes
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|
|
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(36,580
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)
|
|
|
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(44,480
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)
|
|
|
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(74,753
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)
|
|
|
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(86,005
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)
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|
|
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(2,010,273
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)
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Income taxes
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
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(26
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)
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Net loss
|
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|
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(36,580
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)
|
|
|
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(44,480
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)
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|
|
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(74,753
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)
|
|
|
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(86,005
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)
|
|
|
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(2,010,299
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)
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Deemed dividend related to beneficial conversion feature of
convertible preferred stock
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
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(22,260
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)
|
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Accretion on redeemable preferred stock
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(952
|
)
|
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Net loss applicable to common stockholders
|
|
|
$
|
(36,580
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)
|
|
|
$
|
(44,480
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)
|
|
|
$
|
(74,753
|
)
|
|
|
$
|
(86,005
|
)
|
|
|
$
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(2,033,511
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)
|
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Net loss per share applicable to common stockholders — basic and
diluted
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
(0.37
|
)
|
|
|
$
|
(0.49
|
)
|
|
|
$
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(0.71
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)
|
|
|
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Shares used to compute basic and diluted net loss per share
applicable to common stockholders
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|
|
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159,859
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|
|
|
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121,708
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|
|
|
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151,506
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|
|
|
|
121,385
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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MannKind Corporation
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(A Development Stage Company)
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Condensed Consolidated Balance Sheet
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(Unaudited)
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(in thousands)
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June 30, 2012
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December 31, 2011
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Assets
|
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Current assets:
|
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Cash and cash equivalents
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$
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31,639
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$
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2,681
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Marketable securities
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|
350
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|
|
|
|
515
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Prepaid expenses and other current assets
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18,357
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|
|
|
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2,625
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Total current assets
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50,346
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5,821
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Property and equipment — net
|
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189,159
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|
|
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193,029
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State research and development credit exchange receivable — net of
current portion
|
|
|
|
658
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|
|
|
|
473
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|
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Other assets
|
|
|
|
230
|
|
|
|
|
230
|
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Total
|
|
|
$
|
240,393
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|
|
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$
|
199,553
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Liabilities and Stockholders’ Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Current liabilities
|
|
|
$
|
55,441
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|
|
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$
|
25,360
|
|
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Senior convertible notes
|
|
|
|
211,184
|
|
|
|
|
210,642
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|
|
Note payable to principal stockholder
|
|
|
|
218,142
|
|
|
|
|
277,203
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|
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Stockholders’ deficit
|
|
|
|
(244,374
|
)
|
|
|
|
(313,652
|
)
|
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Total
|
|
|
$
|
240,393
|
|
|
|
$
|
199,553
|
|
|
|
|
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|
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Source: MannKind Corporation
Company Contact:
MannKind
Corporation
Matthew J. Pfeffer
Chief Financial Officer
661-775-5300
mpfeffer@mannkindcorp.com
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