MannKind Corporation Reports Second Quarter Financial Results
VALENCIA, Calif., Aug. 9 /PRNewswire-FirstCall/ -- MannKind Corporation (Nasdaq: MNKD) today reported financial results for the second quarter ended June 30, 2007.
For the second quarter of 2007, total operating expenses were $75.4 million, compared to $55.8 million for the second quarter of 2006. A substantial portion of this increase was attributed to increased research and development (R&D) expenses which totaled $61.5 million for this quarter compared to $45.3 million for the same quarter in 2006. These increased R&D costs were associated with the Company's expanded clinical development program and the associated manufacturing costs for Technosphere® Insulin. General and administrative (G&A) expenses increased by $3.5 million to $13.9 million for the second quarter of 2007 compared to the second quarter of 2006. This increase was due primarily to employee-related expenses and professional fees.
For the first six months of 2007, operating expenses totaled $152.7 million, compared to $100.9 million in the first half of 2006. R&D expenses were $125.3 million, up $44.0 million as compared to the first half of 2006, again primarily related to the Company's expanded clinical development program and the associated manufacturing costs for Technosphere® Insulin. G&A expenses increased by $7.9 million to $27.5 million for the first half of 2007 primarily related to increased employee-related costs and professional fees.
The net loss for the second quarter of 2007 was $72.0 million, or $0.98 per share, based on 73.4 million weighted average shares outstanding. This compares to a net loss of $54.8 million, or $1.10 per share, based on 49.6 million weighted average shares outstanding for the second quarter of 2006.
The net loss for the first half of 2007 was $145.1 million, or $1.98 per share based on 73.4 million shares outstanding, compared with a net loss of $98.3 million, or $1.98 per share based on 49.7 million shares outstanding, for the first half of 2006.
Cash, cash equivalents and marketable securities were $284.0 million at June 30, 2007, $365.6 million at March 31, 2007, and $436.5 million at December 31, 2006.
MannKind announced that it filed a shelf registration statement today. The registration statement, once it is declared effective, is intended to provide the Company with additional financing flexibility if and when deemed appropriate.
Conference Call
MannKind management will host a conference call to discuss these results today at 5:00 p.m. Eastern Time. To participate in the call please dial (888) 730-9140 or (210) 234-0008. To listen to the call via the Internet please visit http://www.mannkindcorp.com. The web site replay will be available for fourteen days. A telephone replay will be accessible for approximately 14 days following completion of the call by dialing (800) 756-6235 or (402) 998-0454 and entering conference number 1536761.
Presenting from the Company will be:
- Chairman and Chief Executive Officer Alfred Mann
President and Chief Operating Officer Hakan Edstrom
Corporate Vice President and Chief Financial Officer Dick Anderson
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, the Technosphere Insulin System, is currently in Phase 3 clinical trials in the United States, Europe and Latin America to study its safety and efficacy in the treatment of diabetes. For more information on MannKind Corporation and its technology, visit http://www.mannkindcorp.com.
(Tables to follow)
MannKind Corporation
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2007 2006 2007 2006
Revenue $ -- $ -- $10 $100
Operating expenses:
Research and
development 61,480 45,321 125,268 81,271
General and
administrative 13,913 10,456 27,463 19,594
Total operating
expenses 75,393 55,777 152,731 100,865
Loss from
operations (75,393) (55,777) (152,721) (100,765)
Other income 44 59 96 109
Interest expense
on senior
convertible notes (901) -- (2,046) --
Interest income 4,261 971 9,541 2,351
Loss before provision
for income taxes (71,989) (54,747) (145,130) (98,305)
Income taxes -- (4) -- (5)
Net loss $(71,989) $(54,751) $(145,130) $(98,310)
Net loss - basic
and diluted $ (0.98) $ (1.10) $ (1.98) $ (1.98)
Shares used to
compute basic and
diluted net loss
per share 73,421 49,638 73,405 49,712
MannKind Corporation
Condensed Balance Sheet
(Unaudited)
(in thousands)
June 30, December 31,
Assets 2007 2006
Current assets:
Cash and cash equivalents $216,429 $ 319,555
Marketable securities 67,599 116,924
State research and development tax
credit exchange receivable - current 3,918 2,418
Prepaid expenses and
other current assets 10,664 10,650
Total current assets 298,610 449,547
Property and equipment - net 118,331 88,328
State research and development tax credit
exchange receivable - net of current portion 750 1,500
Other assets 546 362
Total $418,237 $539,737
Liabilities and Stockholders' Equity
Current liabilities $58,411 $44,959
Other liabilities 24 24
Senior convertible notes 111,523 111,267
Stockholders' equity 248,279 383,487
Total $418,237 $539,737
SOURCE MannKind Corporation
CONTACT:
Dick Anderson,
Chief Financial Officer
of MannKind Corporation,
+1-661-775-5302,
danderson@mannkindcorp.com;
or
investor relations,
investors,
Evan Smith,
or
media, Robert Stanislaro,
+1-212-850-5600,
mnkd@fd.com,
for
MannKind Corporation
Web site: http://www.mannkindcorp.com