MannKind Corporation Reports Second Quarter Financial Results

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- Conference Call Today at 5:00 p.m. ET -

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

MNKD

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