MannKind Corporation Reports 2012 First Quarter Financial Results
For the first quarter of 2012, total operating expenses were
The net loss applicable to common stockholders for the first quarter of
2012 was
Cash, cash equivalents and marketable securities were
On
On
Conference Call
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
Matthew Pfeffer
About
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
| MannKind Corporation | ||||||||||||
| (A Development Stage Company) | ||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands, except per share amounts) | ||||||||||||
|
|
Three months ended March 31, |
Cumulative period from February 14, 1991 (date of inception) to December 31, |
||||||||||
| 2012 | 2011 | 2012 | ||||||||||
| Revenue | $ | — | $ | 50 | $ | 3,131 | ||||||
| Operating expenses: | ||||||||||||
| Research and development | 24,156 | 26,289 | 1,390,207 | |||||||||
| General and administrative | 9,777 | 11,762 | 390,008 | |||||||||
| In-process research and development costs | — | — | 19,726 | |||||||||
| Goodwill impairment | — | — | 151,428 | |||||||||
| Total operating expenses | 33,933 | 38,051 | 1,951,369 | |||||||||
| Loss from operations | (33,933 | ) | (38,001 | ) | (1,948,238 | ) | ||||||
| Other income (expense) | 1,382 | 1,350 | 306 | |||||||||
| Interest expense on note payable to principal stockholder | (3,048 | ) | (2,476 | ) | (31,382 | ) | ||||||
| Interest expense on senior convertible notes | (2,575 | ) | (2,413 | ) | (31,369 | ) | ||||||
| Interest income | 1 | 15 | 36,990 | |||||||||
| Loss before provision for income taxes | (38,173 | ) | (41,525 | ) | (1,973,693 | ) | ||||||
| Income taxes | — | — | (26 | ) | ||||||||
| Net loss | (38,173 | ) | (41,525 | ) | (1,973,719 | ) | ||||||
| Deemed dividend related to beneficial conversion feature of convertible preferred stock | — | — | (22,260 | ) | ||||||||
| Accretion on redeemable preferred stock | — | — | (952 | ) | ||||||||
| Net loss applicable to common stockholders | $ | (38,173 | ) | $ | (41,525 | ) | $ | (1,996,931 | ) | |||
| Net loss per share applicable to common stockholders — basic and diluted | $ | (0.27 | ) | $ | (0.34 | ) | ||||||
| Shares used to compute basic and diluted net loss per share applicable to common stockholders | 143,154 | 121,057 | ||||||||||
| MannKind Corporation | ||||||||
| (A Development Stage Company) | ||||||||
| Condensed Consolidated Balance Sheet | ||||||||
| (Unaudited) | ||||||||
| (in thousands) | ||||||||
|
|
March 31, 2012 |
December 31, 2011 |
||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 56,355 | $ | 2,681 | ||||
| Marketable securities | 350 | 515 | ||||||
| State research and development credit exchange receivable — current | - | - | ||||||
| Prepaid expenses and other current assets | 3,004 | 2,625 | ||||||
| Total current assets | 59,709 | 5,821 | ||||||
| Property and equipment — net | 190,916 | 193,029 | ||||||
| State research and development credit exchange receivable — net of current portion | 565 | 473 | ||||||
| Other assets | 230 | 230 | ||||||
| Total | $ | 251,420 | $ | 199,553 | ||||
|
Liabilities and Stockholders’ Deficit |
||||||||
|
Current liabilities |
$ | 34,407 | $ | 25,360 | ||||
| Senior convertible notes | 210,946 | 210,642 | ||||||
| Note payable to principal stockholder | 283,453 | 277,203 | ||||||
| Stockholders’ deficit | (277,386 | ) | (313,652 | ) | ||||
| Total | $ | 251,420 | $ | 199,553 | ||||
Source:
MannKind Corporation
Matthew J. Pfeffer
Chief Financial Officer
661-775-5300
mpfeffer@mannkindcorp.com