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.
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
Chief Financial Officer
of MannKind Corporation,
investors, Evan Smith,
media, Robert Stanislaro,
for MannKind Corporation
Web site: http://www.mannkindcorp.com