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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2016	May 02, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	MNKD
Entity Registrant Name	MANNKIND CORP
Entity Central Index Key	0000899460
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		429,161,347

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 27,653	$ 59,074
Receivables from collaboration	144	23
Deferred product costs from collaboration	13,539	13,539
Prepaid expenses and other current assets	2,807	4,018
Total current assets	44,143	76,654
Property and equipment - net	48,033	48,749
Other assets	1,096	1,009
Total	93,272	126,412
Current liabilities:
Accounts payable	582	15,599
Accrued expenses and other current liabilities	8,077	7,929
Facility financing obligation	75,010	74,582
Deferred product sales from collaboration	17,680	17,503
Deferred payments from collaboration	134,935	140,231
Purchase commitment liabilities - current	12,927	12,475
Total current liabilities	249,211	268,319
Note payable to principal stockholder	49,521	49,521
Sanofi loan facility and loss share obligation	68,835	62,371
Senior convertible notes	27,618	27,613
Net purchase commitments	55,605	53,692
Other liabilities	15,946	15,225
Total liabilities	466,736	476,741
Commitments and contingencies
Stockholders' equity (deficit):
Undesignated preferred stock, $0.01 par value - 10,000,000 shares authorized; no shares issued or outstanding at March 31, 2016 and December 31, 2015
Common stock, $0.01 par value - 550,000,000 shares authorized at March 31, 2016 and December 31, 2015; 429,138,685 and 428,670,943 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	4,290	4,287
Additional paid-in capital	2,510,367	2,508,633
Accumulated other comprehensive loss	(19)	(20)
Accumulated deficit	(2,888,102)	(2,863,229)
Total stockholders' deficit	(373,464)	(350,329)
Total	$ 93,272	$ 126,412

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Undesignated preferred stock, par value	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	10,000,000	10,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	550,000,000	550,000,000
Common stock, shares issued	429,138,685	428,670,943
Common stock, shares outstanding	429,138,685	428,670,943

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue	$ 0	$ 0
Operating expenses:
Research and development	5,130	9,377
General and administrative	7,351	10,479
Product manufacturing	7,532	1,882
Total operating expenses	20,013	21,738
Loss from operations	(20,013)	(21,738)
Other income	67	1,413
Interest expense on note payable to principal stockholder	(721)	(714)
Interest expense on notes	(4,221)	(9,622)
Interest income	15	3
Loss before benefit for income taxes	(24,873)	(30,658)
Income tax benefit	0	0
Net loss	$ (24,873)	$ (30,658)
Net loss per share - basic and diluted	$ (0.06)	$ (0.08)
Shares used to compute basic and diluted net loss per share	428,858	398,916

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net loss	$ (24,873)	$ (30,658)
Other comprehensive loss:
Other comprehensive (loss) income - cumulative translation gain (loss)	1	(7)
Other comprehensive gain (loss)	1	(7)
Comprehensive loss	$ (24,872)	$ (30,665)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (24,873)	$ (30,658)
Adjustments to reconcile net loss to net cash provided by (used) in operating activities:
Depreciation and accretion	1,023	2,988
Stock-based compensation expense	1,273	2,003
Interest incurred through borrowings under Sanofi Loan Facility	1,168	33
Loss on foreign currency exchange	2,364
Other, net	696	(7)
Changes in assets and liabilities:
Inventory		(7,119)
Receivables from Collaboration	(121)	46,154
Prepaid expenses and other current assets	1,211	3,831
Deferred product costs from collaboration		(6,251)
Other assets	(86)	(872)
Accounts payable	(14,799)	(4,182)
Accrued expenses and other current liabilities	488	(10,660)
Deferred product sales from collaboration	177	7,050
Other liabilities	721	710
Net cash provided by (used in) operating activities	(30,758)	3,020
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,144)	(4,203)
Proceeds from sale of property and equipment	17
Net cash used in investing activities	(1,127)	(4,203)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	467	6,168
Milestone payment		(4,220)
Payment of employment taxes related to vested restricted stock units	(3)	(762)
Net cash provided by financing activities	464	1,186
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(31,421)	3
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	59,074	120,841
CASH AND CASH EQUIVALENTS, END OF PERIOD	27,653	120,844
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
Interest paid in cash, net of amounts capitalized	2,713	4,749
Non-cash construction in progress and property and equipment	$ 558	$ 1,094

Description of business and basis of presentation

3 Months Ended

Mar. 31, 2016

Description of business and basis of presentation

1. Description of business and basis of presentation

The accompanying unaudited condensed consolidated financial statements of MannKind Corporation and its subsidiaries (“MannKind,” the “Company,” “we” or “us”), have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 15, 2016 (the “Annual Report”).

In the opinion of management, all adjustments, consisting only of normal, recurring adjustments, considered necessary for a fair presentation of the results of these interim periods have been included. The results of operations for the three months ended March 31, 2016 may not be indicative of the results that may be expected for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates or assumptions. The more significant estimates reflected in these accompanying financial statements involve assessing long-lived assets and deferred product costs for impairment, accrued expenses, valuation of stock-based compensation and the determination of the provision for income taxes and corresponding deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements.

Business — MannKind is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases such as diabetes. Our only approved product, AFREZZA (insulin human [rDNA origin]) inhalation powder, is a rapid-acting inhaled insulin that was approved by the U.S. Food and Drug Administration (the “FDA”) on June 27, 2014 to improve glycemic control in adult patients with diabetes.

Basis of Presentation — The Company’s primary activities since incorporation have been establishing its facilities, recruiting personnel, conducting research and development, business development, business and financial planning, raising capital and commercial manufacturing. It is costly to develop therapeutic products and conduct clinical studies for these products. As of March 31, 2016, the Company had an accumulated deficit of $2.9 billion and has reported negative cash flow from operations since inception, other than for the nine months ended September 30, 2014, the year ended December 31, 2014, and for the three months ended March 31, 2015, as a result of receipt of the upfront payment and milestone payments from Sanofi-Aventis U.S. LLC (“Sanofi”).

At March 31, 2016, the Company’s capital resources consisted of cash and cash equivalents of $27.7 million. The Company expects to continue to incur significant expenditures to support commercial manufacturing and sales and marketing of AFREZZA and the development of other product candidates. The facility agreement (the “Facility Agreement”) with Deerfield Private Design Fund II, L.P. (“Deerfield Private Design Fund”) and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) and the First Amendment to Facility Agreement and Registration Rights Agreement (the “First Amendment”) that resulted in additional sales of an additional tranche of notes (the “Tranche B notes”) (see Note 12 — Facility Agreement) requires the Company to maintain at least $25.0 million in cash and cash equivalents or available borrowings under the loan arrangement, dated as of October 2, 2007, between The Company and The Mann Group LLC (as amended, restated, or otherwise modified as of the date hereof, “The Mann Group Loan Arrangement”), as of the last day of each fiscal quarter. The Company will need to continue to incur expenses for the commercialization of AFREZZA and will need to raise additional capital to finance such activities. The Company cannot be certain that it will be able to raise additional capital on favorable terms, or at all, which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

On August 11, 2014, we executed a license and collaboration agreement (the “Sanofi License Agreement”) with Sanofi-Aventis Deutschland GmbH (which subsequently assigned its rights and obligations under the agreement to Sanofi), pursuant to which Sanofi was responsible for global commercial, regulatory and development activities for AFREZZA. The Sanofi License Agreement became effective on September 23, 2014. The Company manufactured AFREZZA at its manufacturing facility in Danbury, Connecticut to supply Sanofi’s demand for the product pursuant to a supply agreement dated August 11, 2014 (the “Sanofi Supply Agreement”).

On January 4, 2016 the Company received notification from Sanofi of its election to terminate in its entirety the Sanofi License Agreement. Pursuant to a transition agreement between the Company and Sanofi, all rights to AFREZZA transferred back to the Company on April 4, 2016 to the Company. Accordingly, on April 5, 2016, the Company assumed responsibility for the worldwide development and commercialization of AFREZZA from Sanofi, in a transition designed to ensure that patients will not experience any interruption in their treatment. Under the terms of the transition agreement, Sanofi will continue to fulfill orders for AFREZZA until such time as Sanofi’s inventory of usable product is depleted or until the Company provides Sanofi written notice requesting that Sanofi cease such activities, but in any event no later than October 1, 2016.

Under the Sanofi License Agreement, worldwide profits and losses, which are determined based on the difference between the net sales of AFREZZA and the costs and expenses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of AFREZZA, are shared 65% by Sanofi and 35% by the Company until Sanofi ceases to distribute AFREZZA. As a result of this loss share provision, and because the Company does not currently have the ability to estimate the amount of costs that would potentially be incurred related to the Sanofi License Agreement, the amount of up-front cash payment or milestone payments that could be recognized as revenue is not fixed or determinable. In connection with the Sanofi License Agreement, an affiliate of Sanofi provided the Company with a secured loan facility (the “Sanofi Loan Facility”) of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement.

Additional funding sources that are, or in certain circumstances may be, available to the Company, include approximately $30.1 million principal amount of available borrowings under The Mann Group Loan Arrangement. A portion of these available borrowings may be used to capitalize accrued interest into principal, upon mutual agreement of the parties, as it becomes due and payable under The Mann Group Loan Arrangement (see Note 4 — Related-party arrangements). The Company cannot provide assurances that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company is seeking and will need to raise additional capital, whether through a sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means, in order to continue the development and commercialization of AFREZZA and other product candidates and to support its other ongoing activities. However, the Company cannot provide assurances that such additional capital will be available on acceptable terms or at all.

Fair Value of Financial Instruments — The carrying amounts reported in the accompanying financial statements for cash and cash equivalents, accounts payable and accrued liabilities approximate their fair value due to their relatively short maturities. The fair value of the cash equivalents, note payable to related party, senior convertible notes, and the Facility Agreement are discussed in Note 7 – Fair Value of Financial Instruments.

Deferred product costs from collaboration — Deferred product costs represent the costs of product manufactured and shipped to Sanofi, not to exceed the amount of deferred product sales related to the collaboration, for which recognition of revenue has been deferred. Given that the costs of inventory delivered to a customer, but for which revenue may not yet be recognized, meet both the definition and characteristics of an “asset” and the Company believes that it is probable that the amount of future revenue will exceed the amount of deferred costs (i.e., the asset would be realizable through the recognition of probable future income), the Company has elected to account for the deferred costs related to the product sold to Sanofi as an asset and carry forward to future periods until the related revenue is recognized.

Recently Issued Accounting Standards — From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date.

In May 2014, the FASB issued ASU 2014-09 related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. We are assessing the potential impact of the new standards on our consolidated financial statements and have not yet selected a method of adoption.

In August 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company is evaluating the impact the adoption of ASU 2014-15 will have on its consolidated financial statements.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of ASU 2015-11 will have on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of ASU 2016-01 will have on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for us on January 1, 2019. The adoption of this standard is not expected to have a material impact on our financial position. The Company is evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact the adoption of ASU 2016-09 will have on its consolidated financial statements.

Property and equipment

3 Months Ended

Mar. 31, 2016

Property and equipment

2. Property and equipment

Property and equipment — net consist of the following (dollar amounts in thousands):


	Estimated Useful Life (Years)		March 31, 2016			December 31, 2015
Land		—	$	3,435		$	3,435
Buildings		39-40		21,590			21,590
Building improvements		5-40		60,584			60,584
Machinery and equipment		3-15		67,761			68,434
Furniture, fixtures and office equipment		5-10		4,114			4,114
Computer equipment and software		3		9,519			9,519
Construction in progress				460			586

				167,463			168,262
Less accumulated depreciation and amortization				(119,430	)		(119,513	)

Property and equipment — net			$	48,033		$	48,749

The December 31, 2015 balances have been reclassified to the current year presentation by allocating the impairment of $140.4 million to the individual asset groups.

Depreciation and amortization expense related to property and equipment for the three months ended March 31, 2016 and 2015 was $0.6 million and $2.3 million, respectively.

Accrued expenses and other current liabilities

3 Months Ended

Mar. 31, 2016

Accrued expenses and other current liabilities

3. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities are comprised of the following (in thousands):


	March 31, 2016		December 31, 2015
Salary and related expenses	$	5,685	$	5,662
Accrued interest		199		615
Construction in progress		—		238
Other		2,193		1,414

Accrued expenses and other current liabilities	$	8,077	$	7,929

Related-party arrangements

3 Months Ended

Mar. 31, 2016

Related-party arrangements

4. Related-party arrangements

In October 2007, the Company entered into a $350.0 million loan arrangement with its principal stockholder. The Mann Group Loan Arrangement has been amended from time to time. On October 31, 2013, the promissory note underlying The Mann Group Loan Arrangement was amended to, among other things, extend the maturity date of the loan to January 5, 2020, extend the date through which the Company can borrow under The Mann Group Loan Arrangement to December 31, 2019, increase the aggregate borrowing amount under The Mann Group Loan Arrangement from $350.0 million to $370.0 million and provide that repayments or cancellations of principal under The Mann Group Loan Arrangement will not be available for reborrowing.

As of March 31, 2016, the total principal amount outstanding under The Mann Group Loan Arrangement was $49.5 million, and the amount available for future borrowings was $30.1 million. Interest, at a fixed rate of 5.84%, is due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter, or at such other time as the Company and The Mann Group mutually agree. All or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized as additional borrowings at any time and would be classified as non-current upon mutual agreement of both parties. As of March 31, 2016, the Company had accrued $7.1 million of interest in other long term liabilities. The Mann Group can require the Company to prepay up to $200.0 million in advances that have been outstanding for at least 12 months (less approximately $105.0 million aggregate principal amount that has been cancelled in connection with two common stock purchase agreements). If The Mann Group exercises this right, the Company will have 90 days after The Mann Group provides written notice (or the number of days to maturity of the note if less than 90 days) to prepay such advances. However, pursuant to a letter agreement entered into in August 2010, The Mann Group has agreed to not require the Company to prepay amounts outstanding under the amended and restated promissory note if the prepayment would require the Company to use its working capital resources. The Mann Group entered into a subordination agreement with Deerfield pursuant to which The Mann Group agreed with Deerfield not to demand or accept any payment under The Mann Group Loan Arrangement until the Company’s payment obligations to Deerfield under the Facility Agreement have been satisfied in full. Subject to the foregoing, in the event of a default under The Mann Group Loan Arrangement, all unpaid principal and interest either becomes immediately due and payable or may be accelerated at The Mann Group’s option, and the interest rate will increase to the one-year LIBOR calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum. All borrowings under The Mann Group Loan Arrangement are unsecured. The Mann Group Loan Arrangement contains no financial covenants.

During the three months ended March 31, 2016, there were no additional borrowings under or amendments to The Mann Group Loan Arrangement.

In May 2015, the Company entered into a sublease agreement with the Alfred Mann Foundation for Scientific Research (the “Mann Foundation”), a California not-for-profit corporation. The lease is for approximately 12,500 square feet of office space in Valencia, California and expires in April 2017. The office space contains the Company’s principal executive offices. Lease payments to the Mann Foundation for the three months ended March 31, 2016 were $65,000 and there were no lease payments to the Mann Foundation for the three months ended March 31, 2015.

The Company has entered into indemnification agreements with each of its directors and executive officers, in addition to the indemnification provided for in its amended and restated certificate of incorporation and amended and restated bylaws (see Note 10 — Commitments and contingencies).

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Senior convertible notes

3 Months Ended

Mar. 31, 2016

Senior convertible notes

5. Senior convertible notes

Senior convertible notes consist of the following (in thousands):


	March 31, 2016			December 31, 2015
2018 notes
Principal amount	$	27,690		$	27,690
Unamortized premium		603			660
Unaccreted debt issuance costs		(675	)		(737	)

Net carrying amount	$	27,618		$	27,613

Issuance of new 5.75% Convertible Senior Subordinated Exchange Notes due 2018 in exchange for 2015 notes

On July 28, 2015, the Company entered into a privately-negotiated exchange agreement (the “Note Exchange Agreement”) with a select holder of the Company’s 5.75% Senior Convertible Notes due 2015 (the “2015 notes”), pursuant to which the Company agreed to issue $27.7 million aggregate principal amount of new 5.75% Convertible Senior Subordinated Exchange Notes due 2018 (the “2018 notes”) to such holder in exchange for the delivery to the Company of the same principal amount of 2015 notes. The 2018 notes were issued at the closing of the exchange on August 10, 2015. The Company analyzed this exchange under the provisions of ASC 470-50 and concluded that the exchange represents an extinguishment of the 2015 notes and a new issuance of 2018 notes and recorded such notes at fair value which resulted in a premium of $0.7 million.

The 2018 notes are the Company’s general, unsecured, senior obligations, except that the 2018 notes are subordinated in right of payment to the outstanding notes issued pursuant to the Facility Agreement and the Company’s borrowings under the Sanofi Loan Facility with an affiliate of Sanofi-Aventis U.S. LLC. The 2018 notes rank equally in right of payment with the Company’s other unsecured senior debt. The 2018 notes bear interest at the rate of 5.75% per year on the principal amount, payable semiannually in arrears in cash on February 15 and August 15 of each year, beginning February 15, 2016, with interest accruing from August 15, 2015. The 2018 notes mature on August 15, 2018.

The 2018 notes are convertible, at the option of the holder, at any time on or prior to the close of business on the business day immediately preceding the stated maturity date, into shares of the Company’s common stock at an initial conversion rate of 147.0859 shares per $1,000 principal amount of 2018 notes, which is equal to a conversion price of approximately $6.80 per share, the same conversion price as that of the 2015 notes on the date of exchange. The conversion rate is subject to adjustment under certain circumstances described in an indenture governing the 2018 notes dated August 10, 2015 with US Bank (as successor trustee to Wells Fargo, National Association), including in connection with a make-whole fundamental change. If certain fundamental changes occur, such as share price being over $4.82 on date of conversion, the Company will be obligated to pay a make-whole premium on any 2018 notes converted in connection with such fundamental change by increasing the conversion rate on such 2018 notes. In such instances, the amount of the fundamental change make-whole premium will be based on the Company’s common stock price and the effective date of the applicable fundamental change. The Company can force conversion at $6.80 or 747.1 thousand shares.

If the Company undergoes certain fundamental changes, except in certain circumstances, each holder of 2018 notes will have the option to require the Company to repurchase all or any portion of that holder’s 2018 notes. The fundamental change repurchase price will be 100% of the principal amount of the 2018 notes to be repurchased plus accrued and unpaid interest, if any.

On or after the date that is one year following the original issue date of the 2018 notes, the Company will have the right to redeem for cash all or part of the 2018 notes if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for 20 or more trading days during the 30 consecutive trading day period ending on the trading day immediately prior to the date of the redemption notice. The redemption price will equal the sum of 100% of the principal amount of the 2018 notes to be redeemed, plus accrued and unpaid interest. Under the terms of the indenture, the conversion option can be net-share settled and the maximum number of shares that could be required to be delivered under the indenture, including the make-whole shares, is fixed and less than the number of authorized and unissued shares less the maximum number of shares that could be required to be delivered during the term of the 2018 notes under existing commitments. Applying the Company’s sequencing policy, the Company performed an analysis at the time of the offering of the 2018 notes and each reporting date since and has concluded that the number of available authorized shares at the time of the offering and each subsequent reporting date was sufficient to deliver the number of shares that could be required to be delivered during the term of the 2018 notes under existing commitments.

The 2018 notes provide that upon an acceleration of certain indebtedness, including the 9.75% Senior Convertible Notes due 2019 (the “2019 notes”) and the 8.75% Senior Convertible Notes due 2019 (the “Tranche B notes”) issued to Deerfield pursuant to the Facility Agreement (see Note 13 — Facility Agreement), the holders may elect to accelerate the Company’s repayment obligations under the notes if such acceleration is not cured, waived, rescinded or annulled. There can be no assurance that the holders would not choose to exercise these rights in the event such events were to occur.

The Company incurred approximately $0.8 million in issuance costs which are recorded as an offset to the 2018 notes in the accompanying condensed consolidated balance sheet. These costs are being accreted to interest expense using the effective interest method over the term of the 2018 notes.

Accretion of debt issuance expense in connection with the 2018 notes for the three months ended March 31, 2016 was $62,000. Amortization of 2018 notes premium for the three months ended March 31, 2016 was $57,000.

Collaboration arrangement

3 Months Ended

Mar. 31, 2016

Collaboration arrangement

6. Collaboration arrangement

Sanofi License Agreement and Sanofi Supply Agreement

As disclosed in Note 1 under Basis of Presentation, the Company entered into a license and collaboration agreement with Sanofi which was terminated effective April 4, 2016. On April 5, 2016 the Company assumed responsibility for the worldwide development and commercialization of AFREZZA from Sanofi, in a transition designed to ensure that patients will not experience any interruption in their treatment. Under terms of the transition agreement, Sanofi will continue to fulfill orders for AFREZZA until such time as Sanofi’s inventory of usable product is depleted or until the Company provides Sanofi written notice requesting that Sanofi cease such activities, but in any event no later than October 1, 2016. As previously disclosed, worldwide profits and losses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of AFREZZA, are shared 65% by Sanofi and 35% by the Company until Sanofi Ceases to distribute AFREZZA.

The Company analyzed the agreements entered into with Sanofi to determine whether the consideration, or a portion thereof, could be recognized as revenue. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is reasonably assured. In addition, revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price of each deliverable and the appropriate revenue recognition principles are applied to each unit.

The assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that, or periods over which, revenue should be recognized. Under the terms of the Sanofi License Agreement, Sanofi Supply Agreement and the Sanofi Loan Facility the Company determined that the arrangement contained significant deliverables including (i) licenses to develop and commercialize AFREZZA and to use the Company’s trademarks, (ii) development activities, and (iii) manufacture and supply services for AFREZZA. Due to the proprietary nature of the manufacturing services being provided by the Company, the Company determined that all of the significant deliverables should be combined into a single unit of accounting. The Company believes that the manufacturing services are proprietary due to the fact that since the late 1990’s, the Company has developed proprietary knowledge and patented equipment and tools that are used in the manufacturing process of AFREZZA. Due to the complexities of particle formulation and the specialized knowledge and equipment needed to handle the AFREZZA powder, neither Sanofi nor any third-party contract manufacturing organization currently possesses the capability of manufacturing AFREZZA.

In order for revenue to be recognized, the seller’s price to the buyer must be fixed and determinable. Given that as of March 31, 2016 the Company did not have the ability to estimate the amount of costs that would potentially be incurred under the loss share provision related to the Sanofi License Agreement and the Sanofi Supply Agreement, the Company believes this requirement for revenue recognition has not been met. As such, the Company did not recognize any revenue pursuant to the Sanofi License Agreement or the Sanofi Supply Agreement for the three months ended March 31, 2016. The Company has recorded the $150.0 million up-front payment and $50.0 million from milestone payments as deferred payments from collaboration. In addition, as of March 31, 2016 the Company has recorded $17.7 million in AFREZZA product shipments to Sanofi recorded as deferred product sales from collaboration and recorded $13.5 million as deferred product costs from collaboration. Deferred product costs represent the costs of product manufactured and shipped to Sanofi, not to exceed the amount of deferred product sales, for which recognition of revenue has been deferred. During the quarter ended March 31, 2016, the Company’s portion of the loss sharing was $5.5 million, which resulted in the reclassification from current deferred payments from collaboration to Sanofi loan facility and loss share obligation to reflect amounts owed to Sanofi.

Sanofi Loan Facility

On September 23, 2014, the Company entered into the Sanofi Loan Facility, consisting of a senior secured revolving promissory note and a guaranty and security agreement (the “Security Agreement”) with an affiliate of Sanofi which provides the Company with a secured loan facility of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. In the event of certain future defaults under the Sanofi Loan facility agreement for which the Company is not able to obtain waivers, the lender under the Sanofi Loan Facility may accelerate all of the Company’s repayment obligations, and take control of the Company’s pledged assets, potentially requiring the Company to renegotiate the terms of its indebtedness on terms less favorable to the Company, or to immediately cease operations.

The obligations of the Company under the Sanofi Loan Facility are guaranteed by the Company’s wholly-owned subsidiary, MannKind LLC, and are secured by a first priority security interest in certain insulin inventory located in the United States and any contractual rights and obligations pursuant to which the Company purchases or has purchased such insulin, and a second priority security interest in the Company’s assets that secure the Company’s obligations under the Facility Agreement, as amended. In addition, the Company granted to Sanofi, as additional security for the obligations under the Sanofi Loan Facility, a first priority mortgage on the Company’s facility in Valencia, California, which has a carrying value of $17.7 million as of March 31, 2016.

Advances under the Sanofi Loan Facility bear interest at a rate of 8.5% per annum and are payable in-kind and compounded quarterly and added to the outstanding principal balance under the Sanofi Loan Facility. The Company is required to make mandatory prepayments on the outstanding loans under the Sanofi Loan Facility from its share of any profits (as defined in the Sanofi License Agreement) under the Sanofi License Agreement within 30 days of receipt of its share of any such profits. No advances may be made under the Sanofi Loan Agreement if Deerfield has commenced enforcement proceedings in connection with an event of default under the Facility Agreement.

The outstanding principal of all loans under the Sanofi Loan Facility, if not prepaid, will become due and payable on September 23, 2024 unless accelerated pursuant to the terms of the Sanofi Loan Facility. Additionally, if the Company sells its Valencia facility, the Company is required to prepay the loans under the Sanofi Loan Facility from the net cash proceeds of the sale within five business days of receipt. The maturity date of September 23, 2024 for repayment of the outstanding principal amount of the loans under the Sanofi Loan Facility is not affected by the termination of the Sanofi License Agreement.

The Company’s total cumulative portion of the loss sharing, including interest, was $68.8 million, of which $63.5 million was borrowed under the Sanofi Loan Facility as of March 31, 2016. Subsequent to March 31, 2016, the Company borrowed $5.3 million under the Sanofi Loan Facility to finance the portion of the Company’s loss for the quarter ended March 31, 2016. The total amount owed to Sanofi is $68.8 million, which includes $2.8 million in paid-in-kind interest capitalized as principal.

The Sanofi Loan Facility includes customary representations, warranties and covenants by the Company, including restrictions on its ability to incur additional indebtedness, grant certain liens and make certain changes to its organizational documents. Events of default under the Sanofi Loan Facility include: the Company’s failure to timely make payments due under the Sanofi Loan Facility; inaccuracies in the Company’s representations and warranties to the noteholder; the Company’s failure to comply with any of its covenants under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility, subject to a cure period with respect to most covenants; the Company’s insolvency or the occurrence of certain bankruptcy-related events; and the failure of any material provision under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility to remain in full force and effect. If one or more events of default occurs and is continuing, Sanofi may terminate its obligation to make advances under the Sanofi Loan Facility, and, if certain specified events of default (including the Company’s failure to timely make payments due under the Sanofi Loan Facility; the Company’s failure to comply with the negative covenants under the Sanofi Loan Facility limiting the Company’s ability to incur additional indebtedness or grant certain liens; the Company’s insolvency or the occurrence of certain bankruptcy-related events; or the failure of any material provision under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility to remain in full force and effect) occur and are continuing, the noteholder may accelerate all of the Company’s repayment obligations under the Sanofi Loan Facility and otherwise exercise any of its remedies as a secured creditor. There can be no assurance that the noteholder would not choose to exercise these rights in the event such events were to occur.

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Fair Value of Financial Instruments

7. Fair Value of Financial Instruments

The Company applies various valuation approaches in determining the fair value of its financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:

Level 1— Quoted prices for identical instruments in active markets.

Level 2— Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3— Significant inputs to the valuation model are unobservable.

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

Cash and cash equivalents

Cash equivalents consist of highly liquid investments with original or remaining maturities of 90 days or less at the time of purchase, that are readily convertible into cash. As of March 31, 2016 and December 31, 2015, the Company held $27.7 million and $59.1 million, respectively, of cash and cash equivalents, consisting primarily of money market funds of $26.0 million and $55.8 million, respectively, and the remaining in non-interest bearing checking accounts. The fair value of these money market funds was determined by using quoted prices for identical investments in an active market (Level 1 in the fair value hierarchy).

Related-Party Arrangement

The fair value of the note payable to our principal stockholder cannot be reasonably estimated as the Company would not be able to obtain a similar credit arrangement in the current economic environment.

2018 notes, facility financing obligation and Sanofi Loan Facility

The following is a summary of the carrying values and estimated fair values of the 2018 notes, the facility financing obligation (i.e., the 2019 notes and Tranche B notes), and the Sanofi Loan Facility (in millions):


	March 31, 2016				December 31, 2015
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
2018 notes	$	27.6	$	21.8	$	27.6	$	21.3
Facility financing obligation	$	75.0	$	79.4	$	74.6	$	78.4
Sanofi Loan Facility	$	63.5	$	48.2	$	44.5	$	36.5

2018 notes

The estimated fair value of the 2018 notes was calculated based on model-derived valuations whose inputs were observable, such as the Company’s stock price and yields on U.S. Treasury notes and actively traded bonds, and non-observable, such as the Company’s longer-term historical volatility, and estimated yields implied from any available market trades of the Company’s issued debt instruments. As there is no current active and observable market for the 2018 notes, the Company determined the estimated fair value using a convertible bond valuation model within a lattice framework. The convertible bond valuation model combined expected cash flows based on terms of the notes with market-based assumptions regarding risk-free rate, risk-adjusted yields (21%), stock price volatility (100%) and recent price quotes and trading information regarding Company issued debt instruments and shares of common stock into which the notes are convertible (Level 3 in the fair value hierarchy).

Facility Agreement

As discussed in Note 12 — Facility Agreement, in connection with the Facility Agreement, the Company issued 2019 notes and subsequently issued Tranche B notes (the “Facility Financing Obligation”). As there is no current observable market for the 2019 notes or Tranche B notes, the Company determined the estimated fair value using a bond valuation model based on a discounted cash flow methodology. The bond valuation model combined expected cash flows associated with principal repayment and interest based on the contractual terms of the debt agreement discounted to present value using a selected market discount rate. On March 31, 2016 the market discount rate was recalculated at 12.0% for the 2019 notes and 11% for the Tranche B notes, which reflected decline in the market price of benchmark U.S. Treasury securities as compared to prior measurement date (Level 3 in the fair value hierarchy).

In addition to the 2019 notes and Tranche B notes, the Company also issued certain rights to receive payments of up to $90.0 million upon occurrence of specified strategic and sales milestones (the “Milestone Rights”). These rights are not reflected in the facility financing obligation. The estimated fair value of the Milestone Rights was calculated using the income approach in which the cash flows associated with the specified contractual payments were adjusted for both the expected timing and the probability of achieving the milestones discounted to present value using a selected market discount rate (Level 3 in the fair value hierarchy). The expected timing and probability of achieving the milestones, starting in 2014, was developed with consideration given to both internal data, such as progress made to date and assessment of criteria required for achievement, and external data, such as market research studies. The discount rate (14.5%) was selected based on an estimation of required rate of returns for similar investment opportunities using available market data. As of March 31, 2016, the carrying value of the Milestone Rights is $8.9 million, classified as a long-term liability in other liabilities and the fair value is estimated at $17.7 million.

Sanofi Loan Facility

As discussed in Note 6 — the Sanofi Loan Facility, consists of a senior secured revolving promissory note and a guaranty and security agreement with an affiliate of Sanofi which provides the Company with a secured loan facility of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. The estimated fair value was determined using a discounted cash flow model in which time outstanding and discount rate were primary variables. This method considered the key elements of the contractual terms of the Sanofi Loan Facility, market-based estimated cost of capital, and time value of money, namely the amount of time to settlement and the estimated discount rate (11%) appropriate for the liability (Level 3 in the fair value hierarchy). As of March 31, 2016 the carrying value of the Sanofi Loan Facility is $63.5 million and the fair value is estimated at $48.2 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accounting for stock-based compensation

3 Months Ended

Mar. 31, 2016

Accounting for stock-based compensation

8. Accounting for stock-based compensation

Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 was as follows (in thousands):


	Three months ended March 31,
	2016		2015
Stock-based compensation	$	1,273	$	2,003

During the three months ended March 31, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 2,364,200 restricted stock units and 4,920,267 stock options issued was $2,175,064 and $2,988,418, respectively, with a grant date fair value per share of $0.92 and $0.61, respectively.

As of March 31, 2016, there was $5.7 million and $7.4 million of unrecognized compensation cost related to options and restricted stock units, respectively, which are expected to be recognized over the remaining weighted average vesting period of 3.0 years.

Net loss per common share

3 Months Ended

Mar. 31, 2016

Net loss per common share

9. Net loss per common share

Basic net loss per share excludes dilution for potentially dilutive securities and is computed by dividing net loss by the weighted average number of common shares outstanding during the period excluding the 9,000,000 shares loaned to Bank of America under a share lending arrangement for the period ended March 31, 2015. In the third quarter of 2015, the 9,000,000 shares loaned to Bank of America were returned and therefore do not impact the first quarter of 2016. Prior to the return of those shares, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share because the share borrower had to return all borrowed shares to the Company (or, in certain circumstances, the cash value thereof).

Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes, are not included in the diluted net loss per share calculation and excluded the 9,000,000 shares of the Company’s common stock loaned under the share lending arrangement.

On February 8, 2016, all unexercised warrants related to the February 2012 public offering expired. The only remaining warrants outstanding relate to those issued to the Company’s placement agent in exchange for services related to the Company’s offering on November 9, 2015 for selected investment funds in Israel.

Potentially dilutive securities outstanding are summarized as follows (in shares):


	March 31,
	2016		2015
Exercise of common stock options		24,102,471		21,615,264
Vesting of restricted stock units		3,946,007		2,647,020
Exercise of common stock warrants		159,303		6,200,721
Conversion of senior convertible notes into common stock		4,072,809		14,708,590

		32,280,590		45,171,595

Commitments and contingencies

3 Months Ended

Mar. 31, 2016

Commitments and contingencies

10. Commitments and contingencies

Guarantees and Indemnifications — In the ordinary course of its business, the Company makes certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. The Company, as permitted under Delaware law and in accordance with its Bylaws, indemnifies its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, the Company has a director and officer insurance policy that may enable it to recover a portion of any future amounts paid. The Company believes the fair value of these indemnification agreements is minimal. The Company has not recorded any liability for these indemnities in the accompanying condensed consolidated balance sheets. However, the Company accrues for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable and the amount can be reasonably estimated. No such losses have been recorded to date.

Litigation — The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of March 31, 2016, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flows of the Company and no accrual has been recorded. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations. In accordance with ASC 450 Contingencies, the Company records a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company’s policy is to accrue for legal expenses in connection with legal proceedings and claims as they are incurred.

Following the public announcement of Sanofies election to terminate the Sanofi License Agreement and the subsequent decline in the Company’s stock price, several complaints were filed in the U.S. District Court for the Central District of California (the “District Court”) against the Company and certain of its officers and directors on behalf of certain purchasers of its common stock. The complaints include claims asserted under Sections 10(b) and 20(a) of the Exchange Act and have been pled as putative shareholder class actions. In general, the complaints allege that the Company and certain of its officers and directors violated federal securities laws by making materially false and misleading statements regarding the prospects for AFREZZA, thereby artificially inflating the price of its common stock. The plaintiffs are seeking monetary damages and other relief. On April 29, 2016, two putative shareholders filed a Joint Stipulation with the District Court seeking an order consolidating the actions for all purposes, appointing them co-lead plaintiffs, and approving their selection of lead counsel. The Company will vigorously defend against the claims advanced.

Following the public announcement of Sanofies election to terminate the Sanofi License Agreement and the subsequent decline in the Company’s stock price, two motions were submitted to the district court at Tel Aviv (Economic Department) for the certification of a class action against the Company and certain of its officers and directors. In general, the complaints allege that the Company and certain of its officers and directors violated Israeli and U.S. securities laws by making materially false and misleading statements regarding the prospects for AFREZZA, thereby artificially inflating the price of its common stock. The plaintiffs are seeking monetary damages. The Company will vigorously defend against the claims advanced.

On March 10, 2016, a shareholder derivative complaint, captioned Hoang Dao v. Matthew Pfeffer, et al., Case No. BC613361, was filed in the Superior Court for the State of California, County of Los Angeles against certain of the Company’s directors and officers. The complaint alleges breaches of fiduciary duties by the defendants and other violations of law. Among other allegations, the complaint alleges that the defendants caused the Company to make false and misleading statements or omissions of material fact regarding the Company’s business and the prospects for sales of Afrezza, thereby artificially inflating the price of the Company’s common stock. The plaintiff is seeking unspecified monetary damages and other relief, including reforms to the Company’s corporate governance and internal procedures. The Company has not yet been served with the complaint and summons in this matter.

Contingencies — In connection with the Facility Agreement, on July 1, 2013 the Company also entered into a Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (collectively, the “Milestone Purchasers”), pursuant to which the Company sold the Milestone Purchasers the Milestone Rights to receive payments up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product in the United States and the achievement of specified net sales figures (see Note 12 – Facility Agreement).

Commitments — On July 31, 2014, the Company entered into a supply agreement (the “Insulin Supply Agreement”) with Amphastar France Pharmaceuticals S.A.S., a French corporation (“Amphastar”), pursuant to which Amphastar manufactures for and supplies to the Company certain quantities of recombinant human insulin for use in AFREZZA. Under the terms of the Insulin Supply Agreement, Amphastar is responsible for manufacturing the insulin in accordance with the Company’s specifications and agreed-upon quality standards. The Company has agreed to purchase annual minimum quantities of insulin for calendar years 2015 through 2019 under the Insulin Supply Agreement of an aggregate total of approximately €120.1 million, of which €98.5 million is remaining at March 31, 2016. The Company has contracted for the purchase of €28.8 million in 2016 and the remaining annual minimum quantities will be €23.3 million for the years ending December 31, 2017 through 2019. The Company may request to purchase additional quantities of insulin over such annual minimum quantities and will incur a cancellation fee of approximately $5.2 million if not purchased (see Note 2 — Summary of Significant accounting policies). Based on our purchase commitments outstanding in foreign currency at March 31. 2016, the Company incurred a loss on foreign currency exchange of $2.4 million for the quarter ended.

Unless earlier terminated, the term of the Insulin Supply Agreement expires on December 31, 2019 and can be renewed for additional, successive two year terms upon 12 months’ written notice given prior to the end of the initial term or any additional two year term. The Company and Amphastar each have normal and customary termination rights, including termination for material breach that is not cured within a specific time frame or in the event of liquidation, bankruptcy or insolvency of the other party. In addition, the Company may terminate the Insulin Supply Agreement upon two years’ prior written notice to Amphastar without cause or upon 30 days’ prior written notice to Amphastar if a controlling regulatory authority withdraws approval for AFREZZA, provided, however, in the event of a termination pursuant to either of the latter two scenarios, the provisions of the Insulin Supply Agreement require the Company to pay the full amount of all unpaid purchase commitments due over the initial term within 60 calendar days of the effective date of such termination.

Under the terms of the Sanofi Supply Agreement, in the event that Sanofi terminates the Sanofi License Agreement for various reasons (including the reasons cited in its notice of termination to the Company), then upon written notice from the Company within 30 days following the termination date, Sanofi is obligated to purchase up to $50 million of the Company’s insulin inventory as a percentage of each lot received or receivable by the Company (the “Insulin Put”). On April 14, 2016, the Company provided Sanofi with written notice that it was exercising the Insulin Put. The Company and Sanofi are currently discussing the schedule of purchases and deliveries pursuant to the Insulin Put.

Income taxes

3 Months Ended

Mar. 31, 2016

Income taxes

11. Income taxes

As required by ASC 740 Income Taxes (“ASC 740”), management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and concluded, in accordance with the applicable accounting standards, that net deferred tax assets should be fully reserved.

ASC 740-10-25 Income Taxes Recognition clarifies the accounting and disclosure for uncertainty in tax positions, as defined. This guidance seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to this guidance. Tax years since 1993 remain subject to examination by the major tax jurisdictions in which the Company is subject to tax.

Accounting Standard Update 2015-17, Balance Sheet Classification of Deferred Taxes requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. As permitted by the standard, we adopted the new presentation and the adoption did not have an impact on our consolidated financial statements and disclosures.

Facility Agreement

3 Months Ended

Mar. 31, 2016

Facility Agreement

12. Facility Agreement

As of March 31, 2016, there were $60.0 million principal amount of 2019 notes and $20.0 million principal amount of Tranche B notes outstanding. The 2019 notes accrue interest at annual rate of 9.75% and the Tranche B notes accrue interest at an annual rate of 8.75%. The Facility Agreement principal repayment schedule is comprised of annual payments beginning on July 1, 2016 and ending December 9, 2019. The repayment dates correspond to the dates on which the 2019 notes or Tranche B notes, as applicable, were issued.

In conjunction with the Facility Agreement, the Company entered into a Milestone Rights Agreement with Deerfield which requires the Company to make contingent payments to Deerfield, totaling up to $90.0 million, upon the Company achieving specified commercialization milestones. The Milestone Rights were initially recorded as a short-term liability equal to $3.2 million included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet and a long-term liability equal to $13.1 million included in other liabilities. As of March 31, 2016, the remaining liability balance of $8.9 million is classified as long-term liability in other liabilities.

Accretion of debt issuance cost and debt discount in connection with the Facility financing agreement during the three months ended March 31, 2016 and 2015 are as follows (in thousands):


	Three months ended March 31, 2016		Three months ended March 31, 2015
Accretion expense- debt issuance cost	$	9	$	9
Accretion expense- debt discount	$	419	$	364

The Facility Agreement contains a financial covenant that requires the Company’s cash and cash equivalents, which include available borrowings under the Loan Arrangement, on the last day of each fiscal quarter to not be less than $25.0 million. The Company will need to raise additional capital to support its current operating plans. Due to the uncertainties related to maintaining sufficient resources to comply with the aforementioned covenant, the 2019 notes have been classified as current liabilities in the accompanying balance sheet as of March 31, 2016. In the event of non-compliance, Deerfield may declare all or any portion of the 2019 notes and/or Tranche B notes to be immediately due and payable.

Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events

13. Subsequent Events

On April 26, 2016, MannKind Corporation (the “Company”) entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with FBR Capital Markets & Co. (“FBR”), pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time through FBR as its sales agent. The Company is not obligated to make any sales of common stock under the Sales Agreement.

The issuance and sale of the common stock by the Company under the Sales Agreement, if any, is subject to the continuing effectiveness of the Company’s registration statement on Form S-3 (File No. 333-210792), filed with the Securities and Exchange Commission on April 18, 2016 (the “Registration Statement”). The Registration Statement became effective on April 27, 2016.

FBR may sell the common stock by any method that is deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including sales made directly on or through The NASDAQ Global Market or to or through a market maker. FBR may also sell the common stock in negotiated transactions, subject to our approval. Subject to the terms and conditions of the Sales Agreement, FBR will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the common stock from time to time, based upon the Company’s instructions (including any price, time or size limits or other customary parameters or conditions the Company may impose).

Unless earlier terminated as provided below, the Sales Agreement will automatically terminate upon the earlier of (1) the sale of all common stock subject to the Sales Agreement and (2) April 26, 2019. The Sales Agreement may be terminated by the Company or FBR at any time upon 10 days’ notice to the other party, or by FBR at any time in certain circumstances, including the occurrence of a material adverse change in the Company.

The Company will pay FBR an aggregate commission rate equal to up to 3.0% of the gross proceeds of the sales price per share for common stock sold through FBR under the Sales Agreement. The Company has also provided FBR with customary indemnification rights and expense reimbursements for up to $25,000 of expenses.

Description of business and basis of presentation (Policies)	3 Months Ended
	Mar. 31, 2016
Business	*Business —* MannKind is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases such as diabetes. Our only approved product, AFREZZA (insulin human [rDNA origin]) inhalation powder, is a rapid-acting inhaled insulin that was approved by the U.S. Food and Drug Administration (the “FDA”) on June 27, 2014 to improve glycemic control in adult patients with diabetes
Basis of Presentation	*Basis of Presentation* — The Company’s primary activities since incorporation have been establishing its facilities, recruiting personnel, conducting research and development, business development, business and financial planning, raising capital and commercial manufacturing. It is costly to develop therapeutic products and conduct clinical studies for these products. As of March 31, 2016, the Company had an accumulated deficit of $2.9 billion and has reported negative cash flow from operations since inception, other than for the nine months ended September 30, 2014, the year ended December 31, 2014, and for the three months ended March 31, 2015, as a result of receipt of the upfront payment and milestone payments from Sanofi-Aventis U.S. LLC (“Sanofi”). At March 31, 2016, the Company’s capital resources consisted of cash and cash equivalents of $27.7 million. The Company expects to continue to incur significant expenditures to support commercial manufacturing and sales and marketing of AFREZZA and the development of other product candidates. The facility agreement (the “Facility Agreement”) with Deerfield Private Design Fund II, L.P. (“Deerfield Private Design Fund”) and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) and the First Amendment to Facility Agreement and Registration Rights Agreement (the “First Amendment”) that resulted in additional sales of an additional tranche of notes (the “Tranche B notes”) (see Note 12 — Facility Agreement) requires the Company to maintain at least $25.0 million in cash and cash equivalents or available borrowings under the loan arrangement, dated as of October 2, 2007, between The Company and The Mann Group LLC (as amended, restated, or otherwise modified as of the date hereof, “The Mann Group Loan Arrangement”), as of the last day of each fiscal quarter. The Company will need to continue to incur expenses for the commercialization of AFREZZA and will need to raise additional capital to finance such activities. The Company cannot be certain that it will be able to raise additional capital on favorable terms, or at all, which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. On August 11, 2014, we executed a license and collaboration agreement (the “Sanofi License Agreement”) with Sanofi-Aventis Deutschland GmbH (which subsequently assigned its rights and obligations under the agreement to Sanofi), pursuant to which Sanofi was responsible for global commercial, regulatory and development activities for AFREZZA. The Sanofi License Agreement became effective on September 23, 2014. The Company manufactured AFREZZA at its manufacturing facility in Danbury, Connecticut to supply Sanofi’s demand for the product pursuant to a supply agreement dated August 11, 2014 (the “Sanofi Supply Agreement”). On January 4, 2016 the Company received notification from Sanofi of its election to terminate in its entirety the Sanofi License Agreement. Pursuant to a transition agreement between the Company and Sanofi, all rights to AFREZZA transferred back to the Company on April 4, 2016 to the Company. Accordingly, on April 5, 2016, the Company assumed responsibility for the worldwide development and commercialization of AFREZZA from Sanofi, in a transition designed to ensure that patients will not experience any interruption in their treatment. Under the terms of the transition agreement, Sanofi will continue to fulfill orders for AFREZZA until such time as Sanofi’s inventory of usable product is depleted or until the Company provides Sanofi written notice requesting that Sanofi cease such activities, but in any event no later than October 1, 2016. Under the Sanofi License Agreement, worldwide profits and losses, which are determined based on the difference between the net sales of AFREZZA and the costs and expenses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of AFREZZA, are shared 65% by Sanofi and 35% by the Company until Sanofi ceases to distribute AFREZZA. As a result of this loss share provision, and because the Company does not currently have the ability to estimate the amount of costs that would potentially be incurred related to the Sanofi License Agreement, the amount of up-front cash payment or milestone payments that could be recognized as revenue is not fixed or determinable. In connection with the Sanofi License Agreement, an affiliate of Sanofi provided the Company with a secured loan facility (the “Sanofi Loan Facility”) of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. Additional funding sources that are, or in certain circumstances may be, available to the Company, include approximately $30.1 million principal amount of available borrowings under The Mann Group Loan Arrangement. A portion of these available borrowings may be used to capitalize accrued interest into principal, upon mutual agreement of the parties, as it becomes due and payable under The Mann Group Loan Arrangement (see Note 4 — Related-party arrangements). The Company cannot provide assurances that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company is seeking and will need to raise additional capital, whether through a sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means, in order to continue the development and commercialization of AFREZZA and other product candidates and to support its other ongoing activities. However, the Company cannot provide assurances that such additional capital will be available on acceptable terms or at all.
Fair Value of Financial Instruments	*Fair Value of Financial Instruments —* The carrying amounts reported in the accompanying financial statements for cash and cash equivalents, accounts payable and accrued liabilities approximate their fair value due to their relatively short maturities. The fair value of the cash equivalents, note payable to related party, senior convertible notes, and the Facility Agreement are discussed in Note 7 – Fair Value of Financial Instruments.
Deferred product costs from collaboration	*Deferred product costs from collaboration —* Deferred product costs represent the costs of product manufactured and shipped to Sanofi, not to exceed the amount of deferred product sales related to the collaboration, for which recognition of revenue has been deferred. Given that the costs of inventory delivered to a customer, but for which revenue may not yet be recognized, meet both the definition and characteristics of an “asset” and the Company believes that it is probable that the amount of future revenue will exceed the amount of deferred costs (i.e., the asset would be realizable through the recognition of probable future income), the Company has elected to account for the deferred costs related to the product sold to Sanofi as an asset and carry forward to future periods until the related revenue is recognized.
Recently Issued Accounting Standards	*Recently Issued Accounting Standards —* From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by the Company as of the specified effective date. In May 2014, the FASB issued ASU 2014-09 related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. We are assessing the potential impact of the new standards on our consolidated financial statements and have not yet selected a method of adoption. In August 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company is evaluating the impact the adoption of ASU 2014-15 will have on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of ASU 2015-11 will have on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for us on January 1, 2019. The adoption of this standard is not expected to have a material impact on our financial position. The Company is evaluating the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact the adoption of ASU 2016-09 will have on its consolidated financial statements.

Property and equipment (Tables)

3 Months Ended

Mar. 31, 2016

Property and Equipment

Property and equipment — net consist of the following (dollar amounts in thousands):


	Estimated Useful Life (Years)		March 31, 2016			December 31, 2015
Land		—	$	3,435		$	3,435
Buildings		39-40		21,590			21,590
Building improvements		5-40		60,584			60,584
Machinery and equipment		3-15		67,761			68,434
Furniture, fixtures and office equipment		5-10		4,114			4,114
Computer equipment and software		3		9,519			9,519
Construction in progress				460			586

				167,463			168,262
Less accumulated depreciation and amortization				(119,430	)		(119,513	)

Property and equipment — net			$	48,033		$	48,749

Accrued expenses and other current liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities are comprised of the following (in thousands):


	March 31, 2016		December 31, 2015
Salary and related expenses	$	5,685	$	5,662
Accrued interest		199		615
Construction in progress		—		238
Other		2,193		1,414

Accrued expenses and other current liabilities	$	8,077	$	7,929

Senior convertible notes (Tables)

3 Months Ended

Mar. 31, 2016

Summary of Senior Convertible Notes

Senior convertible notes consist of the following (in thousands):


	March 31, 2016			December 31, 2015
2018 notes
Principal amount	$	27,690		$	27,690
Unamortized premium		603			660
Unaccreted debt issuance costs		(675	)		(737	)

Net carrying amount	$	27,618		$	27,613

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Summary of Carrying Values Estimated Fair Values of Notes and Facility Financing Obligation


	March 31, 2016				December 31, 2015
	Carrying value		Estimated fair value		Carrying value		Estimated fair value
2018 notes	$	27.6	$	21.8	$	27.6	$	21.3
Facility financing obligation	$	75.0	$	79.4	$	74.6	$	78.4
Sanofi Loan Facility	$	63.5	$	48.2	$	44.5	$	36.5

Accounting for stock-based compensation (Tables)

3 Months Ended

Mar. 31, 2016

Stock-Based Compensation Expense

Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three months ended March 31, 2016 and 2015 was as follows (in thousands):


	Three months ended March 31,
	2016		2015
Stock-based compensation	$	1,273	$	2,003

Net loss per common share (Tables)

3 Months Ended

Mar. 31, 2016

Potential Dilutive Securities Outstanding

Potentially dilutive securities outstanding are summarized as follows (in shares):


	March 31,
	2016		2015
Exercise of common stock options		24,102,471		21,615,264
Vesting of restricted stock units		3,946,007		2,647,020
Exercise of common stock warrants		159,303		6,200,721
Conversion of senior convertible notes into common stock		4,072,809		14,708,590

		32,280,590		45,171,595

Facility Agreement (Tables)

3 Months Ended

Mar. 31, 2016

Accretion of Debt Issuance Cost and Debt Discount

Accretion of debt issuance cost and debt discount in connection with the Facility financing agreement during the three months ended March 31, 2016 and 2015 are as follows (in thousands):


	Three months ended March 31, 2016		Three months ended March 31, 2015
Accretion expense- debt issuance cost	$	9	$	9
Accretion expense- debt discount	$	419	$	364

Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 23, 2014
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Accumulated deficit	$ (2,888,102,000)	$ (2,863,229,000)
Cash and cash equivalents	27,653,000	$ 59,074,000	$ 120,844,000	$ 120,841,000
Amount available for future borrowings	$ 30,100,000
License and Collaboration Agreement with Sanofi
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Profits and losses sharing percentage	35.00%
Maximum secured loan facility					$ 175,000,000
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Profits and losses sharing percentage	65.00%
Maximum secured loan facility	$ 175,000,000
Senior convertible notes due December 31, 2019 \| Deerfield \| Minimum \| Facility Agreement \| Less portion of commitment asset
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Available amount of credit facility under covenant restrictions	$ 25,000,000

Property and Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended
Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 167,463	$ 168,262
Less accumulated depreciation and amortization	(119,430)	(119,513)
Property and equipment - net	48,033	48,749
Land
Property, Plant and Equipment [Line Items]
Property and equipment - gross	3,435	3,435
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 21,590	21,590
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	39 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Building Improvements
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 60,584	60,584
Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Building Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 67,761	68,434
Machinery and Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Machinery and Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	15 years
Furniture, fixtures and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 4,114	4,114
Furniture, fixtures and office equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture, fixtures and office equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	10 years
Computer Equipment and Software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Property and equipment - gross	$ 9,519	9,519
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 460	$ 586

Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Depreciation and Other Amortization Expenses [Line Items]
Impairment charges allocated to individual asset groups			$ 140.4
Depreciation and amortization expense	$ 0.6	$ 2.3

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities [Line Items]
Salary and related expenses	$ 5,685	$ 5,662
Accrued interest	199	615
Construction in progress		238
Other	2,193	1,414
Accrued expenses and other current liabilities	$ 8,077	$ 7,929

Related-Party Arrangements - Additional Information (Detail)	1 Months Ended		3 Months Ended		12 Months Ended
	Oct. 31, 2013 USD ($)	Oct. 31, 2007 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($)	May 31, 2015 ft²
Related Party Transaction [Line Items]
Amount available for future borrowings			$ 30,100,000		$ 30,100,000
Additional borrowings			$ 0		$ 0
Mann Foundation \| Sublease Agreement
Related Party Transaction [Line Items]
Area of office space leased \| ft²						12,500
Lease expiration period			2017-04
Lease payment			$ 65,000	$ 0
Principal stockholder
Related Party Transaction [Line Items]
Loan agreement with related party	$ 370,000,000	$ 350,000,000
Principal stockholder \| Amended Agreement
Related Party Transaction [Line Items]
Maturity date					Jan. 05, 2020
Principal stockholder \| Loan Arrangement
Related Party Transaction [Line Items]
Principal amount outstanding under credit facility			49,500,000		$ 49,500,000
Amount available for future borrowings			$ 30,100,000		$ 30,100,000
Fixed borrowing rate			5.84%		5.84%
Interest payable			$ 7,100,000		$ 7,100,000
Related party transaction prepayment period			90 days
Aggregate principal amount cancelled			$ 105,000,000
Principal stockholder \| Loan Arrangement \| Maximum
Related Party Transaction [Line Items]
Amount prepaid for cancellation of indebtedness			$ 200,000,000
Principal stockholder \| Loan Arrangement \| Minimum
Related Party Transaction [Line Items]
Number of months advances outstanding			12 months
Related Party Debt \| Letter Agreement
Related Party Transaction [Line Items]
Description of variable rate interest			The interest rate will increase to the one-year LIBOR calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum.
Related Party Debt \| Letter Agreement \| LIBOR
Related Party Transaction [Line Items]
Interest rate (LIBOR)			5.00%

Summary of Senior Convertible Notes (Detail) - Senior convertible notes due August 15, 2018 - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Aug. 10, 2015
Debt Instrument [Line Items]
Principal amount	$ 27,690	$ 27,690	$ 27,700
Unamortized premium	603	660	$ 700
Unaccreted debt issuance costs	(675)	(737)
Net carrying amount	$ 27,618	$ 27,613

Senior Convertible Notes - Additional Information (Detail) $ / shares in Units, $ in Thousands			3 Months Ended
	Aug. 10, 2015 USD ($) d $ / shares shares	Jul. 28, 2015 USD ($)	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Deerfield
Debt Instrument [Line Items]
Premium of issuance of 2018 debt			$ 419	$ 364
2018 Notes
Debt Instrument [Line Items]
Accretion of debt issuance costs			62,000
Senior convertible notes due August 15, 2018
Debt Instrument [Line Items]
Principal amount	$ 27,700		27,690		$ 27,690
Senior notes, effective interest rate	5.75%
Unamortized premium	$ 700		$ 603		$ 660
Maturity date			Aug. 15, 2018
No of convertible shares	147.0859
Principal amount per share \| $ / shares	$ 1,000
Conversion price of shares \| $ / shares	$ 6.80
Percentage of repurchase price	100.00%
Debt Instrument, redemption description			On or after the date that is one year following the original issue date of the 2018 notes, the Company will have the right to redeem for cash all or part of the 2018 notes if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for 20 or more trading days during the 30 consecutive trading day period ending on the trading day immediately prior to the date of the redemption notice. The redemption price will equal the sum of 100% of the principal amount of the 2018 notes to be redeemed, plus accrued and unpaid interest.
Percentage of conversion price equaling stock price	130.00%
Number of trading days \| d	20
Consecutive trading days	30 days
Debt Issuance Cost		$ 800
Premium of issuance of 2018 debt			$ 57,000
Senior convertible notes due August 15, 2018 \| If certain fundamental changes occur
Debt Instrument [Line Items]
Conversion price of shares \| $ / shares	$ 6.80
Number of shares to be converted \| shares	741,100
Senior convertible notes due August 15, 2018 \| Minimum \| If certain fundamental changes occur
Debt Instrument [Line Items]
Share price on date of conversion \| $ / shares	$ 4.82
Senior convertible notes due December 31, 2019 \| Deerfield
Debt Instrument [Line Items]
Principal amount			$ 60,000
Senior notes, effective interest rate			9.75%
Senior convertible notes due December 31, 2019 \| Deerfield \| Less portion of commitment asset
Debt Instrument [Line Items]
Principal amount			$ 20,000
Senior notes, effective interest rate			8.75%

Collaborative Arrangement - Additional Information (Detail) - USD ($)			3 Months Ended
	May 09, 2016	Apr. 05, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Sep. 23, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Paid-in-kind interest			$ 1,168,000	$ 33,000
Sanofi-Aventis Deutschland GmbH
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Carrying value			63,500,000		$ 44,500,000
Sanofi-Aventis Deutschland GmbH \| Mortgage Loan
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Carrying value			$ 17,700,000
License and Collaboration Agreement with Sanofi
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage			35.00%
Maximum secured loan facility						$ 175,000,000
Senior notes, effective interest rate						8.50%
License and Collaboration Agreement with Sanofi \| Subsequent Event
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage		35.00%
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage			65.00%
Collaboration agreements expiration date			Apr. 04, 2016
Deferred revenue from collaboration product shipments			$ 150,000,000
Milestone receivable			50,000,000
Deferred cost			13,500,000
Company's total portion of loss sharing			5,500,000
Maximum secured loan facility			175,000,000
Carrying value			63,500,000
Secured loan facility, amount borrowed			63,500,000
Secured loan facility, amount owed			68,800,000
Paid-in-kind interest			2,800,000
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH \| Operating loss Sharing
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Company's total portion of loss sharing			68,800,000
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH \| AFREZZA product sales
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue from collaboration product shipments			$ 17,700,000
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH \| Subsequent Event
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage		65.00%
Secured loan facility, amount borrowed	$ 5,300,000

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 23, 2014	Jul. 01, 2013
Fair Value of Financial Instruments [Line Items]
Cash and cash equivalents	$ 27,653,000	$ 59,074,000	$ 120,844,000	$ 120,841,000
Cash equivalents, money market funds	26,000,000	55,800,000
Sanofi-Aventis Deutschland GmbH
Fair Value of Financial Instruments [Line Items]
Carrying value	63,500,000	44,500,000
Estimated fair value	48,200,000	36,500,000
Senior convertible notes due August 15, 2018
Fair Value of Financial Instruments [Line Items]
Carrying value	27,618,000	$ 27,613,000
License and Collaboration Agreement with Sanofi
Fair Value of Financial Instruments [Line Items]
Maximum secured loan facility					$ 175,000,000
License and Collaboration Agreement with Sanofi \| Sanofi-Aventis Deutschland GmbH
Fair Value of Financial Instruments [Line Items]
Maximum secured loan facility	175,000,000
Carrying value	63,500,000
Estimated fair value	48,200,000
Milestone Rights Liability \| Deerfield \| Maximum
Fair Value of Financial Instruments [Line Items]
Contingent liability for milestone payments						$ 90,000,000
Milestone Rights Liability \| Senior convertible notes due December 31, 2019 \| Deerfield
Fair Value of Financial Instruments [Line Items]
Long term liability	8,900,000					$ 13,100,000
Fair Value, Inputs, Level 3 \| Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Fair value of Milestone Rights	$ 17,700,000
Fair Value, Inputs, Level 3 \| Income Approach Valuation Technique \| Sanofi-Aventis Deutschland GmbH
Fair Value of Financial Instruments [Line Items]
Market discount rate	11.00%
Fair Value, Inputs, Level 3 \| Income Approach Valuation Technique \| Senior convertible notes due December 31, 2019
Fair Value of Financial Instruments [Line Items]
Market discount rate	12.00%
Fair Value, Inputs, Level 3 \| Income Approach Valuation Technique \| Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Market discount rate	14.50%
Fair Value, Inputs, Level 3 \| Income Approach Valuation Technique \| Less portion of commitment asset \| Senior convertible notes due December 31, 2019
Fair Value of Financial Instruments [Line Items]
Market discount rate	11.00%
Fair Value, Inputs, Level 3 \| Market Approach Valuation Technique \| Senior convertible notes due August 15, 2018 \| Convertible Debt Securities
Fair Value of Financial Instruments [Line Items]
Fair value assumption, risk-free rate	21.00%
Fair value assumption, stock price volatility	100.00%

Summary of Carrying Values Estimated Fair Values of Notes and Facility Financing Obligation and Sanofi Loan Facility (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Sanofi-Aventis Deutschland GmbH
Convertible Debt [Line Items]
Carrying value	$ 63.5	$ 44.5
Estimated fair value	48.2	36.5
Senior convertible notes due August 15, 2015 \| Convertible Debt Securities
Convertible Debt [Line Items]
Carrying value	27.6	27.6
Estimated fair value	21.8	21.3
Facility financing obligation
Convertible Debt [Line Items]
Carrying value	75.0	74.6
Estimated fair value	$ 79.4	$ 78.4

Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,273	$ 2,003

Accounting for Stock-Based Compensation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued \| shares	2,364,200
Number of stock options issued \| shares	4,920,267
Weighted average vesting period for unrecognized compensation cost	3 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based payment award , vesting period	4 years
Fair value of the stock options granted , value	$ 2,988,418
Weighted average grant date fair value of the stock options granted \| $ / shares	$ 0.61
Unrecognized compensation cost related to non vested stock options	$ 5,700,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of Restricted stock options granted , value	$ 2,175,064
Weighted average grant date fair value of the stock options granted \| $ / shares	$ 0.92
Unrecognized compensation cost related to non vested stock options	$ 7,400,000

Net Loss per Common Share - Additional Information (Detail) - shares	Mar. 31, 2016	Sep. 30, 2015
Net Income Loss Per Common Share [Line Items]
Return of loaned common stock (in shares)		9,000,000
Shares loaned under the share lending arrangement	9,000,000

Potentially Dilutive Securities Outstanding (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	32,280,590	45,171,595
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	24,102,471	21,615,264
Convertible Debt Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	4,072,809	14,708,590
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	159,303	6,200,721
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	3,946,007	2,647,020

Commitments and Contingencies - Additional Information (Detail) € in Millions		3 Months Ended
	Jul. 31, 2014 EUR (€)	Mar. 31, 2016 USD ($)	Mar. 31, 2016 EUR (€)	Jul. 01, 2013 USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment amount under Insulin Supply Agreement	€ 120.1
Purchase obligation			€ 98.5
Purchase obligation, due in 2016			28.8
Purchase obligation, due in 2017			23.3
Purchase obligation, due in 2018			23.3
Purchase obligation, due in 2019			€ 23.3
Purchase commitment cancellation fees \| $		$ 5,200,000
Foreign currency transaction loss \| $		$ 2,364,000
Supply Agreement expiration period		Dec. 31, 2019
Supply Agreement renewal period		2 years
Insulin Put
Commitments and Contingencies [Line Items]
Purchase obligation \| $		$ 50,000,000
Deerfield \| Milestone Rights Liability \| Maximum
Commitments and Contingencies [Line Items]
Contingent liability for milestone payments \| $				$ 90,000,000

Facility Agreement - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Jul. 01, 2013
Debt Instrument [Line Items]
Short term liability	$ 75,010,000	$ 74,582,000
Deerfield
Debt Instrument [Line Items]
Principal repayment schedule, start date	Jul. 01, 2016
Principal repayment schedule, end date	Dec. 09, 2019
Deerfield \| Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Debt facility principal amount	$ 60,000,000
Senior notes, effective interest rate	9.75%
Deerfield \| Less portion of commitment asset \| Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Debt facility principal amount	$ 20,000,000
Senior notes, effective interest rate	8.75%
Deerfield \| Less portion of commitment asset \| Minimum \| Senior convertible notes due December 31, 2019 \| Facility Agreement
Debt Instrument [Line Items]
Available amount of credit facility under covenant restrictions	$ 25,000,000
Deerfield \| Milestone Rights Liability \| Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Short term liability	8,900,000		$ 3,200,000
Long term liability	$ 8,900,000		13,100,000
Deerfield \| Milestone Rights Liability \| Maximum
Debt Instrument [Line Items]
Contingent liability for milestone payments			$ 90,000,000

Accretion of Debt Issuance Cost and Debt Discount in Connection with Facility Financing Agreement (Detail) - Deerfield - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Debt Instrument [Line Items]
Accretion expense- debt issuance cost	$ 9	$ 9
Accretion expense- debt discount	$ 419	$ 364

Subsequent Event - Additional Information (Detail) - Subsequent Event	Apr. 26, 2016 USD ($) shares
Subsequent Event [Line Items]
Aggregate commission rate	3.00%
FBR Capital Markets and Company \| Maximum
Subsequent Event [Line Items]
Customary indemnification rights and expense reimbursements	$ 25,000
Sales Agreement \| FBR Capital Markets and Company
Subsequent Event [Line Items]
Common stock value authorized under sales agreement	$ 50,000,000
Number of common stock issued \| shares	0