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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 31, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	MNKD
Entity Registrant Name	MANNKIND CORP
Entity Central Index Key	0000899460
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity File Number	000-50865
Entity Tax Identification Number	13-3607736
Entity Address, Address Line One	30930 Russell Ranch Road
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Westlake Village
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91362
City Area Code	(818)
Local Phone Number	661-5000
Entity Common Stock, Shares Outstanding		206,408,240
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 30,173	$ 71,157
Restricted cash	316	527
Short-term investments	19,885
Accounts receivable, net	4,093	4,017
Inventory	3,692	3,597
Prepaid expenses and other current assets	3,584	2,556
Total current assets	61,743	81,854
Property and equipment, net	27,126	25,602
Right-of-use and other assets	6,271	249
Total assets	95,140	107,705
Current liabilities:
Accounts payable	11,664	5,379
Accrued expenses and other current liabilities	14,298	15,022
Facility financing obligation		11,298
Senior convertible notes - current	2,520
Deferred revenue - current	32,212	36,885
Recognized loss on purchase commitments - current	3,593	6,657
Total current liabilities	64,287	75,241
Senior convertible notes	7,437	19,099
Credit facility	38,798
Promissory notes	70,019	72,089
Accrued interest - promissory notes	807	6,835
Recognized loss on purchase commitments - long term	85,858	91,642
Deferred revenue - long term	2,631	10,680
Milestone rights liability	7,263	7,201
Operating lease liabilities	2,746
Total liabilities	279,846	282,787
Commitments and contingencies
Stockholders' deficit:
Common stock, $0.01 par value - 280,000,000 shares authorized, 206,407,551 and 187,029,967 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	2,064	1,870
Additional paid-in capital	2,790,890	2,763,067
Accumulated other comprehensive loss	(20)	(19)
Accumulated deficit	(2,977,640)	(2,940,000)
Total stockholders' deficit	(184,706)	(175,082)
Total liabilities and stockholders' deficit	$ 95,140	$ 107,705

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Total revenues	$ 14,595	$ 4,469	$ 47,045	$ 11,827
Expenses:
Cost of goods sold	7,099	5,303	15,446	14,406
Research and development	1,580	2,043	4,879	7,653
Selling, general and administrative	16,666	19,394	58,948	61,740
Gain on foreign currency translation	(3,807)	(728)	(4,495)	(3,107)
Total expenses	23,374	26,012	80,290	80,692
Loss from operations	(8,779)	(21,543)	(33,245)	(68,865)
Other (expense) income:
Interest income	220	144	794	305
Interest expense on notes	(4,126)	(993)	(5,283)	(4,496)
Interest expense on promissory notes	(1,162)	(1,074)	(3,351)	(3,234)
Gain (loss) on extinguishment of debt	3,529	(712)	3,529	(765)
Other income (expense)	(52)	10	(84)	71
Total other expense	(1,591)	(2,625)	(4,395)	(8,119)
Loss before provision for income taxes	(10,370)	(24,168)	(37,640)	(76,984)
Provision for income taxes				(240)
Net loss	$ (10,370)	$ (24,168)	$ (37,640)	$ (77,224)
Net loss per share - basic and diluted	$ (0.05)	$ (0.16)	$ (0.20)	$ (0.56)
Shares used to compute basic and diluted net loss per share	199,906	153,597	191,786	138,307
Commercial product sales
Revenues:
Total revenues	$ 6,402	$ 4,387	$ 17,543	$ 11,542
Collaborations and services
Revenues:
Total revenues	8,193	$ 82	29,502	232
Expenses:
Cost of revenue	$ 1,836		$ 5,512
Revenue - other
Revenues:
Total revenues				$ 53

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	At-the-market Offering	Facility Financing Obligation	Related Party Notes	Senior Convertible Notes	Promissory Notes	Common Stock	Common Stock At-the-market Offering	Common Stock Facility Financing Obligation	Common Stock Related Party Notes	Common Stock Senior Convertible Notes	Common Stock Promissory Notes	Additional Paid-in Capital	Additional Paid-in Capital At-the-market Offering	Additional Paid-in Capital Facility Financing Obligation	Additional Paid-in Capital Related Party Notes	Additional Paid-in Capital Senior Convertible Notes	Additional Paid-in Capital Promissory Notes	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balance at Dec. 31, 2017	$ (214,733)						$ 1,191						$ 2,638,992						$ (18)	$ (2,854,898)
Beginning Balance (in shares) at Dec. 31, 2017							119,053
Adjustment to adopt ASU 2016-09 \| Topic 718	1,873																			1,873
Issuance of common stock from the release of restricted stock units	(81)						$ 1						(82)
Issuance of common stock from the release of restricted stock units (in shares)							60
Issuance of common stock under Employee Stock Purchase Plan	1						$ 1
Issuance of common stock under Employee Stock Purchase Plan (in shares)							137
Stock-based compensation expense	1,943												1,943
Issuance of common stock pursuant to conversion notes			$ 9,407	$ 8,160					$ 35	$ 30					$ 9,372	$ 8,130
Issuance of common stock pursuant to conversion notes (in shares)									3,549	3,000
Cumulative translation gain (loss)	3																		3
Amortization of shelf fees	(5)												(5)
Issuance of common stock in at-the-market offering		$ 634						$ 2						$ 632
Issuance of common stock in at-the-market offering (in shares)								214
Issuance costs associated with at-the-market offering	(25)												(25)
Net loss	(30,385)																			(30,385)
Ending Balance at Mar. 31, 2018	(223,208)						$ 1,260						2,658,957						(15)	(2,883,410)
Ending Balance (in shares) at Mar. 31, 2018							126,013
Beginning Balance at Dec. 31, 2017	(214,733)						$ 1,191						2,638,992						(18)	(2,854,898)
Beginning Balance (in shares) at Dec. 31, 2017							119,053
Cumulative translation gain (loss)	(1)
Ending Balance at Sep. 30, 2018	(205,441)						$ 1,594						2,723,232						(18)	(2,930,249)
Ending Balance (in shares) at Sep. 30, 2018							159,497
Beginning Balance at Mar. 31, 2018	(223,208)						$ 1,260						2,658,957						(15)	(2,883,410)
Beginning Balance (in shares) at Mar. 31, 2018							126,013
Issuance of common stock from the release of restricted stock units	(104)						$ 1						(105)
Issuance of common stock from the release of restricted stock units (in shares)							108
Exercise of stock options	2												2
Exercise of stock options (in shares)							3
Stock-based compensation expense	2,209												2,209
Issuance of common stock pursuant to conversion notes			6,000		$ 4,442				$ 31		$ 22				5,969		$ 4,420
Issuance of common stock pursuant to conversion notes (in shares)									3,061		2,250
Cumulative translation gain (loss)	(3)																		(3)
Amortization of shelf fees	(7)												(7)
Issuance of common stock under Market Price Stock Purchase Plan	335						$ 2						333
Issuance of shares under Market Price Stock Purchase Plan (in shares)							184
Issuance of common stock in direct placement	27,860												27,860
Issuance costs associated with direct placement	(1,470)						$ 140						(1,610)
Issuance costs associated with direct placement (in shares)							14,000
Net loss	(22,675)																			(22,675)
Ending Balance at Jun. 30, 2018	(206,619)						$ 1,456						2,698,028						(18)	(2,906,085)
Ending Balance (in shares) at Jun. 30, 2018							145,619
Issuance of common stock from the release of restricted stock units (in shares)							20
Exercise of stock options	2												2
Exercise of stock options (in shares)							2
Issuance of common stock under Employee Stock Purchase Plan	343						$ 2						341
Issuance of common stock under Employee Stock Purchase Plan (in shares)							263
Stock-based compensation expense	1,562												1,562
Issuance of common stock pursuant to conversion notes			22,721		538				$ 131		$ 5				22,590		533
Issuance of common stock pursuant to conversion notes (in shares)									13,117		476
Issuance of common stock in at-the-market offering		183												183
Issuance costs associated with at-the-market offering	(7)												(7)
Net loss	(24,164)																			(24,164)
Ending Balance at Sep. 30, 2018	(205,441)						$ 1,594						2,723,232						(18)	(2,930,249)
Ending Balance (in shares) at Sep. 30, 2018							159,497
Beginning Balance at Dec. 31, 2018	(175,082)						$ 1,870						2,763,067						(19)	(2,940,000)
Beginning Balance (in shares) at Dec. 31, 2018							187,030
Issuance of common stock from the release of restricted stock units	(1)						$ 1						(2)
Issuance of common stock from the release of restricted stock units (in shares)							63
Exercise of stock options	3												3
Exercise of stock options (in shares)							3
Issuance of common stock under Employee Stock Purchase Plan	317						$ 3						314
Issuance of common stock under Employee Stock Purchase Plan (in shares)							296
Stock-based compensation expense	1,104												1,104
Issuance of common stock pursuant to conversion notes					538						$ 4						534
Issuance of common stock pursuant to conversion notes (in shares)											386
Net loss	(14,883)																			(14,883)
Ending Balance at Mar. 31, 2019	(188,004)						$ 1,878						2,765,020						(19)	(2,954,883)
Ending Balance (in shares) at Mar. 31, 2019							187,778
Beginning Balance at Dec. 31, 2018	(175,082)						$ 1,870						2,763,067						(19)	(2,940,000)
Beginning Balance (in shares) at Dec. 31, 2018							187,030
Cumulative translation gain (loss)	(1)
Ending Balance at Sep. 30, 2019	(184,706)						$ 2,064						2,790,890						(20)	(2,977,640)
Ending Balance (in shares) at Sep. 30, 2019							206,408
Beginning Balance at Mar. 31, 2019	(188,004)						$ 1,878						2,765,020						(19)	(2,954,883)
Beginning Balance (in shares) at Mar. 31, 2019							187,778
Issuance of common stock from the release of restricted stock units							$ 1						(1)
Issuance of common stock from the release of restricted stock units (in shares)							87
Exercise of stock options	15												15
Exercise of stock options (in shares)							14
Stock-based compensation expense	2,568												2,568
Issuance of common stock in at-the-market offering		1,850						$ 15						1,835
Issuance of common stock in at-the-market offering (in shares)								1,568
Issuance costs associated with at-the-market offering	(41)												(41)
Net loss	(12,387)																			(12,387)
Ending Balance at Jun. 30, 2019	(195,999)						$ 1,894						2,769,396						(19)	(2,967,270)
Ending Balance (in shares) at Jun. 30, 2019							189,447
Issuance of common stock from the release of restricted stock units							$ 6						(6)
Issuance of common stock from the release of restricted stock units (in shares)							547
Exercise of stock options	31												31
Exercise of stock options (in shares)							29
Issuance of common stock under Employee Stock Purchase Plan	339						$ 4						335
Issuance of common stock under Employee Stock Purchase Plan (in shares)							356
Stock-based compensation expense	1,640												1,640
Issuance of common stock pursuant to conversion notes			$ 4,575		$ 5,037	$ 8,000			$ 42		$ 45	$ 71			$ 4,533		$ 4,992	$ 7,929
Issuance of common stock pursuant to conversion notes (in shares)									4,193		4,525	7,143
Cumulative translation gain (loss)	(1)
Issuance of common stock in at-the-market offering		$ 188						$ 2						$ 186
Issuance of common stock in at-the-market offering (in shares)								168
Issuance of warrants pursuant to Credit facility	1,854												1,854
Net loss	(10,371)																		(1)	(10,370)
Ending Balance at Sep. 30, 2019	$ (184,706)						$ 2,064						$ 2,790,890						$ (20)	$ (2,977,640)
Ending Balance (in shares) at Sep. 30, 2019							206,408

Condensed Consolidated Statements of Cash Flows	9 Months Ended
Condensed Consolidated Statements of Cash Flows	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (37,640,000)	$ (77,224,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, amortization and accretion	407,000	2,489,000
Amortization of right-of-use assets	903,000
Stock-based compensation expense	5,312,000	5,715,000
(Gain) loss on extinguishment of debt	(3,529,000)	765,000
Gain on sale, abandonment/disposal or impairment of property and equipment		(10,000)
Gain on foreign currency translation	(4,495,000)	(3,107,000)
Interest expense on promissory notes	3,517,000	3,345,000
Write-off of inventory	0	1,792,000
Payment-in-kind interest on promissory notes	(32,822,000)
Other, net	103,000	106,000
Changes in operating assets and liabilities:
Accounts receivable, net	(76,000)	(74,000)
Inventory	(95,000)	(1,920,000)
Prepaid expenses and other current assets	(1,028,000)	(5,000)
Right-of-use and other assets	(356,000)	200,000
Accounts payable	6,282,000	(1,169,000)
Accrued expenses and other current liabilities	(134,000)	560,000
Deferred revenue	(12,721,000)	11,983,000
Recognized loss on purchase commitments	(4,395,000)	(6,165,000)
Operating lease liabilities	(1,064,000)
Accrued interest - promissory notes	(1,545,000)
Net cash used in operating activities	(83,376,000)	(62,719,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of limited liability company ownership interest	(300,000)
Proceeds from sale of property and equipment		10,000
Purchase of property and equipment	(2,456,000)
Proceeds from sale of treasury bills	24,995,000
Purchase of treasury bills	(44,880,000)
Net cash used in investing activities	(22,641,000)	10,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Exercise of stock options	50,000
Principal payments on facility financing obligation	(6,920,000)	(2,000,000)
Proceeds of senior convertible notes	9,910,000
Payment of senior convertible notes	(11,081,000)
Proceeds from Midcap credit facility	40,000,000
Issuance cost associated with Midcap credit facility	(886,000)
Proceeds from promissory notes	70,051,000
Issuance cost associated with promissory notes	(33,000)
Principal payments on promissory notes	(38,264,000)
Proceeds from direct placement of common stock		28,000,000
Issuance cost associated with direct placement		(1,610,000)
Payment of employment taxes related to vested restricted stock units		(184,000)
Proceeds from executive stock purchase plan		335,000
Net cash (used) provided by financing activities	64,822,000	25,327,000
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(41,195,000)	(37,382,000)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	71,684,000	48,355,000
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	30,489,000	10,973,000
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
Interest paid in cash, net of amounts capitalized		2,895,000
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Property and equipment in progress in accounts payable	203,000
Addition of right-of-use assets upon adoption of new lease guidance	5,192,000
Payment of senior convertible notes through common stock issuance	4,500,000
Principal and interest payments on promissory notes through common stock issuance	8,000,000	8,160,000
Payment of interest on senior convertible notes through common stock issuance	1,075,000
Common stock issuance to settle employee stock purchase plan liability	656,000
Payment of facility obligation through common stock issuance	4,575,000
Payment of note obligations through common stock issuance		42,912,000
Accrued but unpaid debt issuance costs		146,000
At The Market Issuance
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock pursuant to at-the-market offering	2,042,000	819,000
Issuance cost associated with in at-the-market offering	$ (47,000)	$ (33,000)

Description of Business and Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Description of Business and Significant Accounting Policies

1. Description of Business and Significant Accounting Policies

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, 2018 filed with the SEC on February 26, 2019 (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 and nine months ended September 30, 2019 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. Management considers many factors in selecting appropriate financial accounting policies, and in developing the estimates and assumptions that are used in the preparation of the financial statements. Management must apply significant judgment in this process. The more significant estimates reflected in these accompanying condensed consolidated financial statements include revenue recognition and gross-to-net adjustments, assessing long-lived assets for impairment, inventory costing and recoverability, recognized loss on purchase commitments, milestone rights liability, stock-based compensation and the determination of the provision for income taxes and corresponding deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets.

Business — The Company is a biopharmaceutical company focused on the development and commercialization of inhaled therapeutic products for diseases such as diabetes and pulmonary arterial hypertension. The Company’s only approved product, Afrezza (insulin human) Inhalation Powder, is a rapid-acting inhaled insulin that was approved by the U.S. Food and Drug Administration (the “FDA”) in June 2014 to improve glycemic control in adults with diabetes. Afrezza became available by prescription in United States retail pharmacies in February 2015. Currently, the Company promotes Afrezza to endocrinologists and certain high-prescribing primary care physicians in the United States through its specialty sales force.

Basis of Presentation - The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company is not currently profitable and has rarely generated positive net cash flows from operations. In addition, the Company expects to continue to incur significant expenditures for the foreseeable future in support of its manufacturing operations, sales and marketing costs for Afrezza, and collaboration and development costs for product candidates in the Company’s pipeline. As a result, the Company had an accumulated deficit of $3.0 billion, $120.1 million of total principal amount of outstanding borrowings, and limited capital resources of $30.2 million in cash and cash equivalents and $19.9 million in short-term investments as of September 30, 2019. These financial conditions raise substantial doubt about the Company’s ability to continue as a going concern.

In August 2019, the Company and MannKind LLC entered into a credit and security agreement with MidCap Financial Trust (the “MidCap Credit Facility” or “Credit Facility”) to recapitalize its debt structure (the “recapitalization”) (Refer to Note 7 – Borrowings for further details). The Credit Facility is comprised of a $75.0 million senior secured credit facility, of which $40.0 million was outstanding as of September 30, 2019 and the remaining $35.0 million will become available under the following conditions: (1) $10.0 million will be made available through April 15, 2020 if the Company’s trailing 12 month Afrezza product net revenue is equal to or greater than $30.0 million and (2) the remaining $25.0 million will be made available through June 30, 2021 upon the satisfaction of certain milestones associated with the Company’s license agreement with United Therapeutics (see Note 8 – Collaborations and Licensing Arrangements).

Principal payments on the Credit Facility begin in September 2021. In addition, the MidCap Credit Facility contains certain covenants, one of which includes a requirement to maintain a minimum of $15.0 million of unrestricted cash and cash equivalents. This amount will increase to $20 million if the Company draws the aforementioned additional funding that may be made available.

As part of the recapitalization, the Company converted shares of common stock, made repayments on outstanding borrowings, and used some of the proceeds from the MidCap Credit Facility proceeds to:

1)	Fully repay the remaining $5.0 million due on its financing facility with Deerfield Private Design Fund II L.P. and Deerfield Private Design International I L.P.,

Pay down the Company’s obligation to The Mann Group (including accrued interest) by $11.0 million and restructure the remaining $70.1 million of debt into two notes, extending maturity dates and principal repayment requirements from July 2021 to November 2024. One note in the amount of $35.1 million is convertible into MannKind common stock at $2.50 per share. Interest can be paid in kind or in MannKind common stock.

Reduce the Senior Convertible Notes due 2021 by $8.5 million and restructure the remaining $10.2 million to $2.6 million due June 2020, $2.6 million due December 2020 and $5.0 million due November 2024. The $5.0 million due in November 2024 can be converted in MannKind common stock at $3.00 per share. Interest can be paid in MannKind common stock or in cash.

The Company’s capital resources may not be sufficient to continue to meet its current and anticipated obligations over the next twelve months if the Company cannot increase its operating cash inflows by growing its prescription and revenue base and/or obtain access to the remaining $35.0 million borrowings that may become available under its Credit Facility. In the event these capital resources are not sufficient, the Company may need to raise additional capital through the sale of equity or debt securities, enter into strategic business collaboration agreements with other companies, seek other funding facilities, seek other licensing arrangements, sell assets and/or other means. However, the Company cannot provide assurances that additional capital will be available on acceptable terms or at all.

If the Company is unable to meet its current and anticipated obligations over the next twelve months through its existing capital resources, or obtain new sources of capital when needed, the Company may have to delay, reduce the scope of its manufacturing operations, reduce or eliminate one or more of its development programs, make significant changes to its operating plan. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Principles of Consolidation – The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated.

Segment Information – Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and manages its business as one segment operating in the United States of America.

Revenue Recognition — The Company adopted Accounting Standards Codification (“ASC”) Topic 606 - Revenue from Contracts with Customers (“the new revenue guidance”), on January 1, 2018. Under Topic 606, the Company recognizes revenue when its customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company expects to be entitled in exchange for those goods or services.

To determine revenue recognition for arrangements that are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company has two types of contracts with customers: (i) contracts for commercial product sales with wholesale distributors and specialty pharmacies and (ii) collaboration arrangements.

Revenue Recognition – Net Revenue – Commercial Product Sales – The Company sells Afrezza to a limited number of wholesale distributors and specialty pharmacies in the U.S. (collectively, its “Customers”). These Customers subsequently resell the Company’s products to retail pharmacies and certain medical centers or hospitals. Specialty pharmacies sell directly to patients. In addition to distribution agreements with Customers, the Company enters into arrangements with health care providers and payors that provide for government mandated and/or privately negotiated rebates, chargebacks, and discounts with respect to the purchase of the Company’s products.

The Company recognizes revenue on product sales when the Customer obtains control of the Company's product, which occurs at delivery for wholesale distributors and at shipment for specialty pharmacies. Product revenues are recorded net of applicable reserves for variable consideration, including discounts and allowances.

Free Goods Program – From time to time, the Company offers programs to potential new patients that allow them to obtain free goods (prescription fills) from a pharmacy. On a net basis, it is not probable that the Company will receive the consideration from these products. Therefore, the Company excludes such amounts from both gross and net revenue. The cost of product associated with the free goods program is included in the cost of goods sold.

Reserves for Variable Consideration — Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established. Components of variable consideration include trade discounts and allowances, product returns, provider chargebacks and discounts, government rebates, payor rebates, and other incentives, such as voluntary patient assistance, and other allowances that are offered within contracts between the Company and its Customers, payors, and other indirect customers relating to the Company’s sale of its products. These reserves, as detailed below, are based on the amounts earned, or to be claimed on the related sales, and result in a reduction of accounts receivable or establishment of a current liability.

Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted in accordance with the expected value method in Topic 606 for relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reduce recognized revenue to the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the respective underlying contracts.

The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period. The Company’s analysis also contemplates application of the constraint in accordance with the guidance, under which it determined a material reversal of revenue would not occur in a future period for the estimates detailed below as of September 30, 2019 and, therefore, the transaction price was not reduced further during the nine months ended September 30, 2019. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net revenue – commercial product sales and earnings in the period such variances become known.

Trade Discounts and Allowances — The Company generally provides Customers with discounts which include incentives, such as prompt pay discounts, that are explicitly stated in the Company’s contracts and are recorded as a reduction of revenue in the period the related product revenue is recognized. In addition, the Company compensates (through trade discounts and allowances) its Customers for sales order management, data, and distribution services. However, the Company has determined such services received to date are not distinct from the Company’s sale of products to the Customer and, therefore, these payments have been recorded as a reduction of revenue and as a reduction to accounts receivable, net.

Product Returns — Consistent with industry practice, the Company generally offers Customers a right of return for unopened product that has been purchased from the Company for a period beginning six months prior to and ending 12 months after its expiration date, which lapses upon shipment to a patient. The Company estimates the amount of its product sales that may be returned by its Customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized, as well as reductions to accounts receivable, net. The Company currently estimates product returns using available industry data and its own sales information, including its visibility into the inventory remaining in the distribution channel. The Company’s current return reserve percentage is estimated to be in the single-digits.

Provider Chargebacks and Discounts — Chargebacks for fees and discounts to providers represent the estimated obligations resulting from contractual commitments to sell products to qualified healthcare providers at prices lower than the list prices charged to Customers who directly purchase the product from the Company. Customers charge the Company for the difference between what they pay for the product and the ultimate selling price to the qualified healthcare providers. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is recorded in accrued expenses and other current liabilities. Chargeback amounts are generally determined at the time of resale to the qualified healthcare provider by Customers, and the Company generally issues credits for such amounts within a few weeks of the Customer’s notification to the Company of the resale. Reserves for chargebacks consist of credits that the Company expects to issue for units that remain in the distribution channel inventories at each reporting period-end that the Company expects will be sold to qualified healthcare providers, and chargebacks that Customers have claimed, but for which the Company has not yet issued a credit.

Government Rebates — The Company is subject to discount obligations under Medicare and state Medicaid programs. These reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities. For Medicare, the Company also estimates the number of patients in the prescription drug coverage gap for whom the Company will owe an additional liability under the Medicare Part D program. The Company’s liability for these rebates consists of invoices received for claims from prior quarters that have not been paid or for which an invoice has not yet been received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but which remains in the distribution channel inventories at the end of each reporting period.

Payor Rebates — The Company contracts with certain private payor organizations, primarily insurance companies and pharmacy benefit managers, for the payment of rebates with respect to utilization of its products. The Company estimates these rebates and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities.

Other Incentives — Other incentives which the Company offers include voluntary patient support programs, such as the Company's co-pay assistance program, which are intended to provide financial assistance to qualified commercially-insured patients with prescription drug co-payments required by payors. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with the product that has been recognized as revenue, but remains in the distribution channel inventories at the end of each reporting period. The adjustments are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of a current liability which is included in accrued expenses and other current liabilities.

Revenue Recognition – Revenue – Collaborations and Services— The Company enters into licensing or research agreements under which the Company licenses certain rights to its product candidates to third parties or conducting research services to third parties. The terms of these arrangements may include, but are not limited to payment to the Company of one or more of the following: nonrefundable up-front license fees; development, regulatory, and commercial milestone payments; payments for manufacturing commercial and clinical supply services the Company provides; and royalties on net sales of licensed products and sublicenses of the rights. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment such as determining the performance obligation in the contract and determining the stand-alone selling price for each performance obligation identified in the contract. If an arrangement has multiple performance obligations, the allocation of the transaction price is determined from observable market inputs, and the Company uses key assumptions to determine the stand-alone selling price, which may include development timelines, reimbursement rates for personnel costs, discount rates, and probabilities of technical and regulatory success. Revenue is recognized based on the measurement of progress as the performance obligation is satisfied and consideration received that does not meet the requirements to satisfy the revenue recognition criteria is recorded as deferred revenue. Current deferred revenue consists of amounts that are expected to be recognized as revenue in the next 12 months. Amounts that the Company expects will not be recognized within the next 12 months are classified as long-term deferred revenue. For further information see Note 8 — Collaborations and Licensing Arrangements.

The Company recognizes upfront license payments as revenue upon delivery of the license only if the license is determined to be a separate unit of accounting from the other undelivered performance obligations. The undelivered performance obligations typically include manufacturing or development services or research and/or steering committee services. If the license is not considered as a distinct performance obligation, then the license and other undelivered performance obligations would be evaluated to determine if such should be accounted for as a single unit of accounting. If concluded to be a single performance obligation, the transaction price for the single performance obligation is recognized as revenue over the estimated period of when the performance obligation is satisfied.

Whenever the Company determines that an arrangement should be accounted for over time, the Company determines the period over which the performance obligations will be performed, and revenue will be recognized over the period the Company is expected to complete its performance obligations. Significant management judgment is required in determining the level of effort required under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement.

The Company’s collaboration agreements typically entitle the Company to additional payments upon the achievement of development, regulatory and sales milestones. If the achievement of a milestone is considered probable at the inception of the collaboration, the related milestone payment is included with other collaboration consideration, such as upfront fees and research funding, in the Company’s revenue calculation. If these milestones are not considered probable at the inception of the collaboration, the milestones will typically be recognized in one of two ways depending on the timing of when the milestone is achieved. If the milestone is improbable at inception and subsequently deemed probable of achievement, such will be added to the transaction price, resulting in a cumulative adjustment to revenue. If the milestone is achieved after the performance period has completed and all performance obligations have been delivered, the Company will recognize the milestone payment as revenue in its entirety in the period the milestone was achieved.

The Company’s collaborative agreements, for accounting purposes, represent contracts with customers and therefore are not subject to accounting literature on collaborative agreements. The Company grants licenses to its intellectual property, supplies raw materials or finished goods and provides research and development services, all of which are outputs of the Company’s ongoing activities, in exchange for consideration. The Company does not develop assets jointly with collaboration partners, and does not share in significant risks of their development or commercialization activities. Accordingly, the Company concluded that its collaborative agreements must be accounted for pursuant to Topic 606, Revenue from Contracts with Customers.

For collaboration agreements that allow collaboration partners to select additional optioned products or services, the Company evaluates whether such options contain material rights (i.e., have exercise prices that are discounted compared to what the Company would charge for a similar product or service to a new collaboration partner). The exercise price of these options includes a combination of licensing fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, the Company concludes the option does not contain a material right, and therefore is not included in the transaction price at contract inception. Rather, the Company evaluates grants of additional licensing rights upon option exercises to determine whether such should be accounted for as separate contracts. The Company concluded there is no material right in these options.

The Company follows detailed accounting guidance in measuring revenue and certain judgments affect the application of its revenue policy. For example, in connection with its existing collaboration agreements, the Company has recorded on its condensed consolidated balance sheets short-term and long-term deferred revenue based on its best estimate of when such revenue will be recognized. Short-term deferred revenue consists of amounts that are expected to be recognized as revenue in the next 12 months. Amounts that the Company expects will not be recognized within the next 12 months are classified as long-term deferred revenue. However, this estimate is based on the Company’s current project development plan and, if the development plan should change in the future, the Company may recognize a different amount of deferred revenue over the next 12-month period.

Milestone Payments — At the inception of each arrangement that includes development milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the customer, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as, or when, the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of such development milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license, collaboration, other revenue, and earnings in the period of adjustment.

Cost of Goods Sold — Cost of goods sold includes material, labor costs and manufacturing overhead. Cost of goods sold also includes a significant component of current period manufacturing costs in excess of costs capitalized into inventory (excess capacity costs). These costs, in addition to the impact of the annual revaluation of inventory to standard costs, and write-offs of inventory are recorded as expenses in the period in which they are incurred, rather than as a portion of inventory costs. The cost of goods sold excludes the cost of insulin purchased under our Insulin Supply Agreement (see Note 11 – Commitments and Contingencies). All insulin inventory on hand and the full purchase commitment contract to purchase future insulin was written off as of the end of 2015.

Restricted Cash – The Company records restricted cash when cash and cash equivalents are restricted as to withdrawal or usage. The Company presents amounts of restricted cash that will be available for use within 12 months of the reporting date as restricted cash in current assets. Restricted cash amounts that will not be available for use in the Company’s operations within 12 months of the reporting date are presented as restricted cash in long term assets.

Short-term Investments —The Company’s short-term investments consist of U.S. Treasury securities stated at amortized cost which the Company intends to hold until maturity. Those with maturities less than 12 months are included in short-term investments and any investments with maturities in excess of twelve months are included in long-term investments in our condensed consolidated balance sheets. The Company did not record any material gains or losses on these securities during the nine months ended September 30, 2019.

Concentration of Credit Risk — Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents. Cash and cash equivalents are held in high credit quality institutions. Cash equivalents consist of interest-bearing money market accounts and U.S. Treasury securities, which are regularly monitored by management.

Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable are recorded at the invoiced amount and are not interest bearing. Accounts receivable are presented net of an allowance for doubtful accounts if there are estimated losses resulting from the inability of its customers to make required payments. The Company makes ongoing assumptions relating to the collectability of its accounts receivable in its calculation of the allowance for doubtful accounts. Accounts receivable are also presented net of an allowance for product returns and trade discounts and allowances because the Company’s customers have the right of setoff for these amounts against the related accounts receivable.

Inventories — Inventories are stated at the lower of cost or net realizable value. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company capitalizes inventory costs associated with the Company’s products based on management’s judgment that future economic benefits are expected to be realized; otherwise, such costs are expensed as incurred as cost of goods sold. The Company periodically analyzes its inventory levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value and writes down such inventories, as appropriate. In addition, the Company’s products are subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or may become obsolete or are forecasted to become obsolete due to expiration, the Company will record a charge to write down such unmarketable inventory to its estimated net realizable value.

The Company analyzes its inventory levels to identify inventory that may expire or has a cost basis in excess of its estimated realizable value. The Company performs an assessment of projected sales and evaluates the lower of cost or net realizable value and the potential excess inventory on hand at the end of each reporting period.

Recognized Loss on Purchase Commitments — The Company assesses whether losses on long term purchase commitments should be accrued. Losses that are expected to arise from firm, non-cancellable, commitments for the future purchases are recognized unless recoverable. When making the assessment, the Company also considers whether it is able to renegotiate with its vendors. The recognized loss on purchase commitments is reduced as inventory items are received. If, subsequent to an accrual, a purchase commitment is successfully renegotiated, the gain is recognized in the Company’s condensed consolidated statement of operations. The liability balance of the recognized loss on insulin purchase commitments is $89.5 million and $98.3 million as of September 30, 2019 and December 31, 2018, respectively. No new contracts were identified in 2019 or 2018 that required a new loss on purchase commitment accrual.

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.

Contingencies — The Company records a loss contingency for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These accruals represent management’s best estimate of probable loss. Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation and may revise its estimates.

Stock-Based Compensation — Share-based payments to employees, including grants of stock options, restricted stock units, performance-based awards and the compensatory elements of employee stock purchase plans, are recognized in the condensed consolidated statements of operations based upon the fair value of the awards at the grant date subject to an estimated forfeiture rate. The Company uses the Black-Scholes option valuation model to estimate the grant date fair value of employee stock options and the compensatory elements of employee stock purchase plans. Restricted stock units are valued based on the market price on the grant date. The Company evaluates stock awards with performance conditions as to the probability that the performance conditions will be met and estimates the date at which the performance conditions will be met in order to properly recognize stock-based compensation expense over the requisite service period.

Clinical Trial Expenses — Clinical trial expenses, which are primarily reflected in research and development expenses in the accompanying condensed consolidated statements of operations, result from obligations under contracts with vendors, consultants and clinical site agreements in connection with conducting clinical trials.

Net Income (Loss) Per Share of Common Stock — Basic net income or loss per share excludes dilution for potentially dilutive securities and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted net income or loss per share reflects the potential dilution under the treasury method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For periods where the Company has presented a net loss, potentially dilutive securities are excluded from the computation of diluted net loss per share as they would be anti-dilutive.

The computation of basic and diluted net loss per share for the nine months ended September 30, 2019 and 2018 excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive while the Company is in a net loss position:

	Nine months ended September 30,
	2019		2018
Vesting of restricted stock units		1,122,283		1,169,340
Employee stock purchase plan		147,675		97,598
Exercise of common stock options		15,361,337		11,431,526
Conversion of Senior Convertible Notes into common stock		1,666,667		3,629,627
Conversion of Promissory Notes into common stock		14,000,000		21,909,541
Exercise of common stock warrants		31,856		31,856
Exercise of warrants associated with Midcap Credit Facility		1,171,614	—
Exercise of warrants associated with public offering		23,333,333		—
Exercise of warrants associated with direct placement	—			14,000,000
Total shares		56,834,765		52,269,488

Leases —The Company adopted Accounting Standards Codification (“ASC”) Topic 842 – Leases (“the new lease guidance”) on January 1, 2019. Under Topic 842, the Company is required to recognize the assets and liabilities that arise from most operating leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements.

Upon adoption of the new lease guidance, the Company recognized a lease liability to make lease payments and a right-of-use-asset representing its right to use the underlying asset for the applicable lease term using the optional transition method. In doing so, the Company elected the package of three practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification. The Company also elected the practical expedient that permits not separating lease and non-lease components for all classes of underlying assets. For short-term leases, the Company has elected not to apply the recognition requirements of this guidance. The Company did not elect to use the hindsight practical expedient.

Upon the adoption as of January 1, 2019, the impact on total assets and total liabilities was an increase of $5.2 million. The standard did not materially impact net earnings and had no net impact on cash flow. See Note 11 — Commitments and Contingencies for further information related to leases.

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. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s condensed consolidated financial position or results of operations upon adoption.

Borrowings

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Borrowings

7. Borrowings

Carrying amount of borrowings consist of the following (in thousands):

	September 30, 2019		December 31, 2018
Deerfield Credit Facility	$	—	$	11,298
Senior convertible notes		9,957		19,099
Midcap Credit Facility		38,798		—
Mann Group promissory notes		70,019		72,089
Total debt - net carrying amount	$	118,774	$	102,486

During the third quarter, the Company discharged its obligations to its former senior secured lender, entered into a credit agreement with a new senior secured lender and restructured the obligations owed to its other lenders, as summarized in the following table:

Obligation

As of June 30, 2019

As of September 30, 2019

Amount Due

Annual

interest

rate

Maturity

date

Conversion

price

Amount Due

Annual

interest

rate

Maturity

date

Conversion

price

Deerfield Credit Facility

$4.0 million

9.75

July 2019

N/A

—

$5.0 million

9.75

August 2019

N/A

—

MidCap Credit Facility

—

$40.0 million

one-month

LIBOR (2% floor)

plus 6.75%

August 2024

N/A

Senior convertible notes

$18.7 million

5.75

October 2021

$5.15

per share

$5.0 million

5.75%

November 2024

$3.00

per share

June 2020 note

$2.6 million

—

June 2020

N/A

December 2020 notes

$2.6 million

—

December 2020

N/A

Mann Group promissory

convertible note

$80.6 million

(including

accrued

interest

paid-in-kind)

5.84

July 2021

$4.00

per share

$35.0 million

7.00%

November 2024

$2.50

per share

Mann Group promissory

non-convertible note

$35.1 million

7.00%

November 2024

N/A

Deerfield Facility Financing Obligation – On July 1, 2013, the Company entered into a facility agreement (the “Deerfield Credit Facility”) with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively, “Deerfield”), which permitted it to borrow $160.0 million through the issuance of 9.75% notes due 2019 (“2019 notes”), $100.0 million of which were converted into shares of the Company’s common stock during 2013 and 2014. The Company and Deerfield amended the Deerfield Credit Facility in 2014 to permit the Company to borrow an additional $20.0 million through the issuance of 8.75% notes (“Tranche B notes”). The remaining $80.0 million in principal amount that was not converted during 2013 and 2014 ($60.0 million in 2019 notes and $20.0 million in Tranche B notes) was subject to a repayment schedule that began in July 2016. By June 30, 2019, the Company had repaid all amounts owed under the Tranche B notes and owed approximately $9.0 million in respect of outstanding 2019 notes. On July 18, 2019, the Company entered into an exchange agreement with Deerfield pursuant to which, among other things, the Company (i) repaid approximately $2.4 million in aggregate principal amount of 2019 notes plus all accrued and unpaid interest, and (ii) issued an aggregate of 1,514,423 shares of the Company’s common stock to Deerfield in exchange for approximately $1.6 million in aggregate principal amount of 2019 notes.

On August 6, 2019, the Company entered into an exchange agreement with Deerfield pursuant to which, among other things, the Company (i) repaid $2.0 million of the aggregate principal amount of 2019 notes plus accrued and unpaid interest, (ii) issued an aggregate of 2,678,571 shares of MannKind’s common stock to Deerfield in exchange for $3.0 million in aggregate principal amount of 2019 notes and (iii) canceled the 2019 notes.

As of September 30, 2019, the Deerfield Credit Facility was paid in full. The unamortized debt issuance costs and debt discount were zero and $0.2 million as of September 30, 2019 and December 31, 2018, respectively.

Security Agreement — In connection with the Deerfield Credit Facility, the Company and its subsidiary, MannKind LLC, entered into a Guaranty and Security Agreement (the “Security Agreement”) with Deerfield and Horizon Santé FLML SÁRL (collectively, the “Purchasers”), pursuant to which the Company and MannKind LLC each granted the Purchasers a security interest in substantially all of their respective assets, including respective intellectual property, accounts receivables, equipment, general intangibles, inventory and investment property, and all of the proceeds and products of the foregoing. The Security Agreement included customary covenants by the Company and MannKind LLC, remedies of the Purchasers and representations and warranties by the Company and MannKind LLC. The security interests granted by the Company and MannKind LLC terminated on August 6, 2019 upon repayment of the Deerfield Credit Facility.

Milestone Rights — On July 1, 2013, in conjunction with the execution of the Deerfield Credit Facility, the Company issued to Deerfield Private Design Fund II, L.P. and Horizon Santé FLML SÀRL, (the “Milestone Purchasers”) certain rights to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, $75.0 million of which remains payable upon achievement of such milestones (the “Milestone Rights”), pursuant to a separate agreement (the “Milestone Agreement”) that continues beyond the expiration of the Deerfield Credit Facility and the Security Agreement.

As of September 30, 2019 and December 31, 2018, the remaining Milestone Rights liability balance was $8.9 million which is based on initial fair value estimates calculated using the income approach and reduced by milestone achievement payments made. During the quarter ended September 30, 2019, the Company achieved the first Afrezza net sales milestone specified in the Milestone Agreement. As a result, the Company is required to deliver a milestone event notice to the Milestone Purchasers no later than the date of this quarterly report and make a payment of $5.0 million within three business days thereafter. The carrying value of this Milestone Rights liability is $1.6 million, which represents the fair value related to this payment, determined in 2013 (the most recent measurement date). Accordingly, $1.6 million was recorded as a current liability and $3.4 million was recognized as interest expense as of September 30, 2019. The remaining Milestone Right liability of $7.3 million remains non-current as of September 30, 2019.

The Milestone Agreement includes customary representations and warranties and covenants by the Company, including restrictions on transfers of intellectual property related to Afrezza. The Milestone Rights are subject to acceleration in the event the Company transfers its intellectual property related to Afrezza in violation of the terms of the Milestone Agreement. The Company has initially recorded the Milestone Rights at their estimated fair value.

MidCap Credit Facility — On August 6, 2019, the Company closed the MidCap Credit Facility, which provides a secured term loan facility in an aggregate principal amount of up to $75.0 million. The Company borrowed the first advance of $40.0 million (“Tranche 1”) on August 6, 2019. Under the terms of the MidCap Credit Facility, the second advance of $10.0 million (“Tranche 2”) will be available to the Company until April 15, 2020, subject to the Company’s satisfaction of certain conditions, including achieving Afrezza net revenue of at least $30.0 million on a trailing twelve month basis. Under the terms of the MidCap Credit Facility, the third advance of $25.0 million (“Tranche 3”) will be available to the Company until September 30, 2021, subject to the satisfaction of certain milestone conditions associated with the Company’s collaboration with United Therapeutics (see Note 8 – Collaborations and Licensing Arrangements). In addition, unamortized debt issuance costs were $0.8 million and unamortized debt discount was $0.3 million as of September 30, 2019.

Tranche 1 and, if borrowed, Tranche 2 and Tranche 3, each accrue interest at an annual rate equal to one-month LIBOR plus 6.75%, subject to a one-month LIBOR floor of 2.00%. Interest on each term loan advance is due and payable monthly in arrears. Principal on each term loan advance under Tranche 1 and Tranche 2 is payable in 36 equal monthly installments beginning September 1, 2021, until paid in full on August 1, 2024, and principal on each term loan advance under Tranche 3 is payable beginning on the later of (i) September 1, 2021, and (ii) the first day of the first full calendar month immediately following such term loan advance, in an amount equal to the outstanding term loan advance in respect of Tranche 3 divided by the number of full calendar months remaining before August 1, 2024. The Company has the option to prepay the term loans, in whole or in part, subject to early termination fees in an amount equal to 3.00% of principal prepaid if prepayment occurs on or prior to the first anniversary of the closing date, 2.00% of principal prepaid if prepayment occurs after the first anniversary of the closing date but on or prior to the second anniversary of the closing date, and 1.00% of principal prepaid if prepayment occurs after the second anniversary of the closing date and prior to or on the third anniversary of the closing date. In connection with execution of the MidCap Credit Facility, the Company paid MidCap a $0.4 million origination fee.

Upon termination of the MidCap Credit Facility, the Company is required to pay an exit fee equal to 6.00% of the principal amount of all term loans advanced to the Company under the MidCap Credit Facility.

The Company’s obligations under the MidCap Credit Facility are secured by a security interest on substantially all of its assets, including intellectual property.

The MidCap Credit Facility contains customary affirmative covenants and customary negative covenants limiting the Company’s ability and the ability of the Company’s subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock and make investments, in each case subject to certain exceptions. The Company must also comply with a financial covenant relating to trailing twelve month minimum Afrezza net revenue, tested on a monthly basis, and a minimum cash covenant of $15.0 million at all times prior to the funding of Tranche 2, and $20.0 million at all times following the funding of Tranche 2 or Tranche 3.

The MidCap Credit Facility also contains customary events of default relating to, among other things, payment defaults, breaches of covenants, a material adverse change, listing of the Company’s common stock, bankruptcy and insolvency, cross defaults with certain material indebtedness and certain material contracts, judgments, and inaccuracies of representations and warranties. Upon an event of default, the agent and the lenders may declare all or a portion of the Company’s outstanding obligations to be immediately due and payable and exercise other rights and remedies provided for under the MidCap Credit Facility. During the existence of an event of default, interest on the term loans could be increased by 2.00%.

The Company also agreed to issue warrants to purchase shares of MannKind’s common stock (the “MidCap warrants”) upon the drawdown of each term loan advance under the MidCap Credit Facility in an aggregate amount equal to 3.25% of the amount drawn, divided by the exercise price per share for that tranche. The exercise price per share is equal to the volume-weighted average closing price of MannKind’s common stock for the ten business days immediately preceding the second business day before the issue date. As a result of Tranche 1, the Company issued warrants to purchase an aggregate of 1,171,614 shares of the Company’s common stock, at an exercise price equal to $1.11 per share. The MidCap warrants are immediately exercisable and expire on the earlier to occur of the seventh anniversary of the respective issue date or, in certain circumstances, the closing of a merger, sale or other consolidation transactions in which the consideration is cash, stock of a publicly traded acquirer, or a combination thereof.

Senior Convertible Notes — As of September 30, 2019 and December 31, 2018, there was $10.0 million and $18.7 million principal amount of senior convertible notes outstanding, respectively.

On August 6, 2019, the Company entered into a privately-negotiated exchange agreement with the holder of the Company’s 5.75% Senior Convertible Notes due 2021 (the “2021 notes”), pursuant to which, among other things, the Company (i) repaid $1.5 million in cash to such holder, (ii) issued 4,017,857 shares of MannKind’s common stock to such holder (at a conversion price of $1.12 per share), (iii) issued new 5.75% Convertible Senior Subordinated Exchange Notes due 2024 (the “2024 convertible notes”) to such holder in an aggregate principal amount of $5.0 million and (iv) issued two non-interest bearing promissory notes to such holder, each in the amount of $2.6 million, one of which will mature on June 30, 2020 (the “June 2020 note”) and the other of which will mature on December 31, 2020 (the “December 2020 note”, and together with the June 2020 note, the “2020 notes”), all in exchange for the cancellation of the $18.7 million in principal amount of the 2021 notes. The 2020 notes may be prepaid at any time on or prior to their respective maturity dates at the option of MannKind. In addition, MannKind may elect to pay the 2020 notes at any time on or prior to their respective maturity dates, if certain conditions are met, in shares of MannKind’s common stock at a price per share equal to the last reported sale price on the trading day immediately prior to the payment date.

The 2024 convertible notes were issued pursuant to an indenture, dated as of August 6, 2019, between MannKind and U.S. Bank National Association, as trustee (the “Indenture”). The 2024 convertible notes are MannKind’s general, unsecured obligations, and are subordinated in right of payment to the indebtedness incurred pursuant to the MidCap Credit Facility. The 2024 convertible notes rank equally in right of payment with MannKind’s other unsecured senior debt. The 2024 convertible Notes accrue interest at the rate of 5.75% per year on the principal amount, payable semiannually in arrears on February 15 and August 15 of each year, beginning February 15, 2020, with interest accruing from August 6, 2019. Interest on the 2024 convertible notes will be payable in cash or, at the option of MannKind if certain conditions are met, in shares of MannKind’s common stock at a price per share equal to the last reported sale price on the trading day immediately prior to the interest payment date. The 2024 convertible notes will mature on the earlier of (i) November 4, 2024 or (ii) the 91^st day after the payment in full of, and termination and discharge of all obligations (other than contingent indemnity obligations) under the MidCap Credit Facility.

The 2024 convertible notes will be 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 MannKind’s common stock at a conversion rate of 333.3333 shares per $1,000 principal amount of 2024 convertible notes, which is equal to a conversion price of approximately $3.00 per share.

If certain bankruptcy and insolvency-related events of default occur, the principal of, and accrued and unpaid interest on, all of the then outstanding 2024 convertible notes shall automatically become due and payable. If an event of default other than certain bankruptcy and insolvency-related events of defaults occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding 2024 convertible notes, by written notice to the Trustee, may declare the 2024 convertible notes due and payable at their principal amount plus any accrued and unpaid interest, and thereupon the Trustee may, at its discretion, proceed to protect and enforce the rights of the holders by the appropriate judicial proceedings. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will, for the first 180 days after such event of default, consist exclusively of the right to receive additional interest on the 2024 convertible notes.

If MannKind undergoes certain fundamental changes, except in certain circumstances, each holder of 2024 convertible notes will have the option to require MannKind to repurchase all or any portion of that holder’s 2024 convertible notes. The fundamental change repurchase price will be 100% of the principal amount of the 2024 convertible notes to be repurchased plus accrued and unpaid interest, if any.

MannKind may elect at its option to cause all or any portion of the 2024 convertible notes to be mandatorily converted in whole or in part at any time prior to the close of business on the business day immediately preceding the maturity date, if the last reported sale price of its common stock equals or exceeds 120% of the conversion price then in effect for at least 10 trading days in any 20 trading day period, ending within five business days prior to the date of the mandatory conversion notice.

As a result of the exchange of the senior convertible notes, the Company recorded $3.1 million as an extinguishment gain. The unamortized premium was zero and $0.4 million as of September 30, 2019 and December 31, 2018, respectively.

Mann Group promissory notes - On August 5, 2019, MannKind entered into a privately-negotiated exchange agreement (the “Mann Group Exchange Agreement”) with The Mann Group, pursuant to which, among other things, MannKind (i) repaid $3.0 million in cash to The Mann Group, (ii) issued 7,142,857 shares of MannKind’s common stock to The Mann Group (at a conversion price of $1.12 per share), (iii) issued a new convertible promissory note (the “Mann Group convertible note”) to the Mann Group in an aggregate principal amount of $35.0 million and (iv) issued a new non-convertible promissory note (the “Mann Group non-convertible note,” together with the Mann Group convertible note, the “Mann Group Notes ”) to the Mann Group in an aggregate principal amount of $35.1 million, all in exchange for the cancellation of the $71.5 million in principal and approximately $9.5 million in accrued interest paid-in-kind under the Mann Group Loan Arrangement.

The Mann Group convertible note and Mann Group non-convertible note each accrue interest at the rate of 7.00% per year on the principal amount, payable quarterly in arrears on the first day of each calendar quarter beginning October 1, 2019.

The Mann Group convertible note will mature on November 3, 2024. The principal and any accrued and unpaid interest under the Mann Group convertible note may be converted, at the option of the Mann Group, at any time on or prior to the close of business on the business day immediately preceding the stated maturity date, into shares of MannKind’s common stock at a conversion rate of 400 shares per $1,000 of principal and/or accrued and unpaid interest, which is equal to a conversion price of $2.50 per share. The conversion rate will be subject to adjustment under certain circumstances described in the Mann Group convertible note. Interest on the Mann Group convertible note will be payable in kind by adding the amount thereof to the principal amount; provided that with respect to interest accruing from and after January 1, 2021, MannKind may, at its option, elect to pay any such interest on any interest payment date, if certain conditions are met, in shares of MannKind’s common stock at a price per shall equal to the last reported sale price on the trading day immediately prior to the payment date.

The Mann Group non-convertible note will mature on the earlier of (i) November 3, 2024 or (ii) the 90th day after the repayment in full, and termination and discharge of all obligations (other than contingent indemnity obligations) under the MidCap Credit Facility. Interest on the Mann Group non-convertible note will be payable in kind by adding the amount thereof to the principal amount; provided that MannKind may, at its option, elect to pay any such interest on any interest payment date, if certain conditions are met, in shares of MannKind’s common stock at a price per shall equal to the last reported sale price on the trading day immediately prior to the interest payment date.

The Company recorded $0.4 million as an extinguishment gain. The unamortized premium and unaccreted debt issuance costs was zero and $0.6 million as of September 30, 2019 and December 31, 2018, respectively.

Unlike the presentation in previous periods, the Mann Group is not identified as a related party in the condensed consolidated balance sheets, the condensed consolidated statement of operations and the condensed consolidated statement of cash flows. As previously reported in the Company’s Form 10-Q filed on August 7, 2019, $72.0 million was classified as related party notes and $9.1 million was classified as accrued interest due to related party in the condensed consolidated balance sheet as of June 30, 2019.

Amortization of the premium and accretion of debt issuance costs related to all borrowings for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Amortization of debt premium	$	858	$	94	$	1,049	$	244
Amortization of debt discount	$	8	$	375	$	149	$	1,072
Accretion expense - debt issuance cost	$	34	$	22	$	84	$	47

Collaborations and Licensing Arrangements

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Collaborations and Licensing Arrangements

8. Collaborations and Licensing Arrangements

Revenue from collaborations and services for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands):

	Three Months ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
UT License Agreement	$	7,861	$	—	$	23,255	$	—
UT Research Agreement		158		—		5,874		—
Receptor Collaboration and License Agreement		62		45		187		171
Biomm		75		—		75		—
Cipla License and Distribution Agreement		37		37		111		61
	$	8,193	$	82	$	29,502	$	232

United Therapeutics License Agreement – In September 2018, the Company and United Therapeutics Corporation (“United Therapeutics” or “UT”) entered into an exclusive global license and collaboration agreement (the “UT License Agreement”) for the rights to the Company’s dry powder formulation of treprostinil (“TreT”) and associated inhalation delivery devices. Under the UT License Agreement, UT will be responsible for global development, regulatory and commercial activities with respect to TreT. The Company will manufacture clinical supplies and initial commercial supplies of TreT.

Under the terms of the UT License Agreement, the Company received an upfront payment of $45.0 million in October 2018 and a $12.5 million milestone payment on March 29, 2019. The Company may receive additional milestone payments of up to $37.5 million upon the achievement of specified development targets. The Company will also be entitled to receive low double-digit royalties on net sales of TreT. UT, at its option, may expand the scope of the products covered by the UT License Agreement to include products with certain other active ingredients for the treatment of pulmonary arterial hypertension. Each such optioned product would be subject to UT’s payment to the Company of up to $40.0 million in additional option exercise and development milestone payments, as well as a low double-digit royalty on net sales of any such product. The Company recognizes revenue on a ratable basis from October 2018 through December 2021 – the estimated date when its performance obligations for development activities under UT License Agreement will be substantially completed. During the three and nine months ended September 30, 2019, the Company recognized $7.9 million and $23.3 million, respectively, as revenue - collaborations and services. The total deferred revenue consists of $32.2 million of which $31.5 million is current and $0.7 million is long term. Deferred revenue is classified as part of current or long-term liability in the accompanying condensed consolidated balance sheets based on the Company’s estimate of the portion of the performance obligation regarding that revenue will be completed within the next 12 months, and includes payments received as well as payments receivable.

The Company has evaluated the UT License Agreement in accordance with the revenue recognition requirements pursuant to ASC 606:

At the inception of the agreement, the Company identified one distinct, performance obligation. The Company determined that the key deliverables include the license, supply of product to be used in clinical development, and certain research services upon achievement of specified development targets. Due to the specialized and unique nature of these services and their direct relationship with the license, the Company has determined that these deliverables represent one distinct bundle and thus, one performance obligation. The Company also determined that UT’s option to expand the scope of the products covered to include products with other active ingredients is not a material right, and thus, not a performance obligation at the onset of the agreement. The consideration for the option will be accounted for if and when it is exercised.

The Company expects to complete the activities specified in the development plan and to achieve the remaining milestone events for total consideration of approximately $100.4 million, which includes an upfront payment, four milestone payments and various pass-through costs. Future commercial supply remains at UT’s option, is valued at a stand-alone selling price and is therefore not accounted for the current arrangement. The Company believes that this method best reflects the measure of progress toward complete satisfaction of the performance obligation.

United Therapeutics Research Agreement – In September 2018, the Company and UT also entered into a research agreement (“UT Research Agreement”) for the conduct of research and consulting services in connection with multiple potential products, including evaluating the feasibility of preparing a dry powder formulation of a compound for the treatment of pulmonary hypertension outside the scope of the UT License Agreement. In addition, UT, at its option, may obtain a license to develop, manufacture and commercialize products based on specified compounds within the drug classes covered by the UT Research Agreement. Each specified compound advanced into development and commercialization under such a license would be subject to the payment to the Company of additional milestone payments of up to $30.0 million and a low double-digit royalty on net sales of such products. The Company received an upfront payment of $10.0 million in September 2018.

At the inception of the UT Research Agreement, the Company identified two distinct performance obligations. The Company determined that the key deliverables of each performance obligation include (i) the development of a product prototype (including a technical feasibility report) and; (ii) engineering consulting services. Due to the separately identifiable nature of these obligations, the Company has determined that these deliverables represent two distinct performance obligations. The Company also determined that UT’s option to expand the scope to include specific drug classes covered by the agreement is not a material right, and thus, not a performance obligation at the onset of the agreement. The consideration for the option will be accounted for if and when it is exercised.

The Company allocated the total $10.0 million transaction price to its two distinct performance obligations based on available observable market inputs. A transaction price of $9.0 million was allocated to the product prototype and a transaction price of $1.0 million was allocated to engineering consulting services. The revenue for the product prototype is recognized using an output method (based on project milestones achieved and surveys of performance completed to date). The Company believes that this method best reflects the measure of progress toward complete satisfaction of the performance obligation. The revenue for the engineering consulting services is recognized using a ratable method until the obligation is satisfied and the Company believes that this method best reflects the measure of progress toward complete satisfaction of the performance obligation. During the three and nine months ended September 30, 2019, the Company recognized $0.2 million and $5.9 million as revenue - collaborations and services, respectively. As of September 30, 2019 the current deferred revenue balance was $0.4 million.

Receptor Collaboration and License Agreement — In 2016, the Company entered into a Collaboration and License Agreement (the “CLA”) with Receptor Life Sciences, Inc. (“Receptor”) pursuant to which Receptor subsequently acquired an exclusive license to develop, manufacture and commercialize products that use the Company’s technology to deliver certain compounds via oral inhalation in exchange for $1.3 million in signing fees and upfront license fees. Under the CLA, the Company may also receive nonrefundable milestone payments upon the completion of certain technology transfer activities and the achievement of specified sales targets as well as royalties upon Receptor’s and its sublicensees’ sale of products.

The $1.0 million license fee received in 2016 was recorded in deferred revenue from collaborations as of December 31, 2016 and is being recognized in net revenue — collaborations over four years, the estimated period over which the Company is required to satisfy the remaining performance obligations. The remaining performance obligations are to provide certain technology transfer activities. As of September 30, 2019, deferred revenue related to this contract was $0.4 million recorded as a current liability.

The additional payments referred to above represent variable consideration for which the Company has not recognized any revenue because it is uncertain that Receptor will be able to successfully develop, manufacture or sell product related to this license. Therefore, the receipt of such payments is highly susceptible to factors outside of the Company’s influence, the uncertainty regarding the receipt of these payments is not expected to be resolved for years, and the Company has limited experience with similar contracts. There was no change to the accounting for this contract as a result of the initial application of the new revenue guidance. See Note 1 – Description of Business and Summary of Significant Accounting Policies for additional information on the Company’s revenue recognition accounting policy.

In 2017, the Company entered into a Manufacturing and Supply Agreement with Receptor pursuant to which the Company agreed to provide certain raw materials and certain additional research and formulation consulting services to Receptor. For the three and nine months ended September 30, 2019 and 2018 the additional research and formulation services provided to Receptor were de minimis.

Cipla License and Distribution Agreement — In May 2018, the Company and Cipla Ltd. (“Cipla”) entered into an exclusive agreement for the marketing and distribution of Afrezza in India and the Company received a $2.2 million nonrefundable license fee. Under the terms of the agreement, Cipla will be responsible for obtaining regulatory approvals to distribute Afrezza in India and for all marketing and sales activities of Afrezza in India. The Company is responsible for supplying Afrezza to Cipla. The Company has the potential to receive certain additional regulatory milestone payments, minimum purchase commitment revenue and royalties on Afrezza sales in India once cumulative gross sales have reached a specified threshold.

The nonrefundable licensing fee was recorded in deferred revenue and is being recognized in net revenue – collaborations over 15 years, representing the estimated period to satisfy the performance obligation. The additional milestone payments represent variable consideration for which the Company has not recognized any revenue because of the uncertainty of obtaining marketing approval. The Company also recognized $0.2 million as income tax expense for a payment made to the India tax authority in 2018. Deferred revenue related to this contract was $2.0 million at September 30, 2019, of which $0.1 million was recorded in current liabilities.

Biomm Supply and Distribution Agreement – In May 2017, the Company and Biomm S.A. entered into a supply and distribution agreement for the commercialization of Afrezza in Brazil. Under this agreement, Biomm is responsible for preparing and filing the necessary applications for regulatory approval of Afrezza in Brazil, including from the Agência Nacional de Vigilância Sanitária (“ANVISA”) and, with respect to pricing matters, from the Camara de Regulação de Mercado de Medicamentos (“CMED”). Afrezza was approved by ANVISA during the second quarter of 2019; registration by CMED is expected by the end of 2019. In September 2019, the Company delivered its first shipment of Afrezza to Biomm and recorded it as commercial product sales for $0.7 million in advance of the planned launch of the product in Brazil by Biomm.

AMSL Distribution Agreement – In May 2019, the Company entered into an exclusive marketing and distribution agreement with the AMSL Diabetes division of Australasian Medical & Scientific Ltd. (“AMSL Diabetes”) for the commercialization of Afrezza in Australia. Under the terms of this agreement, AMSL Diabetes is responsible for obtaining regulatory and reimbursement approvals to distribute Afrezza in Australia. Upon regulatory approval, AMSL Diabetes will conduct sales, marketing, and customer support and distribution activities whereas the Company will be responsible for the supply and manufacturing of Afrezza.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

9. Fair Value of Financial Instruments

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. The Company uses the exit price method for estimating the fair value of loans for disclosure purposes.

The carrying amounts reported in the accompanying condensed consolidated financial statements for cash, accounts receivable, accounts payable, and accrued expenses and other current liabilities (excluding the Milestone Rights liability) approximate their fair value due to their relatively short maturities. The fair value of the cash equivalents, the Mann Group Notes, senior convertible notes, 2020 notes, the MidCap Credit Facility and the Milestone Rights liabilities are disclosed below.

Cash Equivalents and restricted cash— 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 September 30, 2019 and December 31, 2018, the Company held $30.2 million and $71.2 million, respectively, of cash and cash equivalents. Restricted cash is held in an escrow account as well as used to collateralize a letter of credit. The Company held $0.3 million and $0.5 million in restricted cash as of September 30, 2019 and December 31, 2018, respectively. Both are comprised of money market funds. 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).

Short-term investments— Short-term investments consist of highly liquid investments that are intended to facilitate liquidity and capital preservation. As of September 30, 2019 the Company held $19.9 million of short-term investments in U.S. Treasury bills or notes. The fair value of short-term investments approximate their carrying value. The measurement of which is based on a market approach using quoted market values (Level 1 in the fair value hierarchy).

The fair value measurement of debt instruments is based on a discounted cash flow model and is sensitive to the change in yield (Level 3 in the fair value hierarchy):

Mann Group Notes — If the yield increases by approximately 2% from 31% to 33%, the fair value of the notes payable would change from $42.0 million to $40.1 million, or a decrease of $1.9 million or 4.5%; if the yield decreases 2% from 31% to 29%, the fair value of the note payable with conversion feature would change from $42.0 million to $44.1 million, or an increase of $2.1 million or 5.0%. If the yield increases by approximately 4% from 31% to 35%, the fair value of the note payable with the conversion feature would change from $42.0 million to $38.4 million, or a decrease of $3.6 million or 8.6%; if the yield decreases 4% from 31% to 27%, the fair value of the note payable with conversion feature would change from $42.0 million to $46.4 million, or an increase of $4.4 million or 10.5%.

Senior Convertible Notes – If the yield increases by approximately 2% from 31% to 33%, the fair value of the notes payable would change from $7.3 million to $7.1 million, or a decrease of $0.2 million and 2.7%; if the yield decreases 2% from 31% to 29%, the fair value of the note payable with conversion feature would change from 7.3 million to $7.5 million, or an increase of $0.2 million or 2.7%. If the yield increases by approximately 4% from 31% to 35%, the fair value of the note payable with the conversion feature would change from $7.3 million to $7.0 million, or a decrease of $0.3 million or 4.1%; if the yield decreases 4% from 31% to 27%, the fair value of the note payable with conversion feature would change from $7.3 million to $7.7 million, or an increase of 0.4 million and 5.5%.

MidCap credit facility - If the yield increases by approximately 1% from 11.5% to 12.5%, the fair value of the notes payable would change from $38.1 million to $37.1 million, or a decrease of $1.0 million or 2.7%; if the yield decreases 1% from 11.5% to 10.5%, the fair value of the note payable with conversion feature would change from $38.1 million to $39.1 million, or an increase of $1.0 million or 2.6%. If the yield increases by approximately 2% from 11.5% to 13.5%, the fair value of the note payable with the conversion feature would change from $38.1 million to $36.2 million, or a decrease of $1.9 million or 5.0%; if the yield decreases 2% from 11.5% to 9.5%, the fair value of the note payable with conversion feature would change from $38.1 million to $40.2 million, or an increase of $2.1 million or 5.5%.

Financial Liabilities — The following tables set forth the fair value of the Company’s financial instruments (in millions):

	September 30, 2019
	Carrying Value		Significant Unobservable Inputs (Level 3)		Fair Value
Financial liabilities:
June 2020 Note		2.5		2.1		2.1
December 2020 Note		2.4		1.9		1.9
Senior convertible notes		5.0		3.3		3.3
Mann Group Notes		70.0		42.0		42.0
MidCap Credit Facility		38.8		38.1		38.1
Milestone rights		8.9		19.4		19.4
Total financial liabilities	$	127.6	$	106.8	$	106.8

	December 31, 2018
	Carrying Value		Significant Unobservable Inputs (Level 3)		Fair Value
Financial liabilities:
Deerfield Credit Facility	$	11.3	$	11.4	$	11.4
Senior convertible notes		19.1		17.5		17.5
Mann Group Notes		72.1		55.0		55.0
Milestone rights		8.9		18.1		18.1
Total financial liabilities	$	111.4	$	102.0	$	102.0

Milestone Rights Liability — The fair value measurement of the Milestone Rights liability is sensitive to the discount rate and the timing of achievement of milestones. The Company utilized Monte-Carlo Simulation Method to simulate the Net Sales under a neutral framework to estimate the payment. The Company then discounted the future expected payments at cost of debt with a term equal to the simulated time to payout based on cumulative sales.

Embedded Derivatives — The Company identified and evaluated a number of embedded features in the notes issued under the Facility Agreement to determine if they represented embedded derivatives that are required to be separated from the notes and accounted for as freestanding instruments. The Company analyzed the Tranche B notes and identified embedded derivatives, which required separate accounting. All of the embedded derivatives were determined to have a de minimis value at December 31, 2018 and no value as of September 30, 2019 due to the repayment of the Deerfield Credit Facility in full in August 2019.

- 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

Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. 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 September 30, 2019, 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. 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 in January 2016 of Sanofi’s election to terminate a license and collaboration agreement (the “Sanofi License Agreement”) between the Company and sanofi-aventis U.S. LLC (“Sanofi”) 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. In November 2016, the district court dismissed one of the actions without prejudice. In the remaining action, the district court ruled in October 2017 that U.S. law will apply to this case. The plaintiff appealed this ruling, and following an oral hearing before the Supreme Court of Israel, decided to withdraw his appeal. Subsequently, in November 2018, the Company filed a motion to dismiss the certification motion. At a case conference in February 2019, the court directed the parties to negotiate a procedure for determining whether the plaintiff can distinguish the claims in the Israeli litigation from those in a U.S. case against the Company based on the same events (which was dismissed by the U.S. district court for the Central District of California in August 2016). In September 2019, the plaintiff brought a motion to amend his claim, which the Company has opposed. The Company will continue to vigorously defend against the claims advanced.

Contingencies — In connection with the Facility Agreement, on July 1, 2013, the Company also entered into a Milestone Agreement with the Milestone Purchasers, pursuant to which the Company granted such Milestone Purchasers rights to receive payments up to $90.0 million upon the occurrence of specified strategic and sales milestones, $75.0 million of which remains payable upon achievement of such milestones (see Note 7 – Borrowings).

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.

On August 2, 2019, the Company and Amphastar amended the Insulin Supply Agreement to extend the term an additional two years and to restructure the annual purchase commitments as follows:

	As of June 30, 2019			As amended August 2, 2019
2019	€	2.3 million		€		—
2020	€	15.9 million		€	6.6 million
2021	€	15.9 million		€	6.6 million
2022	€	19.8 million		€	8.5 million
2023	€	19.8 million		€	10.9 million
2024	€	8.6 million		€	14.6 million
2025	€		—	€	15.5 million
2026	€		—	€	19.4 million

In connection with this amendment, the Company paid an amendment fee of $1.5 million on September 15, 2019 and is obligated to pay an additional $1.25 million by December 15, 2019. The Company recognized the $2.75 million amendment fee as a part of cost of goods sold.

Unless terminated earlier, the term of the Insulin Supply Agreement expires on December 31, 2026 and can be renewed for additional, successive two year term 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 a 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. On July 1, 2019, the Company entered into a 90-day foreign currency hedging transaction to mitigate its exposure to foreign currency exchange risks associated with the then-existing third quarter purchase requirement amount of €1.9 million. The Company realized a de minimis currency loss during third quarter of 2019. This amount is recorded in other income and expense. As a result of the August 2019 amendment to the Insulin Supply Agreement, there are no additional insulin deliveries scheduled for the remainder of 2019. Accordingly, the Company has not entered into any additional hedge transactions.

Warrants - On December 26, 2018, the Company closed an underwritten public offering of 26,666,667 shares of the Company’s common stock and warrants to purchase up to an aggregate of 26,666,667 shares of the Company’s common stock (the “December warrants”) at a combined purchase price of $1.50 per share and accompanying warrant. The shares of common stock and the December warrants were immediately separable. The December warrants are exercisable at a price of $1.60 per share and will expire on December 26, 2019. The net proceeds to the Company from the offering were approximately $37.3 million. The Company determined that the December warrants met the criteria for equity classification and accounted for such warrants in additional paid-in capital. On July 18, 2019, the Company repurchased 3,333,334 December warrants for consideration of approximately $0.4 million, leaving 23,333,333 shares reserved for issuance pursuant to remaining December warrants.

On August 6, 2019, in connection with the MidCap Credit Facility, the Company issued warrants to purchase an aggregate of 1,171,614 shares of the Company’s common stock, at an exercise price equal to $1.11 per share, to the lenders. These warrants are immediately exercisable and expire on the earlier to occur of the seventh anniversary of the respective issue date or, in certain circumstances, the closing of a merger, sale or other consolidation transactions in which the consideration is cash, stock of a publicly traded acquirer, or a combination thereof. The Company determined that these warrants met the criteria for equity classification and accounted for such warrants in additional paid-in capital. Additional warrants will be issued if the Company accesses additional tranches under the MidCap Credit Facility. For additional detail, see Note 7 – Borrowings.

Vehicle Leases – During the second quarter of 2018, the Company entered into a lease agreement with Enterprise Fleet Management Inc. for the lease of approximately 119 vehicles. The lease requires monthly payments of approximately $83,000 per month including the cost of maintaining the vehicles, taxes and insurance. The lease commenced when the Company took possession of the majority of the vehicles in the second quarter of 2018 and expires 48 months after the delivery date. As of September 30, 2019, 29 vehicles were removed from the fleet, resulting in a fleet size of 90 vehicles; no gain or loss was recorded. The revised monthly payment inclusive of maintenance fees, insurance and taxes is $72,000 and the reduction of the right of use asset and lease obligation is approximately $0.6 million in our condensed consolidated balance sheets. The lease expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for the three and nine months ended September 30, 2019.

Upon adoption of the new lease guidance, the agreement was classified as an operating lease which resulted in recording right-of-use assets and lease liabilities of approximately $1.6 million, respectively, as of January 1, 2019. These amounts included approximately $1.6 million of non-current other assets and approximately $0.6 million and $1.3 million of other current liabilities and operating lease liabilities, respectively.

Office Lease — On May 5, 2017, the Company executed an office lease with Russell Ranch Road II LLC for the Company’s corporate headquarters in Westlake Village, California. The office lease commenced in August 2017. The Company agreed to pay initial monthly lease payments of $40,951, subject to 3% annual increases, plus the estimated cost of maintaining the property and common areas by the landlord, with a five month concession from October 2017 through February 2018. The lease also provides for allowances for tenant alterations and maintenance. The lease expires in January 2023 and provides the Company with a five year renewal option. The lease expense is included in selling, general and administrative expenses in the accompanying condensed consolidated statement of operations for three and nine months ended September 30, 2019.

On November 29, 2017, the Company executed an office lease with Russell Ranch Road II LLC to expand the office space for the Company’s corporate headquarters in Westlake Village, California. The office lease commenced in October 2018. The Company agreed to pay initial monthly lease payments of $35,969, subject to 3% annual increases, plus the estimated operating costs of maintaining the property by the landlord, which are allocable based an annual assessment made by the landlord. In addition, the Company received reimbursement from the landlord of $56,325 for tenant improvements and was not required to pay a first-year common area maintenance fee. The lease expires in January 2023 and provides the Company with a five year renewal option.

Upon adoption of the new guidance, this lease was classified as an operating lease which resulted in recording right-of-use assets and lease liabilities of approximately $3.2 million and $3.5 million, respectively, as of January 1, 2019. These amounts included approximately $0.9 million and $2.6 million of other current liabilities and operating lease liabilities, respectively.

Operating lease costs under all operating leases including office space and equipment for the three and nine months ended September 30, 2019 was approximately $0.4 million and $1.1 million, respectively. Cash paid for all operating leases for the three and nine months ended September 30, 2019 was $0.5 million and $1.3 million, respectively. Variable lease costs were approximately $0.1 million and $0.3 million for the three and nine months ended September 30, 2019, respectively. The weighted average discount rate used was 7.5%. The weighted-average remaining lease term for all operating leases is 3.3 years.

Rent expense under all operating leases for the three and nine months ended September 30, 2018 including office space and equipment was approximately $0.1 million and $0.4 million, respectively, prior to the adoption of ASC topic 842.

Future minimum office and vehicle lease payments as of September 30, 2019 and December 31, 2018, are as follows:

	September 30, 2019		December 31, 2018
2019 (Remainder)	$	365,139	$	1,595,421
2020		1,470,217		1,623,835
2021		1,499,484		1,653,101
2022		1,241,089		1,305,096
2023		87,957		87,957
	$	4,663,886	$	6,265,410

The 2018 amounts above are inclusive of office and vehicle lease payments in order to conform to the current year presentation.

Description of Business and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Business

Basis of Presentation

As part of the recapitalization, the Company converted shares of common stock, made repayments on outstanding borrowings, and used some of the proceeds from the MidCap Credit Facility proceeds to:

1)	Fully repay the remaining $5.0 million due on its financing facility with Deerfield Private Design Fund II L.P. and Deerfield Private Design International I L.P.,

Principles of Consolidation

Segment Information

Revenue Recognition

Revenue Recognition - Net Revenue - Commercial Product Sales

Revenue Recognition- Net Revenue - Collaborations and Services

Milestone Payments

Cost of Goods Sold

Restricted Cash

Short-term Investments

Concentration of Credit Risk

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Recognized Loss on Purchase Commitments

Fair Value of Financial Instruments

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

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

Contingencies

Stock-Based Compensation

Clinical Trial Expenses

Net Income or (Loss) Per Share of Common Stock

	Nine months ended September 30,
	2019		2018
Vesting of restricted stock units		1,122,283		1,169,340
Employee stock purchase plan		147,675		97,598
Exercise of common stock options		15,361,337		11,431,526
Conversion of Senior Convertible Notes into common stock		1,666,667		3,629,627
Conversion of Promissory Notes into common stock		14,000,000		21,909,541
Exercise of common stock warrants		31,856		31,856
Exercise of warrants associated with Midcap Credit Facility		1,171,614	—
Exercise of warrants associated with public offering		23,333,333		—
Exercise of warrants associated with direct placement	—			14,000,000
Total shares		56,834,765		52,269,488

Leases

Recently Issued Accounting Standards

Borrowings (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Summary of Carrying Amount of Borrowings

Carrying amount of borrowings consist of the following (in thousands):

	September 30, 2019		December 31, 2018
Deerfield Credit Facility	$	—	$	11,298
Senior convertible notes		9,957		19,099
Midcap Credit Facility		38,798		—
Mann Group promissory notes		70,019		72,089
Total debt - net carrying amount	$	118,774	$	102,486

Schedule of Line of Credit Agreement With a New Secured Lender

Obligation

As of June 30, 2019

As of September 30, 2019

Amount Due

Annual

interest

rate

Maturity

date

Conversion

price

Amount Due

Annual

interest

rate

Maturity

date

Conversion

price

Deerfield Credit Facility

$4.0 million

9.75

July 2019

N/A

—

$5.0 million

9.75

August 2019

N/A

—

MidCap Credit Facility

—

$40.0 million

one-month

LIBOR (2% floor)

plus 6.75%

August 2024

N/A

Senior convertible notes

$18.7 million

5.75

October 2021

$5.15

per share

$5.0 million

5.75%

November 2024

$3.00

per share

June 2020 note

$2.6 million

—

June 2020

N/A

December 2020 notes

$2.6 million

—

December 2020

N/A

Mann Group promissory

convertible note

$80.6 million

(including

accrued

interest

paid-in-kind)

5.84

July 2021

$4.00

per share

$35.0 million

7.00%

November 2024

$2.50

per share

Mann Group promissory

non-convertible note

$35.1 million

7.00%

November 2024

N/A

Schedule of Amortization of Premium and Accretion of Debt Issuance Costs

Amortization of the premium and accretion of debt issuance costs related to all borrowings for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Amortization of debt premium	$	858	$	94	$	1,049	$	244
Amortization of debt discount	$	8	$	375	$	149	$	1,072
Accretion expense - debt issuance cost	$	34	$	22	$	84	$	47

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The following tables set forth the fair value of the Company’s financial instruments (in millions):

	September 30, 2019
	Carrying Value		Significant Unobservable Inputs (Level 3)		Fair Value
Financial liabilities:
June 2020 Note		2.5		2.1		2.1
December 2020 Note		2.4		1.9		1.9
Senior convertible notes		5.0		3.3		3.3
Mann Group Notes		70.0		42.0		42.0
MidCap Credit Facility		38.8		38.1		38.1
Milestone rights		8.9		19.4		19.4
Total financial liabilities	$	127.6	$	106.8	$	106.8

	December 31, 2018
	Carrying Value		Significant Unobservable Inputs (Level 3)		Fair Value
Financial liabilities:
Deerfield Credit Facility	$	11.3	$	11.4	$	11.4
Senior convertible notes		19.1		17.5		17.5
Mann Group Notes		72.1		55.0		55.0
Milestone rights		8.9		18.1		18.1
Total financial liabilities	$	111.4	$	102.0	$	102.0

Description of Business and Significant Accounting Policies - Additional Information (Detail)		1 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Aug. 06, 2019 USD ($) $ / shares	Aug. 31, 2019 USD ($)	Jun. 30, 2019 USD ($) $ / shares	Sep. 30, 2019 USD ($) Contract $ / shares	Dec. 31, 2018 USD ($) Contract	Aug. 05, 2019 $ / shares
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Accumulated deficit				$ (2,977,640,000)	$ (2,940,000,000)
Principal amount				120,100,000
Cash and cash equivalents				30,173,000	71,157,000
Short-term investments				19,885,000
Remaining debt amount				$ 70,019,000	72,089,000
Conversion price of shares \| $ / shares				$ 3.00
(“ASC”) Topic 842 – Leases
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Increase in total assets and total liabilities				$ 5,200,000
Short-term Investments
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Gain (loss) on investments				0
Insulin
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Loss on purchase commitments				$ 89,500,000	$ 98,300,000
Loss on purchase commitments, number of new contracts recognized \| Contract				0	0
Maximum \| AFREZZA product sales
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Sales return right following product expiration in months				12 months
Minimum \| AFREZZA product sales
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Sales return right following product expiration in months				6 months
The Mann Group LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Remaining debt amount			$ 72,000,000
Facility Financing Obligation \| Deerfield
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Repayments of aggregate principal amount				$ 5,000,000
Convertible Promissory Note \| The Mann Group LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount			80,600,000	35,000,000
Repayments of debt				$ 11,000,000
Remaining debt amount			$ 70,100,000
Maturity period, month and year			2021-07
Conversion price of shares \| $ / shares			$ 4.00	$ 2.50
Convertible Promissory Note \| The Mann Group LLC \| New Loan Arrangement
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Maturity period, month and year				2024-11
Conversion price of shares \| $ / shares				$ 2.50		$ 2.50
Non-Convertible Promissory Note \| The Mann Group LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				$ 35,100,000
Non-Convertible Promissory Note \| The Mann Group LLC \| New Loan Arrangement
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				35,100,000
2021 Notes
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				10,200,000
Repayments of aggregate principal amount				8,500,000
June 2020 Note
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				$ 2,600,000
Maturity period, month and year				2020-06
December 2020 Note
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				$ 2,600,000
Maturity period, month and year				2020-12
2024 Convertible Notes
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				$ 5,000,000
Maturity period, month and year				2024-11
Conversion price of shares \| $ / shares	$ 3.00
MidCap Credit Facility
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Principal amount				$ 40,000,000
Principal amount	$ 75,000,000	$ 75,000,000
Amount outstanding				40,000,000
Amount available under credit facility		35,000,000
MidCap Credit Facility \| Tranche 2
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Advance of borrowing	10,000,000	10,000,000
Debt instrument, minimum target net revenue	30,000,000	30,000,000
Minimum cash covenant	15,000,000			15,000,000
MidCap Credit Facility \| Tranche 3
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Advance of borrowing	25,000,000	$ 25,000,000
Minimum cash covenant	$ 20,000,000			$ 20,000,000

Borrowings - MidCap Credit Facility - Additional Information (Detail) - USD ($)		1 Months Ended	9 Months Ended
	Aug. 06, 2019	Aug. 31, 2019	Sep. 30, 2019
Debt Instrument [Line Items]
Unamortized debt issuance costs			$ 800,000
Unamortized debt discount			$ 300,000
Warrants to purchase of common stock	1,171,614
Exercise price of warrants	$ 1.11
Tranche One Warrants
Debt Instrument [Line Items]
Warrants to purchase of common stock	1,171,614
Exercise price of warrants	$ 1.11
MidCap Credit Facility
Debt Instrument [Line Items]
Principal amount	$ 75,000,000	$ 75,000,000
Credit facility, origination fee	$ 400,000
Debt Instrument Exit Fee Percentage	6.00%
Interest on loans increased, percentage	2.00%
Term loan advance percentage of amount drawdown	3.25%
MidCap Credit Facility \| Between First Anniversary and Prior to Second Anniversary of Closing Date
Debt Instrument [Line Items]
Early termination fees, percentage	2.00%
MidCap Credit Facility \| Prior to First Anniversary of Closing Date
Debt Instrument [Line Items]
Early termination fees, percentage	3.00%
MidCap Credit Facility \| After Second Anniversary and Prior to Third Anniversary of Closing Date
Debt Instrument [Line Items]
Early termination fees, percentage	1.00%
MidCap Credit Facility \| LIBOR
Debt Instrument [Line Items]
Interest rate (LIBOR)			6.75%
Interest rate floor			2.00%
Tranche 1 \| MidCap Credit Facility
Debt Instrument [Line Items]
Advance of borrowing	$ 40,000,000
Tranche 1 \| MidCap Credit Facility \| LIBOR
Debt Instrument [Line Items]
Interest rate (LIBOR)	6.75%
Interest rate floor	2.00%
Tranche 2 \| MidCap Credit Facility
Debt Instrument [Line Items]
Advance of borrowing	$ 10,000,000	10,000,000
Debt instrument, minimum target net revenue	30,000,000	30,000,000
Minimum cash covenant	$ 15,000,000		$ 15,000,000
Tranche 2 \| MidCap Credit Facility \| LIBOR
Debt Instrument [Line Items]
Interest rate (LIBOR)	6.75%
Interest rate floor	2.00%
Tranche 3 \| MidCap Credit Facility
Debt Instrument [Line Items]
Advance of borrowing	$ 25,000,000	$ 25,000,000
Debt instrument payment term description	principal on each term loan advance under Tranche 3 is payable beginning on the later of (i) September 1, 2021, and (ii) the first day of the first full calendar month immediately following such term loan advance, in an amount equal to the outstanding term loan advance in respect of Tranche 3 divided by the number of full calendar months remaining before August 1, 2024.
Minimum cash covenant	$ 20,000,000		$ 20,000,000
Tranche 3 \| MidCap Credit Facility \| LIBOR
Debt Instrument [Line Items]
Interest rate (LIBOR)	6.75%
Interest rate floor	2.00%
Tranche 1 and Tranche 2 \| MidCap Credit Facility
Debt Instrument [Line Items]
Debt payable number of equal monthly installments	36
Debt instrument payment term description	principal on each term loan advance under Tranche 3 is payable beginning on the later of (i) September 1, 2021, and (ii) the first day of the first full calendar month immediately following such term loan advance, in an amount equal to the outstanding term loan advance in respect of Tranche 3 divided by the number of full calendar months remaining before August 1, 2024.

Borrowings - Senior Convertible Note - Additional Information (Detail)		3 Months Ended		6 Months Ended	9 Months Ended
	Aug. 06, 2019 USD ($) PromissoryNote d $ / shares shares	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018 USD ($)	Jun. 30, 2019	Sep. 30, 2019 USD ($) $ / shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Senior convertible notes outstanding		$ 9,957,000			$ 9,957,000		$ 19,099,000
Principal amount		$ 120,100,000			$ 120,100,000
Conversion price of shares \| $ / shares		$ 3.00			$ 3.00
Gain (loss) on extinguishment of debt	$ 3,100,000	$ 3,529,000	$ (712,000)		$ 3,529,000	$ (765,000)
Unamortized premium		0			0		400,000
Bruce & Co.,Inc.
Debt Instrument [Line Items]
Principal amount		18,700			18,700
Number of non interest bearing promissory notes \| PromissoryNote	2
2021 Notes
Debt Instrument [Line Items]
Senior convertible notes outstanding		10,000,000			10,000,000		$ 18,700,000
Repayments of aggregate principal amount					8,500,000
Principal amount		10,200,000			10,200,000
2021 Notes \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Senior notes, effective interest rate	5.75%
2021 Notes \| Privately Negotiated Exchange Agreement \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Repayments of aggregate principal amount	$ 1,500,000
Issuance of common stock to note holders \| shares	4,017,857
Exchange price per share \| $ / shares	$ 1.12
2024 Convertible Notes
Debt Instrument [Line Items]
Principal amount		5,000,000			5,000,000
No of convertible shares	333.3333
Principal amount per share \| $ / shares	$ 1,000
Conversion price of shares \| $ / shares	$ 3.00
Debt default, description	If certain bankruptcy and insolvency-related events of default occur, the principal of, and accrued and unpaid interest on, all of the then outstanding 2024 convertible notes shall automatically become due and payable. If an event of default other than certain bankruptcy and insolvency-related events of defaults occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding 2024 convertible notes, by written notice to the Trustee, may declare the 2024 convertible notes due and payable at their principal amount plus any accrued and unpaid interest, and thereupon the Trustee may, at its discretion, proceed to protect and enforce the rights of the holders by the appropriate judicial proceedings. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will, for the first 180 days after such event of default, consist exclusively of the right to receive additional interest on the 2024 convertible notes.
Percentage of repurchase price	100.00%
Debt Instrument, redemption description				MannKind may elect at its option to cause all or any portion of the 2024 convertible notes to be mandatorily converted in whole or in part at any time prior to the close of business on the business day immediately preceding the maturity date, if the last reported sale price of its common stock equals or exceeds 120% of the conversion price then in effect for at least 10 trading days in any 20 trading day period, ending within five business days prior to the date of the mandatory conversion notice.
Percentage of conversion price equaling stock price	120.00%
Number of trading days \| d	10
Consecutive trading days	20 days
2024 Convertible Notes \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Senior notes, effective interest rate	5.75%
Principal amount	$ 5,000,000
Debt instrument, maturity date, description	The 2024 convertible notes will mature on the earlier of (i) November 4, 2024 or (ii) the 91st day after the payment in full of, and termination and discharge of all obligations (other than contingent indemnity obligations) under the MidCap Credit Facility.
2024 Convertible Notes \| Privately Negotiated Exchange Agreement \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Senior notes, effective interest rate	5.75%
June 2020 Note
Debt Instrument [Line Items]
Principal amount		2,600,000			$ 2,600,000
Maturity date					Jun. 30, 2020
June 2020 Note \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Principal amount	$ 2,600,000
Maturity date	Jun. 30, 2020
December 2020 Note
Debt Instrument [Line Items]
Principal amount		$ 2,600,000			$ 2,600,000
Maturity date					Dec. 31, 2020
December 2020 Note \| Bruce & Co.,Inc.
Debt Instrument [Line Items]
Principal amount	$ 2,600,000
Maturity date	Dec. 31, 2020

Borrowings - Mann Group Promissory Notes - Additional Information (Detail)			3 Months Ended		6 Months Ended	9 Months Ended
	Aug. 06, 2019 USD ($)	Aug. 05, 2019 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) $ / shares	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) shares
Debt Instrument [Line Items]
Common stock, shares issued \| shares			206,407,551			206,407,551		187,029,967
Conversion price of shares \| $ / shares			$ 3.00			$ 3.00
Principal amount			$ 120,100,000			$ 120,100,000
Gain (loss) on extinguishment of debt	$ 3,100,000		3,529,000	$ (712,000)		3,529,000	$ (765,000)
Remaining debt amount			70,019,000			70,019,000		$ 72,089,000
The Mann Group LLC
Debt Instrument [Line Items]
Gain (loss) on extinguishment of debt		$ 400,000
Unamortized debt issuance costs and debt discount			$ 0			0		$ 600,000
Remaining debt amount					$ 72,000,000
Accrued interest due to related party					$ 9,100,000
The Mann Group LLC \| Convertible Promissory Note
Debt Instrument [Line Items]
Repayments of debt						$ 11,000,000
Conversion price of shares \| $ / shares			$ 2.50		$ 4.00	$ 2.50
Principal amount			$ 35,000,000		$ 80,600,000	$ 35,000,000
Senior notes, effective interest rate			7.00%		5.84%	7.00%
Maturity date					Jul. 31, 2021	Nov. 30, 2024
Remaining debt amount					$ 70,100,000
The Mann Group LLC \| Non-Convertible Promissory Note
Debt Instrument [Line Items]
Principal amount			$ 35,100,000			$ 35,100,000
Senior notes, effective interest rate			7.00%			7.00%
Maturity date						Nov. 30, 2024
The Mann Group LLC \| New Loan Arrangement \| Convertible Promissory Note
Debt Instrument [Line Items]
Conversion price of shares \| $ / shares		$ 2.50	$ 2.50			$ 2.50
Senior notes, effective interest rate		7.00%
Debt instrument payment term description		quarterly
Debt instrument, date of first required interest payment		Oct. 01, 2019
Maturity date		Nov. 03, 2024
No of convertible shares		400
Principal amount per share \| $ / shares		$ 1,000
The Mann Group LLC \| New Loan Arrangement \| Non-Convertible Promissory Note
Debt Instrument [Line Items]
Principal amount			$ 35,100,000			$ 35,100,000
Senior notes, effective interest rate		7.00%
Debt instrument payment term description		quarterly
Debt instrument, date of first required interest payment		Oct. 01, 2019
Debt instrument, maturity date, description		The Mann Group non-convertible note will mature on the earlier of (i) November 3, 2024 or (ii) the 90th day after the repayment in full, and termination and discharge of all obligations (other than contingent indemnity obligations) under the MidCap Credit Facility. Interest on the Mann Group non-convertible note will be payable in kind by adding the amount thereof to the principal amount; provided that MannKind may, at its option, elect to pay any such interest on any interest payment date, if certain conditions are met, in shares of MannKind’s common stock at a price per shall equal to the last reported sale price on the trading day immediately prior to the interest payment date.
The Mann Group LLC \| Privately Negotiated Exchange Agreement
Debt Instrument [Line Items]
Repayments of debt		$ 3,000,000
Common stock, shares issued \| shares		7,142,857
Conversion price of shares \| $ / shares		$ 1.12
Conversion of notes to common shares, value		$ 71,500,000
Accrued Paid-in-Kind Interest		9,500,000
The Mann Group LLC \| Privately Negotiated Exchange Agreement \| New Loan Arrangement \| Convertible Promissory Note
Debt Instrument [Line Items]
Principal amount		35,000,000
The Mann Group LLC \| Privately Negotiated Exchange Agreement \| New Loan Arrangement \| Non-Convertible Promissory Note
Debt Instrument [Line Items]
Principal amount		$ 35,100,000

Collaborations and Licensing Arrangements - Additional Information (Detail) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 29, 2019	Dec. 30, 2016	May 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Oct. 31, 2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue recognized from collaborations and services				$ 14,595,000	$ 4,469,000	$ 47,045,000	$ 11,827,000
Deferred revenue - current				32,212,000		32,212,000		$ 36,885,000
Deferred revenue - long term				2,631,000		2,631,000		10,680,000
Commercial product sales
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue recognized from collaborations and services				6,402,000	4,387,000	17,543,000	11,542,000
Collaboration and License Agreement \| Receptor
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue				400,000		400,000
Proceeds from signing fees and upfront license fees		$ 1,300,000
Collaboration and License Agreement \| United Therapeutics Corporation
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment received									$ 45,000,000
Milestone Payment Received	$ 12,500,000
Revenue recognized from collaborations and services				7,900,000		23,300,000
Deferred revenue				32,200,000		32,200,000
Deferred revenue - current				31,500,000		31,500,000
Deferred revenue - long term				700,000		700,000
Total transaction price				100,400,000		100,400,000
Collaboration and License Agreement \| United Therapeutics Corporation \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Potential milestone payments to be receive				37,500,000		37,500,000
Additional option exercise and development milestone payments to be receive				40,000,000		40,000,000
Research Agreement \| United Therapeutics Corporation
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Upfront payment received					$ 10,000,000		$ 10,000,000
Revenue recognized from collaborations and services				200,000		5,900,000
Deferred revenue - current				400,000		400,000
Total transaction price				10,000,000		10,000,000
Research Agreement \| United Therapeutics Corporation \| Product Prototype
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total transaction price				9,000,000		$ 9,000,000
Revenue performance obligation, method used						The revenue for the product prototype is recognized using an output method (based on project milestones achieved and surveys of performance completed to date). The Company believes that this method best reflects the measure of progress toward complete satisfaction of the performance obligation.
Research Agreement \| United Therapeutics Corporation \| Engineering Consulting Services
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total transaction price				1,000,000		$ 1,000,000
Revenue performance obligation, method used						The revenue for the engineering consulting services is recognized using a ratable method until the obligation is satisfied and the Company believes that this method best reflects the measure of progress toward complete satisfaction of the performance obligation.
Research Agreement \| United Therapeutics Corporation \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Potential milestone payments to be receive				30,000,000		$ 30,000,000
License and Distribution Agreement \| Foreign Country \| India Tax Authority
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Income Taxes Paid								$ 200,000
License and Distribution Agreement \| Cipla Ltd
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue				2,000,000		2,000,000
Deferred revenue - current				$ 100,000		100,000
Marketing and distribution agreement date			2018-05
Supply and Distribution Agreement \| Commercial product sales \| Biomm
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Revenue recognized from collaborations and services						$ 700,000

Fair Value of Financial Instruments - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Of Financial Instruments [Line Items]
Cash and cash equivalents	$ 30,173,000	$ 71,157,000
Restricted cash	316,000	$ 527,000
Short-term investments	$ 19,885,000
Fair value of note payable to related party, description	The fair value measurement of debt instruments is based on a discounted cash flow model and is sensitive to the change in yield (Level 3 in the fair value hierarchy
Embedded derivatives	$ 0
MidCap Credit Facility
Fair Value Of Financial Instruments [Line Items]
Fair value of note payable to related party, description	MidCap credit facility - If the yield increases by approximately 1% from 11.5% to 12.5%, the fair value of the notes payable would change from $38.1 million to $37.1 million, or a decrease of $1.0 million or 2.7%; if the yield decreases 1% from 11.5% to 10.5%, the fair value of the note payable with conversion feature would change from $38.1 million to $39.1 million, or an increase of $1.0 million or 2.6%. If the yield increases by approximately 2% from 11.5% to 13.5%, the fair value of the note payable with the conversion feature would change from $38.1 million to $36.2 million, or a decrease of $1.9 million or 5.0%; if the yield decreases 2% from 11.5% to 9.5%, the fair value of the note payable with conversion feature would change from $38.1 million to $40.2 million, or an increase of $2.1 million or 5.5%.
Mann Group Notes
Fair Value Of Financial Instruments [Line Items]
Fair value of note payable to related party, description	Mann Group Notes — If the yield increases by approximately 2% from 31% to 33%, the fair value of the notes payable would change from $42.0 million to $40.1 million, or a decrease of $1.9 million or 4.5%; if the yield decreases 2% from 31% to 29%, the fair value of the note payable with conversion feature would change from $42.0 million to $44.1 million, or an increase of $2.1 million or 5.0%. If the yield increases by approximately 4% from 31% to 35%, the fair value of the note payable with the conversion feature would change from $42.0 million to $38.4 million, or a decrease of $3.6 million or 8.6%; if the yield decreases 4% from 31% to 27%, the fair value of the note payable with conversion feature would change from $42.0 million to $46.4 million, or an increase of $4.4 million or 10.5%.
Senior Convertible Notes
Fair Value Of Financial Instruments [Line Items]
Fair value of note payable to related party, description	Senior Convertible Notes – If the yield increases by approximately 2% from 31% to 33%, the fair value of the notes payable would change from $7.3 million to $7.1 million, or a decrease of $0.2 million and 2.7%; if the yield decreases 2% from 31% to 29%, the fair value of the note payable with conversion feature would change from 7.3 million to $7.5 million, or an increase of $0.2 million or 2.7%. If the yield increases by approximately 4% from 31% to 35%, the fair value of the note payable with the conversion feature would change from $7.3 million to $7.0 million, or a decrease of $0.3 million or 4.1%; if the yield decreases 4% from 31% to 27%, the fair value of the note payable with conversion feature would change from $7.3 million to $7.7 million, or an increase of 0.4 million and 5.5%.
Note Payable Yield Changes 1 \| MidCap Credit Facility
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	1.00%
Note payable, percentage of yield	0.125	0.115
Note payable to related party, fair value	$ 37,100,000	$ 38,100,000
Change in fair value of note payable value due to change in interest rate percentage	$ 1,000,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	2.70%
Note Payable Yield Changes 1 \| Mann Group Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)		2.00%
Note payable, percentage of yield	0.33	0.31
Note payable to related party, fair value	$ 40,100,000	$ 42,000,000
Change in fair value of note payable value due to change in interest rate percentage	$ 1,900,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	4.50%
Note Payable Yield Changes 1 \| Senior Convertible Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	2.00%
Note payable, percentage of yield	0.33	0.31
Note payable to related party, fair value	$ 7,100,000	$ 7,300,000
Change in fair value of note payable value due to change in interest rate percentage	$ 200,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	2.70%
Note Payable Yield Changes 2 \| MidCap Credit Facility
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	1.00%
Note payable, percentage of yield	0.105	0.115
Note payable to related party, fair value	$ 39,100,000	$ 38,100,000
Change in fair value of note payable value due to change in interest rate percentage	$ 1,000,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	2.60%
Note Payable Yield Changes 2 \| Mann Group Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	2.00%
Note payable, percentage of yield	0.29	0.31
Note payable to related party, fair value	$ 44,100,000	$ 42,000,000
Change in fair value of note payable value due to change in interest rate percentage	$ 2,100,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	5.00%
Note Payable Yield Changes 2 \| Senior Convertible Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	2.00%
Note payable, percentage of yield	0.29	0.31
Note payable to related party, fair value	$ 7,500,000	$ 7,300,000
Change in fair value of note payable value due to change in interest rate percentage	$ 200,000	$ 200,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	2.70%	2.70%
Note Payable Yield Changes 3 \| MidCap Credit Facility
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	2.00%
Note payable, percentage of yield	0.135	0.115
Note payable to related party, fair value	$ 36,200,000	$ 38,100,000
Change in fair value of note payable value due to change in interest rate percentage	$ 1,900,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	5.00%
Note Payable Yield Changes 3 \| Mann Group Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	4.00%
Note payable, percentage of yield	0.35	0.31
Note payable to related party, fair value	$ 38,400,000	$ 42,000,000
Change in fair value of note payable value due to change in interest rate percentage	$ 3,600,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	8.60%
Note Payable Yield Changes 3 \| Senior Convertible Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	4.00%
Note payable, percentage of yield	0.35	0.31
Note payable to related party, fair value	$ 7,000,000	$ 7,300,000
Change in fair value of note payable value due to change in interest rate percentage	$ 300,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	4.10%
Note Payable Yield Changes 4 \| MidCap Credit Facility
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	2.00%
Note payable, percentage of yield	0.095	0.115
Note payable to related party, fair value	$ 40,200,000	$ 38,100,000
Change in fair value of note payable value due to change in interest rate percentage	$ 2,100,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	5.50%
Note Payable Yield Changes 4 \| Mann Group Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	4.00%
Note payable, percentage of yield	0.27	0.31
Note payable to related party, fair value	$ 46,400,000	$ 42,000,000
Change in fair value of note payable value due to change in interest rate percentage	$ 4,400,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	10.50%
Note Payable Yield Changes 4 \| Senior Convertible Notes
Fair Value Of Financial Instruments [Line Items]
Note payable, percentage of interest rate increases (decreases)	4.00%
Note payable, percentage of yield	0.27	0.31
Note payable to related party, fair value	$ 7,700,000	$ 7,300,000
Change in fair value of note payable value due to change in interest rate percentage	$ 400,000
Increase (decrease) in fair value of note payable percentage due to increases (decreases) in interest rate percentage	5.50%
Money Market Funds
Fair Value Of Financial Instruments [Line Items]
Cash and cash equivalents	$ 30,200,000	71,200,000
Restricted cash	300,000	$ 500,000
U.S. Treasury bills or notes.
Fair Value Of Financial Instruments [Line Items]
Short-term investments	$ 19,900,000

Commitments and Contingencies - Additional Information (Detail) $ / shares in Units, € in Millions									3 Months Ended		9 Months Ended
	Dec. 15, 2019 USD ($)	Sep. 15, 2019 USD ($)	Aug. 02, 2019 USD ($)	Jul. 18, 2019 USD ($) shares	Jul. 01, 2019	Dec. 19, 2018 USD ($) shares	Nov. 29, 2017 USD ($)	May 05, 2017 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2018 USD ($) Vehicle	Sep. 30, 2019 USD ($) Vehicle	Sep. 30, 2019 EUR (€)	Aug. 06, 2019 $ / shares shares	Jun. 30, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 26, 2018 $ / shares shares	Jul. 01, 2013 USD ($)
Commitments And Contingencies [Line Items]
Purchase obligation extended term			2 years
Payment of long term purchase commitment, amendment fees		$ 1,500,000
Supply Agreement expiration period											Dec. 31, 2026
Supply Agreement renewal period											2 years
Foreign currency hedging transaction period					90 days
Purchase requirement amount for remaining current year \| €												€ 1.9
Warrants to purchase of common stock \| shares													1,171,614
Exercise price of warrants \| $ / shares													$ 1.11
Exercise price of warrants \| $ / shares													$ 1.11
Operating lease, non-current liabilities									$ 2,746,000		$ 2,746,000
Operating lease costs									400,000		1,100,000
Operating lease, cash paid									500,000		1,300,000
Variable lease costs									$ 100,000		$ 300,000
Operating lease, weighted average discount rate									7.50%		7.50%	7.50%
Operating lease, weighted-average remaining lease term									3 years 3 months 18 days		3 years 3 months 18 days	3 years 3 months 18 days
Vehicle Leases \| Lease Agreement with Enterprise
Commitments And Contingencies [Line Items]
Number of vehicle leases \| Vehicle										119	90
Operating lease rent expenses										$ 83,000	$ 72,000
Number of vehicle leases removed \| Vehicle											29
Gain or loss recorded for leases removed											$ 0
Lease expiration date										48 months
Reduction in operating lease right-of-use assets														$ 600,000
Reduction in operating lease liabilities														600,000
Operating lease right-of-use assets															$ 1,600,000
Operating lease liabilities									$ 1,300,000		1,300,000				1,600,000
Operating lease, current assets									1,600,000		1,600,000
Operating lease, other current liabilities									600,000		600,000
Underwriting Agreement
Commitments And Contingencies [Line Items]
Stock purchase agreements date						Dec. 26, 2018
Warrant expiration date						Dec. 26, 2019
Underwriting Agreement \| Common Stock
Commitments And Contingencies [Line Items]
Number of shares sold in underwritten public offering \| shares						26,666,667
Amount of net proceeds from issuance of securities						$ 37,300,000
Exchange price per share \| $ / shares																$ 1.50
Underwriting Agreement \| Warrants
Commitments And Contingencies [Line Items]
Warrants to purchase of common stock \| shares																26,666,667
Exercise price of warrants \| $ / shares																$ 1.60
Repurchase of common stock , shares \| shares				3,333,334
Repurchase of common stock , value				$ 400,000
Shares reserved for future issuance \| shares				23,333,333
Exercise price of warrants \| $ / shares																$ 1.60
Cost of Goods Sold
Commitments And Contingencies [Line Items]
Purchase commitments, amendment fees			$ 2,750,000
Scenario Forecast
Commitments And Contingencies [Line Items]
Purchase commitments, amendment fees	$ 1,250,000
Deerfield \| Milestone Rights Liability
Commitments And Contingencies [Line Items]
Contingent liability for milestone payments														75,000,000
Deerfield \| Milestone Rights Liability \| Maximum
Commitments And Contingencies [Line Items]
Contingent liability for milestone payments														$ 90,000,000			$ 90,000,000
Russell Ranch Road II LLC \| Office Lease
Commitments And Contingencies [Line Items]
Operating lease rent expenses							$ 35,969
Operating lease right-of-use assets															3,200,000
Operating lease liabilities															3,500,000
Operating lease rent expenses								$ 40,951	$ 100,000		$ 400,000
Percentage of annual increase in lease payment							3.00%	3.00%
Lease expiration date							Jan. 31, 2023	Jan. 31, 2023
Lease renewal option							5 years	5 years
Reimbursement amount received for tenant improvements							$ 56,325
Operating lease, current liabilities															900,000
Operating lease, non-current liabilities															$ 2,600,000

Schedule of Potentially Dilutive Common Stock Equivalent Securities (Detail) - shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	56,834,765	52,269,488
Vesting of Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1,122,283	1,169,340
Conversion of Senior Convertible Notes into Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1,666,667	3,629,627
Conversion of Promissory Notes into Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	14,000,000	21,909,541
Exercise of Common Stock Warrants
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	31,856	31,856
Employee Stock Purchase Plan
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	147,675	97,598
Exercise of Common Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	15,361,337	11,431,526
Exercise of Warrants Associated with Midcap Credit Facility
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	1,171,614
Exercise of Warrants Associated with Public Offering
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	23,333,333
Exercise of Warrants Associated with Direct Placement
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share		14,000,000

Schedule of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable, gross	$ 6,364	$ 5,198
Wholesaler distribution fees and prompt pay discounts	(1,358)	(868)
Reserve for returns	(913)	(313)
Accounts receivable, net	$ 4,093	$ 4,017

Accounts Receivable - Additional Information (Detail) - Distributor	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Receivables [Abstract]
Number of wholesale distributors	3	3
Percentage of accounts receivable from major wholesale distributors	98.00%	89.00%

Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 986	$ 1,337
Work-in-process	1,675	1,605
Finished goods	1,031	655
Total inventory	$ 3,692	$ 3,597

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 128,758	$ 126,099
Less accumulated depreciation	(101,632)	(100,497)
Total property and equipment, net	27,126	25,602
Land
Property Plant And Equipment [Line Items]
Total property and equipment, gross	875	875
Buildings
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 17,389	17,389
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]
Total property and equipment, gross	$ 37,543	34,967
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]
Total property and equipment, gross	$ 61,575	61,217
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]
Total property and equipment, gross	$ 3,004	2,954
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]
Total property and equipment, gross	$ 8,355	8,355
Estimated Useful Life (Years)	3 years
Construction in Progress
Property Plant And Equipment [Line Items]
Total property and equipment, gross	$ 17	$ 342

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	280,000,000	280,000,000
Common stock, shares issued	206,407,551	187,029,967
Common stock, shares outstanding	206,407,551	187,029,967

Description of Business and Significant Accounting Policies - Additional Information (Detail 1)	Sep. 30, 2019
Collaborations and services \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Remaining performance obligation, Expected timing of satisfaction, period	12 months

Inventories - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
Inventories - Additional Information (Detail) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Inventory Disclosure [Abstract]
Write-off of inventory	$ 0	$ 1,000,000	$ 0	$ 1,792,000

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accrued Expenses And Other Current Liabilities [Abstract]
Salary and related expenses	$ 7,563	$ 8,110
Discounts and allowances for commercial product sales	3,009	2,656
Deferred lease liability	1,407	257
Current portion of Milestone Rights liability		1,643
Accrued repairs and maintenance	798
Professional fees	607	741
Sales and marketing services	223	88
Accrued interest	319	492
Other	372	1,035
Total accrued expenses and other current liabilities	$ 14,298	$ 15,022

Loan Arrangement with Former Related Party - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Feb. 29, 2016	Sep. 30, 2019	Oct. 22, 2019	Jun. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Common stock, shares outstanding		206,407,551			187,029,967
Remaining debt amount		$ 70,019			$ 72,089
Promissory notes		70,019			$ 72,089
The Mann Group LLC
Related Party Transaction [Line Items]
Remaining debt amount				$ 72,000
Accrued interest due to related party				$ 9,100
Promissory notes		$ 70,000
The Mann Group LLC \| Loan Arrangement
Related Party Transaction [Line Items]
Trustee substantial portion disposed term	3 years
Additional common stock shares reserved for issuance		14,000,000
The Mann Group LLC \| Loan Arrangement \| Subsequent Event
Related Party Transaction [Line Items]
Common stock, shares outstanding			9,200,000
The Mann Group LLC \| Loan Arrangement \| Common Stock
Related Party Transaction [Line Items]
Written notice period		65 days
The Mann Group LLC \| Loan Arrangement \| Maximum \| Subsequent Event
Related Party Transaction [Line Items]
Percentage of common stock shares outstanding			5.00%
The Mann Group LLC \| Loan Arrangement \| Maximum \| Common Stock
Related Party Transaction [Line Items]
Percentage of beneficially own in excess		19.99%
The Mann Group LLC \| Loan Arrangement \| Minimum \| Common Stock
Related Party Transaction [Line Items]
Percentage of beneficially own in excess		9.99%
Mr.Mann \| Loan Arrangement \| Common Stock
Related Party Transaction [Line Items]
Percentage of beneficial interest owned	36.00%

Summary of Carrying Amount of Borrowings (Detail) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Senior convertible notes	$ 9,957	$ 19,099
Mann Group promissory notes	70,019	72,089
Total debt - net carrying amount	118,774	102,486
Deerfield Credit Facility
Debt Instrument [Line Items]
Credit Facility		$ 11,298
MidCap Credit Facility
Debt Instrument [Line Items]
Credit Facility	$ 38,798

Borrowings - Deerfield Facility Financing Obligation - Additional Information (Detail) - USD ($)		9 Months Ended	12 Months Ended	24 Months Ended
	Jul. 18, 2019	Sep. 30, 2019	Dec. 31, 2014	Dec. 31, 2014	Jun. 30, 2019	Dec. 31, 2018	Jul. 01, 2013
Debt Instrument [Line Items]
Principal amount		$ 120,100,000
Common stock, shares issued		206,407,551				187,029,967
2019 notes
Debt Instrument [Line Items]
Unamortized debt issuance costs and debt discount		$ 0				$ 200,000
Deerfield \| 2019 notes
Debt Instrument [Line Items]
Principal amount							$ 160,000,000
Senior notes, effective interest rate		9.75%
Conversion of notes to common shares, value	$ 1,600,000
Debt instrument, remaining borrowing capacity		$ 60,000,000
Repayments of aggregate principal amount	$ 2,400,000
Common stock, shares issued	1,514,423
Deerfield \| Facility Financing Obligation
Debt Instrument [Line Items]
Conversion of notes to common shares, value				$ 100,000,000
Repayments of aggregate principal amount		$ 5,000,000
Deerfield \| Tranche B notes
Debt Instrument [Line Items]
Senior notes, effective interest rate		8.75%
Debt instrument additional borrowing capacity			$ 20,000,000
Debt instrument, remaining borrowing capacity		$ 20,000,000
Deerfield \| Facility Financing Obligation
Debt Instrument [Line Items]
Principal amount					$ 9,000,000
Debt instrument, remaining borrowing capacity		$ 80,000,000

Collaborations and Licensing Arrangements - Additional Information (Detail 1) - USD ($) $ in Millions	May 31, 2018	Dec. 31, 2016
Collaboration and License Agreement \| Receptor \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2017-01-01
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue - nonrefundable license fee		$ 1.0
Deferred revenue recognition period		4 years
License and Distribution Agreement \| Cipla Ltd \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-06-01
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue - nonrefundable license fee	$ 2.2
Deferred revenue recognition period	15 years

Fair Value of Financial Instruments (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Financial liabilities:
Financial liabilities fair value	$ 106,800	$ 102,000
MidCap Credit Facility
Financial liabilities:
Financial liabilities fair value	38,100
Deerfield Credit Facility
Financial liabilities:
Financial liabilities fair value		11,400
June 2020 Note
Financial liabilities:
Financial liabilities fair value	2,100
Senior Convertible Notes
Financial liabilities:
Financial liabilities fair value	3,300	17,500
December 2020 Note
Financial liabilities:
Financial liabilities fair value	1,900
Milestone Rights Liability
Financial liabilities:
Financial liabilities fair value	19,400	18,100
Mann Group Notes
Financial liabilities:
Financial liabilities fair value	42,000	55,000
Carrying Value
Financial liabilities:
Financial liabilities fair value	127,600	111,400
Carrying Value \| MidCap Credit Facility
Financial liabilities:
Financial liabilities fair value	38,800
Carrying Value \| Deerfield Credit Facility
Financial liabilities:
Financial liabilities fair value		11,300
Carrying Value \| June 2020 Note
Financial liabilities:
Financial liabilities fair value	2,500
Carrying Value \| Senior Convertible Notes
Financial liabilities:
Financial liabilities fair value	5,000	19,100
Carrying Value \| December 2020 Note
Financial liabilities:
Financial liabilities fair value	2,400
Carrying Value \| Milestone Rights Liability
Financial liabilities:
Financial liabilities fair value	8,900	8,900
Carrying Value \| Mann Group Notes
Financial liabilities:
Financial liabilities fair value	70,000	72,100
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	106,800	102,000
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 3 \| MidCap Credit Facility
Financial liabilities:
Financial liabilities fair value	38,100
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 3 \| Deerfield Credit Facility
Financial liabilities:
Financial liabilities fair value		11,400
Estimate of Fair Value Measurement \| June 2020 Note \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	2,100
Estimate of Fair Value Measurement \| Senior Convertible Notes \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	3,300	17,500
Estimate of Fair Value Measurement \| December 2020 Note \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	1,900
Estimate of Fair Value Measurement \| Milestone Rights Liability \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	19,400	18,100
Estimate of Fair Value Measurement \| Mann Group Notes \| Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	$ 42,000	$ 55,000

Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) $ / shares shares
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate number of shares granted to awards, share-based compensation arrangements \| shares	145,600	5,478,903
Weighted average exercise price of the stock options granted \| $ / shares	$ 1.12	$ 1.32
Vesting period	4 years	4 years
Fair value of stock granted, share-based compensation arrangements	$ 0.1	$ 6.0
Weighted average grant date fair value of the stock options granted \| $ / shares	$ 0.66	$ 1.10
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense related to non-options	$ 1.1	$ 1.1
Options vest over vesting period
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense related to options	$ 11.1	$ 11.1

Restructure Annual Purchase Commitments under Amphastar Amendment (Detail) - EUR (€) € in Millions	Aug. 02, 2019	Jun. 30, 2019
Purchase Obligation Fiscal Year Maturity [Abstract]
2019		€ 2.3
2020	€ 6.6	15.9
2021	6.6	15.9
2022	8.5	19.8
2023	10.9	19.8
2024	14.6	€ 8.6
2025	15.5
2026	€ 19.4

Schedule of Future Minimum Office And Vehicle Lease Payments (Detail) - office and vehicle - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Commitments And Contingencies [Line Items]
2019 (Remainder)	$ 365,139
2020	1,470,217
2021	1,499,484
2022	1,241,089
2023	87,957
Total	$ 4,663,886
2019		$ 1,595,421
2020		1,623,835
2021		1,653,101
2022		1,305,096
2023		87,957
Total		$ 6,265,410

Subsequent Event - Additional Information (Detail) - Collaboration and License Agreement - United Therapeutics Corporation - USD ($)	Nov. 04, 2019	Mar. 29, 2019	Sep. 30, 2019
Subsequent Event [Line Items]
Milestone Payment Received		$ 12,500,000
Maximum
Subsequent Event [Line Items]
Potential milestone payments to be receive			$ 37,500,000
Subsequent Event
Subsequent Event [Line Items]
Milestone Payment Received	$ 12,500,000
Subsequent Event \| Maximum
Subsequent Event [Line Items]
Potential milestone payments to be receive	$ 25,000,000