MannKind Corporation Reports 2015 First Quarter Financial Results
May 07 2015 - 6:48PM
MannKind Corporation (Nasdaq:MNKD) today reported
financial results for the first quarter ended March 31, 2015.
For the first quarter of 2015, total operating expenses were
$21.7 million, a decline of 47.5% compared to the similar quarter
in 2014. Research and development expenses were $9.4 million, a
decline of 64.2% compared to the first quarter of 2014, reflecting
the commercialization of Afrezza in the first quarter of 2015 and a
reduction in non-cash stock compensation expense. General and
administrative expenses were $10.5 million, a decline of 31.2%
compared to the first quarter of 2014, mainly reflecting lower
non-cash stock compensation expenses.
For the quarter ended March 31, 2015, our portion of the loss
sharing arrangement with Sanofi related to Afrezza was $12.4
million, which we financed by way of an advance under the loan
facility with our partner. The amount outstanding under the Sanofi
loan facility is now $15.4 million. During the three months ending
on March 31, 2015, we recorded $7.1 million in Afrezza product
shipments as deferred product sales from our collaboration with
Sanofi.
The net loss for the first quarter of 2015 was $30.7 million, or
$0.08 per share based on 398.9 million weighted average shares
outstanding, compared with a net loss of $52.1 million, or $0.14
per share based on 368.8 million weighted average shares
outstanding for the first quarter of 2014. The number of common
shares outstanding at March 31, 2015 was 409.1 million.
Cash and cash equivalents remained at $120.8 million at March
31, 2015 and at December 31, 2014, respectively. During the first
quarter of 2015, we also received a $50.0 million milestone payment
related to our collaboration agreement with Sanofi as well as $6.2
million in proceeds from warrant and option exercises. This cash
inflow offset our first quarter operating activities, which
included building up Afrezza product inventory, purchasing
additional machinery and equipment related to the commercialization
of Afrezza and the pursuit of new product opportunities. Currently,
$30.1 million remains in available borrowings under the amended
loan arrangement with The Mann Group.
Conference Call
MannKind management will host a conference call to discuss these
results tomorrow, May 8, 2015 at 9:00 a.m. Eastern Time. To
participate in the call please dial (800) 708-4540 or (847)
619-6397 and use the participant passcode: 3859 3126. Those
interested in listening to the conference call live via the
Internet may do so by visiting the Company's website at
http://www.mannkindcorp.com.
A telephone replay will be accessible for approximately 14 days
following completion of the call by dialing (888) 843-7419 or (630)
652-3042 and use the participant passcode: 3859 3126#. A
replay will also be available on MannKind's website for 14
days.
About MannKind Corporation
MannKind Corporation (Nasdaq:MNKD) focuses on the discovery and
development and commercialization of therapeutic products for
patients with diseases such as diabetes. MannKind maintains a
website at http://www.mannkindcorp.com to which MannKind regularly
posts copies of its press releases as well as additional
information about MannKind. Interested persons can subscribe on the
MannKind website to e-mail alerts that are sent automatically when
MannKind issues press releases, files its reports with the
Securities and Exchange Commission or posts certain other
information to the website.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. Words such as "believes",
"anticipates", "plans", "expects", "intend", "will", "goal",
"potential" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are
based upon the Company's current expectations. Actual results and
the timing of events could differ materially from those anticipated
in such forward-looking statements as a result of these risks and
uncertainties, which include, without limitation, difficulties or
delays in obtaining regulatory feedback or completing and analyzing
the results of clinical studies, MannKind's ability to manage its
existing cash resources or raise additional cash resources, stock
price volatility and other risks detailed in MannKind's filings
with the Securities and Exchange Commission, including the Annual
Report on Form 10-K for the year ended December 31, 2014 and Form
8-K. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement, and MannKind
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
(Tables to follow)
MannKind
Corporation |
Condensed Consolidated
Statements of Operations |
(Unaudited) |
(In thousands) |
|
|
|
|
Three months
ended March 31, |
|
2015 |
2014 |
|
|
|
Revenue |
$ — |
$ — |
|
|
|
Operating expenses: |
|
|
Research and
development |
9,377 |
26,182 |
General and
administrative |
10,479 |
15,229 |
Product
manufacturing |
1,882 |
— |
|
|
|
Total operating
expenses |
21,738 |
41,411 |
|
|
|
Loss from operations |
(21,738) |
(41,411) |
Other income (expense) |
1,413 |
(5,890) |
Interest expense on note payable to principal
stockholder |
(714) |
(714) |
Interest expense on notes |
(9,622) |
(4,042) |
Interest income |
3 |
1 |
|
|
|
Net loss |
$ (30,658) |
$ (52,056) |
|
|
|
Net loss per share — basic and
diluted |
$ (0.08) |
$ (0.14) |
|
|
|
Shares used to compute basic and diluted net
loss per share |
398,916 |
368,784 |
|
MannKind
Corporation |
Condensed Consolidated
Balance Sheet |
(Unaudited) |
(in thousands) |
|
|
|
|
March 31, 2015 |
December 31,
2014 |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 120,844 |
$ 120,841 |
Receivables from
collaboration |
4,282 |
50,436 |
Inventory |
16,789 |
9,670 |
Prepaid expenses and other
current assets |
16,375 |
20,206 |
Total current assets |
158,290 |
201,153 |
Property and equipment — net |
193,454 |
192,127 |
Deferred product costs from
collaboration |
6,251 |
— |
Other assets |
2,027 |
1,159 |
Total |
$ 360,022 |
$ 394,439 |
|
|
|
Liabilities and Stockholders'
Deficit |
|
|
|
|
|
Accounts payable |
$ 3,302 |
$ 7,394 |
Accrued expenses and other current
liabilities |
12,381 |
26,206 |
Facility financing obligation |
73,368 |
72,995 |
Senior convertible notes |
99,593 |
99,355 |
Deferred product sales from
collaboration |
7,050 |
— |
Deferred payments from collaboration |
185,059 |
197,403 |
Current liabilities |
380,753 |
403,353 |
Note payable to related party |
49,521 |
49,521 |
Other liabilities |
26,779 |
15,335 |
Stockholders' deficit |
(97,031) |
(73,770) |
Total |
$ 360,022 |
$ 394,439 |
CONTACT: Company Contact:
Matthew J. Pfeffer
Chief Financial Officer
661-775-5300
mpfeffer@mannkindcorp.com
MannKind (NASDAQ:MNKD)
Historical Stock Chart
From Mar 2024 to Apr 2024
MannKind (NASDAQ:MNKD)
Historical Stock Chart
From Apr 2023 to Apr 2024