MannKind Corporation Reports 2013 Fourth Quarter and Full Year Financial Results Conference Call to Begin Today at 5:00 PM ET VALENCIA, Calif., Feb. 18, 2014 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) today reported financial results for the fourth quarter and full year ended December 31, 2013. For the fourth quarter of 2013, total operating expenses were $46.6 million, compared to $33.5 million for the fourth quarter of 2012, an increase of $13.1 million. Research and development (R&D) expenses were $29.0 million for the fourth quarter of 2013, compared to $25.3 million for the corresponding quarter in 2012, due to an increase in non-cash stock compensation expense of $4.3 million that was offset by a decrease in clinical trial related expenses of $1.3 million. General and administrative (G&A) expenses increased by $9.4 million to $17.6 million for the fourth quarter of 2013, compared to $8.2 million in the fourth quarter of 2012. The increase in G&A expenses was due to an increase in non-cash stock compensation expense of $6.0 million and increased professional legal and financing fees of $2.2 million as compared to the corresponding quarter of the prior year. Non-cash stock compensation expense results from vesting of stock awards over time and upon achievement of specific regulatory and business development milestones related to AFREZZA. For fiscal year 2013, operating expenses totaled $169.4 million, compared to $147.0 million for fiscal year 2012. Total R&D expenses for fiscal year 2013 increased by $8.2 million, or 8.1%, to $109.7 million for fiscal year 2013 as compared to $101.5 million for fiscal year 2012, due to an increase in non-cash stock compensation expense of $14.2 million that was offset by a decrease in clinical trial related expense in 2013. G&A expenses increased by $14.2 million, or 31.2%, to $59.7 million for fiscal year 2013 as compared to $45.5 million in fiscal year 2012, due to increased non-cash stock compensation expense of $17.7 million and increased professional legal and financing fees of $2.3 million in 2013 that was offset by the $6.5 million litigation settlement accrual recorded in 2012. The net loss applicable to common stockholders for fiscal year 2013 was $(191.5) million, or $(0.64) per share based on 299.6 million weighted average shares outstanding, compared with a net loss applicable to common stockholders of $(169.4) million, or $(0.94) per share based on 180.9 million weighted average shares outstanding for fiscal year 2012. The number of common shares outstanding at December 31, 2013 was 369,391,972. Cash and cash equivalents were $70.8 million at December 31, 2013 and $61.8 million at December 31, 2012. Currently, there is $30.1 million of available borrowings under the amended loan arrangement with The Mann Group. Conference Call MannKind management will host a conference call to discuss these results today at 5:00 p.m. Eastern Time. To participate in the call please dial (800) 708-4540 or (847) 619-6397 and use the participant passcode: 36435002. 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: 3643 5002#. A replay will also be available on MannKind's website for 14 days. About MannKind Corporation MannKind Corporation (Nasdaq:MNKD) focuses on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes. Its lead product candidate, AFREZZA®, has completed Phase 3 clinical trials. 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, 2012 and periodic reports on Form 10-Q 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 (A Development Stage Company) Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Cumulativeperiod Three months ended Twelve months ended from February14, December 31, December 31, 1991 (date of inception) to December 31, 2013 2012 2013 2012 2013 Revenue $— $— $— $35 $3,166 Operating expenses: Research and 28,988 25,275 109,719 101,522 1,577,292 development General and 17,629 8,211 59,682 45,473 485,386 administrative In-process research and — — — — 19,726 development costs Goodwill — — — — 151,428 impairment Total operating 46,617 33,486 169,401 146,995 2,233,832 expenses Loss from (46,617) (33,486) (169,401) (146,960) (2,230,666) operations Other income (683) (13,269) (635) (1,191) (2,902) (expense) Interest expense on note (1,185) (2,170) (6,309) (10,491) (45,134) payable to related party Interest expense on senior convertible (5,101) (2,861) (15,153) (11,139) (55,086) notes and facility financing obligation Interest 4 5 8 7 37,004 income Loss before benefit for (53,582) (51,781) (191,490) (169,774) (2,296,784) income taxes Income tax — — — 408 382 benefit Net loss (53,582) (51,781) (191,490) (169,366) (2,296,402) Deemed dividend related to beneficial conversion — — — — (22,260) feature of convertible preferred stock Accretion on redeemable — — — — (952) preferred stock Net loss applicable to $(53,582) $(51,781) $(191,490) $(169,366) $(2,319,614) common stockholders Net loss per share applicable to common $(0.16) $(0.23) $(0.64) $(0.94) stockholders — basic and diluted Shares used to compute basic and diluted net loss per share 337,284 229,234 299,591 180,855 applicable to common stockholders MannKind Corporation (A Development Stage Company) Condensed Consolidated Balance Sheet (Unaudited) (in thousands) December 31,2013 December 31,2012 Assets Current assets: Cash and cash equivalents $70,790 $61,840 Prepaid expenses and other current 5,485 4,970 assets Total current assets 76,275 66,810 Property and equipment — net 176,557 183,961 Other assets 5,814 543 Total $258,646 $251,314 Liabilities and Stockholders' Deficit Current liabilities $127,794 $144,775 Senior convertible notes 98,439 97,583 Note payable to related party 49,521 119,635 Other liabilities 13,605 — Stockholders' deficit (30,713) (110,679) Total $258,646 $251,314 CONTACT: Company Contact: Matthew J. Pfeffer Chief Financial Officer 661-775-5300 email@example.com MannKind Corporation Logo
MannKind Corporation Reports 2013 Fourth Quarter and Full Year Financial Results
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