MannKind Corporation Reports 2013 Fourth Quarter and Full Year Financial Results

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
         mpfeffer@mannkindcorp.com

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