MannKind Corporation Reports 2014 First Quarter Financial Results

MannKind Corporation Reports 2014 First Quarter Financial Results

Conference Call to Begin Today at 5:00 PM ET

VALENCIA, Calif., May 12, 2014 (GLOBE NEWSWIRE) -- MannKind Corporation
(Nasdaq:MNKD) today reported financial results for the first quarter ended
March 31, 2014.

For the first quarter of 2014, total operating expenses were $41.4 million,
compared to $36.4 million for the first quarter of 2013, an increase of $5.0
million. Research and development (R&D) expenses were $26.2 million for the
first quarter of 2014, compared to $26.4 million for the corresponding quarter
in 2013, a decrease of $0.2 million. General and administrative (G&A) expenses
increased by $5.2 million to $15.2 million for the first quarter of 2014
compared to $10.0 million in the first quarter of 2013. The increase in G&A
expenses was due to an increase in non-cash stock-based compensation expense
of $3.4 million and $1.2 million in consulting and legal fees related to
financing transactions.

The net loss applicable to common stockholders for the first quarter of 2014
was $52.1 million, or $0.14 per share based on 368.8 million weighted average
shares outstanding, compared with a net loss applicable to common stockholders
of $41.0 million, or $0.15 per share based on 280.1 million weighted average
shares outstanding for the first quarter of 2013. The increase in shares
outstanding from the first quarter of 2013 to the first quarter of 2014
resulted largely from warrant exercises, at-the-market stock issuances and
conversion of debt into equity. The number of common shares outstanding at
March 31, 2014 was 386,934,914.

Cash and cash equivalents were $35.8 million at March 31, 2014 and $70.8
million at December 31, 2013. Currently, there is $30.1 million of available
borrowings under the amended loan arrangement with The Mann Group. Under the
provisions of the amended Deerfield Facility Agreement, the lenders purchased
an aggregate principal amount of $20.0 million in Tranche B notes on May 6,
2014.

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: 36435003. 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 5003#.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®, is under review by the FDA.

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, 2013 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)
                                                             
                                                             Cumulative
                                                             period from
                                                             February 14,
                                                             1991 (date of
                                       Threemonths ended      inception) to
                                       March 31,               March 31,
                                       2014        2013        2014
                                                             
Revenue                                 $ —         $ —         $3,166
Operating expenses:                                           
Research and development                26,182      26,398      1,603,474
General and administrative              15,229      10,039      500,615
In-process research and development     —           —           19,726
costs
Goodwill impairment                     —           —           151,428
Total operating expenses                41,411      36,437      2,275,243
Loss from operations                    (41,411)    (36,437)    (2,272,077)
Other income (expense)                  (5,890)     23          (8,792)
Interest expense on note payable to     (714)       (1,689)     (45,848)
related party
Interest expense on senior convertible  (4,042)     (2,863)     (59,128)
notes
Interest income                         1           1           37,005
Loss before benefit for income taxes    (52,056)    (40,965)    (2,348,840)
Income tax benefit                      —           —           382
Net loss                                (52,056)    (40,965)    (2,348,458)
Deemed dividend related to beneficial
conversion feature of convertible       —           —           (22,260)
preferred stock
Accretion on redeemable preferred stock —           —           (952)
Net loss applicable to common           $(52,056) $(40,965) $(2,371,670)
stockholders
Net loss per share applicable to common $(0.14)   $(0.15)   
stockholders — basic and diluted
Shares used to compute basic and
diluted net loss per share applicable   368,784     280,058     
to common stockholders


MannKind Corporation
(A Development Stage Company)
Condensed Consolidated Balance Sheet
(Unaudited)
(in thousands)
                                                           
                                             March 31, 2014 December 31, 2013
                                                           
Assets                                                      
Current assets:                                             
Cash and cash equivalents                     $35,759        $70,790
Prepaid expenses and other current assets     3,640          5,485
Total current assets                          39,399         76,275
Property and equipment — net                  176,337        176,557
Other assets                                  8,817          5,814
Total                                         $224,553       $258,646
                                                           
                                                           
Liabilities and Stockholders' Equity                        
(Deficit)
Current liabilities                           $44,515        $127,794
Senior convertible notes                      98,662         98,439
Note payable to related party                 49,521         49,521
Other liabilities                             14,319         13,605
Stockholders' equity (deficit)                17,536         (30,713)
Total                                         $224,553       $258,646

CONTACT: Company Contact:
         Matthew J. Pfeffer
         Chief Financial Officer
         661-775-5300
         mpfeffer@mannkindcorp.com

MannKind Corporation Logo
 
Press spacebar to pause and continue. Press esc to stop.