Trading of MannKind Corp. shares was halted by Nasdaq OMX Group Inc. because the biotechnology company founded by the billionaire inventor Alfred Mann plans to release news, Nasdaq spokesman Wayne Lee said.
The halt started at 11:57 a.m. New York time today, according to data compiled by Bloomberg. Earlier, Nasdaq and NYSE Euronext said trades in which MannKind shares plunged as much as 38 percent to $6.05 won’t be canceled under rules covering “clearly erroneous” transactions.
Listed companies “have to contact Nasdaq to let them know in advance that material news is going to be disseminated,” Lee said in a telephone interview today. “Then we review the news to determine whether or not it’s material and what the appropriate course of action is.”
MannKind is awaiting a decision from the U.S. Food and Drug Administration about marketing its inhaled insulin, Afrezza, for people with diabetes. Matthew Pfeffer, the company’s chief financial officer, didn’t immediately respond to a telephone call and e-mail requesting comment.
Before today, the shares had surged 22 percent in 2011. They fell 7.3 percent from yesterday’s closing level to $9.11 when the trading halt began.
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