MannKind Corporation Reports 2014 Fourth Quarter and Full Year Financial Results
February 24 2015 - 04:05PM
MannKind Corporation (Nasdaq:MNKD) today reported
financial results for the fourth quarter and full year ended
December 31, 2014.
For the fourth quarter, our operating expenses declined 35%
compared to the similar quarter in 2013. Research and development
costs were significantly lower, mainly due to a reduction in
non-cash compensation expenses and much lower clinical trial
expenses following the completion of the Affinity studies in 2013.
General and administrative costs declined 29%, mainly reflecting
lower non-cash compensation expenses.
For the full year 2014, our total operating expenses increased
modestly, with a decrease in research and development costs offset
by an increase in general and administrative costs. Research and
development costs decreased due to the completion of our Affinity
trials, the pivotal clinical trials relating to the efficacy and
safety of our novel inhaled insulin, Afrezza. Higher general and
administrative costs resulted primarily from increased professional
fees, principally related to the negotiation and completion of
a collaboration agreement with Sanofi. In addition, professional
fees reflected a significant expansion in our program to identify,
screen and fully evaluate new product opportunities that will best
take advantage of the unique advantages of our Technosphere® drug
delivery technology.
The net loss applicable to common stockholders for 2014 was
$198.4 million or $0.51 per share based on 385.2 million weighted
average shares outstanding, slightly higher than the net loss to
common shareholders of $191.5 million, or $0.64 per share on 299.6
million weighted average shares outstanding in 2013. Our common
shares outstanding at year-end 2014 were 406.1 million.
Cash and cash equivalents at the end of 2014 were $120.8
million. Subsequent to year end, we received $50.0 million
relating to two product development milestones achieved in the
fourth quarter of 2014 from our collaboration agreement with
Sanofi. In addition, we have $30.1 million of borrowings remaining
under the loan arrangement with the Mann Group.
"After achieving a number of significant milestones during 2014,
we began the commercial production of Afrezza during the fourth
quarter of the year," said Hakan Edstrom, MannKind's President and
Chief Executive Officer. "With our flagship product, Afrezza©, in
the early stages of its commercial launch in the United States, we
now enter a very exciting new phase for MannKind."
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: 3859 3101. 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 3101#. 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 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, 2013 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 |
Condensed Consolidated
Statements of Operations |
(Unaudited) |
(In thousands, except per share
amounts) |
|
|
Three months
ended |
Twelve months
ended |
|
December
31, |
December
31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Revenue |
$ — |
$ — |
$ — |
$ — |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
17,560 |
28,988 |
100,244 |
109,719 |
General and administrative |
12,543 |
17,629 |
79,383 |
59,682 |
|
|
|
|
|
Total operating expenses |
30,103 |
46,617 |
179,627 |
169,401 |
|
|
|
|
|
Loss from operations |
(30,103) |
(46,617) |
(179,627) |
(169,401) |
Other income (expense) |
42 |
(683) |
1,679 |
(635) |
Interest expense on note payable to related
party |
(729) |
(1,185) |
(2,894) |
(6,309) |
Interest expense on senior convertible notes
and facility financing obligation |
(5,654) |
(5,101) |
(17,549) |
(15,153) |
Interest income |
5 |
4 |
9 |
8 |
|
|
|
|
|
Net loss applicable to common
stockholders |
$ (36,439) |
$ (53,582) |
$ (198,382) |
$ (191,490) |
|
|
|
|
|
Net loss per share applicable to common
stockholders — basic and diluted |
$ (0.09) |
$ (0.16) |
$ (0.51) |
$ (0.64) |
|
|
|
|
|
Shares used to compute basic and diluted net
loss per share applicable to common stockholders |
396,793 |
337,284 |
385,229 |
299,591 |
|
|
|
|
|
MannKind
Corporation |
Condensed Consolidated
Balance Sheet |
(Unaudited) |
(in thousands) |
|
|
December 31,
2014 |
December 31,
2013 |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 120,841 |
$ 70,790 |
Inventory |
9,670 |
— |
Prepaid expenses and other current
assets |
70,642 |
5,485 |
Total current assets |
201,153 |
76,275 |
Property and equipment — net |
192,127 |
176,557 |
Other assets |
1,159 |
5,814 |
Total |
$ 394,439 |
$ 258,646 |
|
|
|
Liabilities and Stockholders'
Deficit |
|
|
Current liabilities |
$ 403,353 |
$ 127,794 |
Senior convertible notes |
— |
98,439 |
Note payable to related party |
49,521 |
49,521 |
Other liabilities |
15,335 |
13,605 |
Stockholders' deficit |
(73,770) |
(30,713) |
Total |
$ 394,439 |
$ 258,646 |
CONTACT: Company Contact:
Matthew J. Pfeffer
Chief Financial Officer
661-775-5300
mpfeffer@mannkindcorp.com
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