MannKind Corporation Reports 2016 First Quarter Financial Results
May 09 2016 - 4:00PM
MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD)
today reported financial results for the first quarter ended March
31, 2016.
For the first quarter of 2016, total operating
expenses were $20.0 million as compared to $21.7 million for the
same quarter in 2015. Research and development expenses were
$5.1 million for the first quarter of 2016, a decline of 45%,
compared to the first quarter of 2015, primarily due to the
reduction in force and closure of the Paramus, New Jersey facility
in 2015 and the transition from development to commercial
activities. General and administrative costs were $7.4 million for
the first quarter of 2016, a decline of 30%, compared to the first
quarter of 2015, mainly due to the reduction in force and closure
of the Paramus facility in 2015 in addition to reduced professional
fees related to strategic planning activities incurred in 2015 and
lower non-cash stock compensation expense. Product manufacturing
costs for the first quarter of 2016 were $7.5 million, an increase
of 300%, compared to the same quarter of 2015, due to
underutilization of the manufacturing facility and loss from
foreign currency exchange of $2.4 million related to purchase
commitments.
The Company’s portion of the loss sharing under
the Sanofi License Agreement was $5.5 million for the first quarter
of 2016. The total amount owed to Sanofi is currently $68.8
million, including accrued interest of $2.8
million.
The net loss for the first quarter of 2016 was
$24.9 million, or $0.06 per share based on 428.9 million weighted
average shares outstanding, compared to the net loss of $30.7
million, or $0.08 per share on 398.9 million weighted average
shares outstanding in the first quarter of 2015. The number of
common shares outstanding at March 31, 2016 was 429.1 million.
Cash and cash equivalents at March 31, 2016 were
$27.7 million, compared to $59.1 million at December 31, 2015. In
February 2016, an upfront fee of $250,000 was received pursuant to
the previously announced collaboration and license agreement with
Receptor Life Sciences. In addition, $467,000 was received
from exercises of stock options by employees. Currently,
$30.1 million remains available for borrowing under the amended
loan arrangement with The Mann Group. A recently filed universal
shelf registration statement became effective along with a
prospectus supplement for a $50.0 million ATM facility.
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 (888) 771-4371 or (847)
585-4405 and use the participant passcode: 41477569. 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:
4147 7569#. A replay will also be available on MannKind's
website for 14 days.
About MannKind Corporation
MannKind Corporation (Nasdaq and TASE: MNKD)
focuses on the discovery, development and commercialization 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, including
statements regarding MannKind’s ability to directly commercialize
pharmaceutical products. 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 MannKind’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, the
ability to generate significant product sales for MannKind,
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, 2015 and subsequent periodic reports on Form
10-Q and current reports on 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 CorporationCondensed
Consolidated Statements of
Operations(Unaudited)(In thousands) |
|
|
Three months ended March 31,
|
|
|
|
2016 |
|
|
2015 |
|
Revenue |
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
Research and
development |
|
5,130 |
|
|
9,377 |
|
General and
administrative |
|
7,351 |
|
|
10,479 |
|
Product
manufacturing |
|
7,532 |
|
|
1,882 |
|
Total
operating expenses |
|
20,013 |
|
|
21,738 |
|
|
|
|
|
|
|
|
Loss from
operations |
|
(20,013 |
) |
|
(21,738 |
) |
Other income |
|
67 |
|
|
1,413 |
|
Interest expense on note
payable to principal stockholder |
|
(721 |
) |
|
(714 |
) |
Interest expense on
notes |
|
(4,221 |
) |
|
(9,622 |
) |
Interest income |
|
15 |
|
|
3 |
|
|
|
|
|
|
|
|
Net loss |
$ |
(24,873 |
) |
$ |
(30,658 |
) |
|
|
|
|
|
|
|
Net loss per share — basic
and diluted |
$ |
(0.06 |
) |
$ |
(0.08 |
) |
|
|
|
|
|
|
|
Shares used to compute
basic and diluted net loss per share |
|
428,858 |
|
|
398,916 |
|
|
|
|
|
|
|
|
MannKind CorporationCondensed Consolidated
Balance Sheet(Unaudited)(in thousands) |
|
|
March 31, 2016 |
December 31, 2015 |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and
cash equivalents |
$ |
27,653 |
|
$ |
59,074 |
|
Receivables from collaboration |
|
144 |
|
|
23 |
|
Deferred
product costs from collaboration |
|
13,539 |
|
|
13,539 |
|
Prepaid
expenses and other current assets |
|
2,807 |
|
|
4,018 |
|
Total current
assets |
|
44,143 |
|
|
76,654 |
|
Property and equipment
— net |
|
48,033 |
|
|
48,749 |
|
Other assets |
|
1,096 |
|
|
1,009 |
|
Total |
$ |
93,272 |
|
$ |
126,412 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Deficit |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
582 |
|
$ |
15,599 |
|
Accrued expenses and
other current liabilities |
|
8,077 |
|
|
7,929 |
|
Facility financing
obligation |
|
75,010 |
|
|
74,582 |
|
Deferred product sales
from collaboration |
|
17,680 |
|
|
17,503 |
|
Purchase commitments
liabilities - current |
|
12,927 |
|
|
12,475 |
|
Deferred payments from
collaboration |
|
134,935 |
|
|
140,231 |
|
Current
liabilities |
|
249,211 |
|
|
268,319 |
|
Note payable to related
party |
|
49,521 |
|
|
49,521 |
|
Sanofi loan facility
and loss share obligation |
|
68,835 |
|
|
62,371 |
|
Senior convertible
notes |
|
27,618 |
|
|
27,613 |
|
Net purchase
commitments |
|
55,605 |
|
|
53,692 |
|
Other liabilities |
|
15,946 |
|
|
15,225 |
|
Stockholders’
deficit |
|
(373,464 |
) |
|
(350,329 |
) |
Total |
$ |
93,272 |
|
$ |
126,412 |
|
|
|
|
|
|
|
|
Company Contact:
Rose Alinaya
SVP, Finance
661-775-5300
ralinaya@mannkindcorp.com
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