MannKind Corporation (Nasdaq: MNKD) today reported financial
results for the fourth quarter and year ended December 31, 2012.
For the fourth quarter of 2012, total operating expenses were $33.5
million, compared to $30.6 million for the same quarter of 2011, an
increase of $2.9 million. Research and development (R&D) expenses were
$25.3 million for the fourth quarter of 2012 compared to $20.2 million
for the same quarter of 2011, an increase of $5.1 million. This 25.2%
increase was primarily due to increased clinical trial related
activities for the fourth quarter of 2012 as compared to the same
quarter of 2011. General and administrative (G&A) expenses were $8.2
million for the fourth quarter of 2012 as compared to $10.3 million for
the same quarter of 2011, a decrease of $2.1 million. This 20.4%
decrease in G&A expense was primarily due to decreased legal expenses
during the fourth quarter of 2012, as compared to the same quarter of
2011.
Other expense of $13.3 million for the fourth quarter of 2012 was
primarily due to an adjustment in the fair value of a forward purchase
contract with a related party settled in December 2012.
For fiscal year 2012, operating expenses totaled $147.0 million,
compared to $140.6 million for fiscal year 2011, an increase of $6.4
million. Total R&D expenses were $101.5 million for fiscal year 2012,
compared to $100.0 million for fiscal year 2011, an increase of $1.5
million. This 1.5% increase was primarily due to increased clinical
trial-related expenses of $24.9 million, offset by the non-recurrence of
$16.0 million in expenses recorded during fiscal year 2011 in connection
with the settlement of the terminated insulin supply agreement and
decreased salary-related expenses of $8.6 million resulting from the
February 2011 restructuring. G&A expenses were $45.5 million for fiscal
year 2012, compared to $40.6 million for fiscal year 2011, an increase
of $4.9 million. This 12.1% increase was primarily due to $6.5 million
in non-cash litigation settlement expenses incurred during fiscal year
2012, partially offset by decreased salary-related costs as a result of
the February 2011 reduction in force.
Other expense for fiscal year 2012 was $1.2 million compared to other
income of $1.5 million in the prior year. For 2012, other expense
reflects the adjustment in fair value of forward purchase contracts. In
2011, other income was primarily realized gains on the termination of
foreign exchange hedging contracts.
Net loss applicable to common stockholders for fiscal year 2012 was
$(169.4) million, or $(0.94) per share based on 180.9 million weighted
average shares outstanding, compared to net loss applicable to common
stockholders of $(160.8) million, or $(1.32) per share based on 121.8
million weighted average shares outstanding for fiscal year 2011. The
number of common shares outstanding at December 31, 2012 was 286,035,082.
Cash and cash equivalents were $61.8 million at December 31, 2012 and
$2.7 million at December 31, 2011.
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) 447-0521 or (847) 413-3238 and use the participant passcode:
34087260. To listen to the call via the Internet please visit http://www.mannkindcorp.com.
The web site replay will be available for 14 days. 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: 3408 7260#.
Presenting from the Company will be:
-
Chairman and Chief Executive Officer Alfred Mann
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President and Chief Operating Officer Hakan Edstrom
-
Corporate Vice President and Chief Financial Officer Matthew Pfeffer
About MannKind Corporation
MannKind Corporation (Nasdaq: MNKD) focuses on the discovery,
development and commercialization of therapeutic products for patients
with diseases such as diabetes and cancer. Its lead product candidate,
AFREZZA®, is in late stage clinical investigation for the treatment of
adults with type 1 or type 2 diabetes for the control of hyperglycemia.
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.
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MannKind Corporation
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(A Development Stage Company)
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Condensed Consolidated Statements of Operations
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(Unaudited)
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(In thousands, except per share amounts)
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Three months ended
December 31,
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Year ended
December 31,
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Cumulative period
from February 14,
1991 (date of
inception) to
December 31,
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2012
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2011
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2012
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2011
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2012
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Revenue
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$
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—
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$
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—
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$
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35
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$
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50
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$
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3,166
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Operating expenses:
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Research and development
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25,275
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20,242
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101,522
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99,959
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1,467,573
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General and administrative
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8,211
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10,337
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45,473
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40,630
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425,704
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In-process research and development costs
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—
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—
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—
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—
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19,726
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Goodwill impairment
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—
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—
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—
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—
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151,428
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Total operating expenses
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33,486
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30,579
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146,995
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140,589
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2,064,431
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Loss from operations
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(33,486
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(30,579
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(146,960
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)
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(140,539
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)
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(2,061,265
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)
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Other income (expense)
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(13,269
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)
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66
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(1,191
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)
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1,541
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(2,267
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)
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Interest expense on note payable to related party
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(2,170
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(3,035
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(10,491
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(10,883
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(38,825
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Interest expense on senior convertible notes
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(2,861
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)
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(2,849
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(11,139
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(10,941
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)
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(39,933
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Interest income
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5
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—
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7
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18
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36,996
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Loss before provision for income taxes
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(51,781
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)
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(36,397
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(169,774
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)
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(160,804
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)
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(2,105,294
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)
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Income tax benefit
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—
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—
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(408
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)
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—
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(382
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Net loss
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(51,781
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)
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(36,397
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)
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(169,366
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(160,804
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)
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(2,104,912
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Deemed dividend related to beneficial conversion feature of
convertible preferred stock
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—
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—
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—
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—
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(22,260
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)
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Accretion on redeemable preferred stock
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—
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—
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—
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—
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(952
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Net loss applicable to common stockholders
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$
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(51,781
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$
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(36,397
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$
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(169,366
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$
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(160,804
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$
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(2,128,124
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)
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Net loss per share applicable to common stockholders — basic and
diluted
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$
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(0.23
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$
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(0.30
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$
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(0.94
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$
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(1.32
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)
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Shares used to compute basic and diluted net loss per share
applicable to common stockholders
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229,234
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122,357
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180,855
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121,817
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MannKind Corporation
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(A Development Stage Company)
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Condensed Consolidated Balance Sheet
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(Unaudited)
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(in thousands)
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December 31, 2012
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December 31, 2011
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Assets
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Current assets:
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Cash and cash equivalents
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$
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61,840
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$
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2,681
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Prepaid expenses and other current assets
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4,970
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3,140
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Total current assets
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66,810
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5,821
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Property and equipment — net
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183,961
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193,029
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State research and development credit exchange receivable — net of
current portion
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313
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473
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Other assets
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230
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230
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Total
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$
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251,314
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$
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199,553
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Liabilities and Stockholders’ Deficit
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Current liabilities
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$
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144,775
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$
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25,360
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Senior convertible notes
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97,583
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210,642
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Note payable to principal stockholder
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119,635
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277,203
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Stockholders’ deficit
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(110,679
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)
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(313,652
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Total
|
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$
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251,314
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$
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199,553
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