MannKind Corporation Reports Fourth Quarter And Full Year 2005 Financial Results
VALENCIA, Calif., Feb. 6 /PRNewswire-FirstCall/ -- MannKind Corporation today reported financial results for the fourth quarter and year ended December 31, 2005.
For the fourth quarter of 2005, total operating expenses were $35.0 million, compared with $21.7 million for the fourth quarter of 2004. Research and development (R&D) expenses increased by $8.1 million to $28.6 million for the fourth quarter of 2005 compared to the fourth quarter of 2004, primarily due to increased costs associated with the Company's expanded clinical development program for Technosphere(R) Insulin, which is currently in Phase 3 clinical trials in the U.S. and Europe. General and administrative (G&A) expenses increased by $5.3 million to $6.5 million for the fourth quarter of 2005 compared to the fourth quarter of 2004 primarily due to changes in stock compensation expense and increased consulting and various other general and administrative expenses, such as legal and accounting fees.
The net loss applicable to common stockholders for the fourth quarter of 2005 was $33.3 million, or $0.66 per share based on 50.3 million shares outstanding, compared with a net loss applicable to common stockholders of $21.2 million, or $0.65 per share based on 32.8 million shares outstanding, for the fourth quarter of 2004.
For the year ended December 31, 2005, total operating expenses were $118.1 million, compared with $77.1 million for 2004. R&D expenses were $95.3 million in 2005, up $35.9 million from 2004, primarily related to the expansion of clinical trials of the Technosphere Insulin program. G&A expenses increased by $5.1 million to $22.8 million for 2005 as compared to 2004 primarily related to increased compensation and other employee related costs and increased legal, accounting and consulting fees. The net loss applicable to common stockholders for 2005 was $114.3 million, or $2.87 per share based on 39.9 million shares outstanding, compared with a net loss applicable to common stockholders of $95.9 million, or $3.80 per share based on 25.2 million shares outstanding for 2004.
"2005 was an exceptional year for MannKind," said Alfred Mann, Chairman and Chief Executive Officer of MannKind Corporation. "In addition to strengthening our balance sheet and expanding our management team, we added to the growing evidence of the safety, efficacy, and other differentiating qualities of our lead investigational product candidate, Technosphere Insulin, an inhalable form of insulin for type 1 and type 2 diabetes."
Hakan Edstrom, President and Chief Operating Officer of MannKind Corporation added, "In recent clinical trials, we observed that the Technosphere Insulin System reduces blood glucose excursions following a meal compared to the effect seen with oral or injectable diabetes medications. At the same time, Technosphere Insulin appears to reduce the risk of late postprandial hypoglycemia commonly associated with other diabetes products, without any evidence of weight gain or deterioration in pulmonary function."
MannKind management will host a conference call to discuss these results today at 9:00 a.m. Eastern Standard Time. To participate in the call please dial (888) 566-5775 or (210) 839-8503. To listen to the call via the Internet please visit www.mannkindcorp.com. A telephone replay will be accessible for approximately 48 hours following completion of the call by dialing (866) 350- 6999 or (203) 369-0042 and entering conference number 1437837. The web site replay will be available for fourteen days.
Presenting from the Company will be: -- Chairman and Chief Executive Officer Alfred Mann -- President and Chief Operating Officer Hakan Edstrom -- Corporate Vice President and Chief Financial Officer Dick Anderson About MannKind Corporation
MannKind Corporation focuses on the discovery, development and commercialization of therapeutic products for diseases such as diabetes and cancer. Its lead investigational product candidate, the Technosphere(R) Insulin System, is currently in phase 3 clinical trials in the U.S. and Europe to study its safety and efficacy in the treatment of diabetes. For more information on MannKind Corporation and its technology, visit www.mannkindcorp.com.
This press release contains forward-looking statements, including statements related to MannKind's clinical trials and product candidates 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, risks related to the progress, timing and results of clinical trials, the risk that future safety and efficacy studies may not confirm our past clinical results, risks related to intellectual property matters, difficulties or delays in seeking or obtaining regulatory approval, risks related to manufacturing the Company's lead product candidate, risks related to competition from other pharmaceutical or biotechnology companies, risks related to the Company's ability to enter into any collaborations or strategic partnerships or obtain additional financing to support the Company's operations, risks related to the Company's ability to meet milestones and other risks detailed in MannKind's filings with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2004 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 news release.
MannKind Corporation Consolidated Statements of Operations (Unaudited) (In thousands, except Three Months Ended Year Ended per share amounts) December 31, December 31, 2005 2004 2005 2004 Revenue -- -- -- -- Operating expenses: Research and development 28,589 20,506 95,347 59,406 General and administrative 6,457 1,191 22,775 17,743 Total operating expenses 35,046 21,697 118,122 77,149 Loss from operations (35,046) (21,697) (118,122) (77,149) Other income (expense) 85 114 78 226 Interest income 1,669 433 3,707 932 Loss before provision for income taxes (33,292) (21,150) (114,337) (75,991) Income taxes 0 0 (1) (1) Net loss (33,292) (21,150) (114,338) (75,992) Deemed dividend related to beneficial conversion feature of convertible preferred stock 0 0 0 (19,822) Accretion on redeemable preferred stock 0 0 0 (60) Net loss applicable to common stockholders $(33,292) $(21,150) $(114,338) $(95,874) Net loss per share applicable to common stockholders - basic and diluted $(0.66) $(0.65) $(2.87) $(3.80) Shares used to compute basic and diluted net loss per share applicable to common stockholders 50,250 32,768 39,871 25,221 MannKind Corporation Condensed Consolidated Balance Sheet (Unaudited) (in thousands) December 31, December 31, Assets 2005 2004 Current assets: Cash and cash equivalents $56,037 $78,987 Marketable securities 89,597 11,546 Restricted cash 583 State research and development tax credit exchange receivable - current 1,194 1,500 Prepaid expenses and other current assets 3,044 3,265 Total current assets 149,872 95,881 Property and equipment - net 76,183 66,511 State research and development tax credit exchange receivable - net of current portion 2,031 1,030 Other assets 285 61 Total $228,371 $163,483 Liabilities and Stockholders' Equity Current liabilities $21,365 $13,044 Other liabilities 29 76 Stockholders' equity 206,977 150,363 Total $228,371 $163,483MannKind Corporation
CONTACT: Dick Anderson, Chief Financial Officer of MannKind Corporation,+1-661-775-5302, email@example.com; or Investors, Julie Huang, orMedia, Robert Stanislaro, both of Financial Dynamics, +1-212-850-5600,firstname.lastname@example.org, for MannKind Corporation
Web site: http://www.mannkindcorp.com//