VALENCIA, Calif., Oct. 2 /PRNewswire-FirstCall/ -- MannKind Corporation announced today that it has entered into a new loan arrangement with Alfred E. Mann, its principal stockholder, Chief Executive Officer and Chairman of the Board of Directors, providing for $350 million in credit available until December 31, 2009. The loan can be drawn down in certain amounts and during specific times. Advances bear interest at the rate of LIBOR plus 3%, are unsecured, and rank pari passu with the Company’s other senior unsecured debt. There are no warrants or other consideration in connection with the loan arrangement. MannKind will be required to repay any borrowings under this arrangement on December 31, 2011. At any time after January 1, 2010, Mr. Mann can require MannKind to prepay up to $200 million in advances that have been outstanding for at least 12 months. This new loan agreement replaces the $150 million loan agreement with Mr. Mann that was previously in place.
“This arrangement together with the registered direct offerings of common stock also announced today represent commitments of $600 million, which we believe will enable us to continue to advance our Technosphere(R) Insulin program and fund our other operations through the third quarter of 2009,” stated Hakan Edstrom, President and Chief Operating Officer. “These funds ensure that we will be able to support our operations beyond the filing of our NDA for Technosphere Insulin -- which is still scheduled for December 2008 -- and the subsequent pre-approval inspection of our manufacturing facility in Danbury. We will also be able to continue pipeline expansion activities through this period. As well, we will continue to seek a partner for Technosphere Insulin and will explore other financing options.”
“We continue to be impressed with the unique benefits of Technosphere Insulin, which we believe controls prandial glucose excursions better than any other known therapy -- and glucose excursions are becoming recognized by the experts as the major cause of diabetic complications. I so strongly believe in the significance of Technosphere Insulin that I have extended this $350 million commitment to MannKind in addition to the $566 million that I have invested in MannKind as of today. I am proud of what our team is accomplishing and am committed to seeing this through,” said Mr. Mann.
About MannKind Corporation
MannKind Corporation focuses on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes and cancer. Its lead product, the Technosphere Insulin System, is currently in Phase 3 clinical trials in the United States, Europe and Latin America to study its safety and efficacy in the treatment of diabetes. For more information on MannKind Corporation and its technology, visit http://www.mannkindcorp.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to MannKind’s new loan arrangement, as well as MannKind’s clinical trials and product candidates. 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 MannKind’s current expectations and involve risks and uncertainties. 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 MannKind’s ability to repay any borrowings under the arrangement, the progress, timing and results of clinical trials, difficulties or delays in seeking or obtaining regulatory approval, MannKind’s ability to enter into any collaborations or strategic partnerships, MannKind’s ability to raise additional financing 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, 2006 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.
CONTACT: Dick Anderson, Chief Financial Officer of MannKind Corporation,
+1-661-775-5302, danderson@mannkindcorp.com; or Investors, Evan Smith of
Financial Dynamics, +1-212-850-5600, mnkd@fd.com, for MannKind Corporation
Web site: http://www.mannkindcorp.com/
