VALENCIA, Calif., Nov. 27 /PRNewswire-FirstCall/ -- MannKind Corporation announced today that it intends to offer to sell, subject to market and other conditions, 17,500,000 shares of its common stock in an underwritten public offering. MannKind intends to grant the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of its common stock to cover over-allotments. All of the shares are being offered by the Company.
Concurrently with the offering of its common stock, MannKind also intends to offer to sell, subject to market and other conditions, $100,000,000 aggregate principal amount of senior convertible notes due 2013 in an underwritten public offering. MannKind intends to grant the underwriters a 13-day option to purchase up to an additional $15,000,000 of notes to cover the over-allotments.
The common stock offering and the senior convertible note offering are being conducted as separate public offerings by means of separate prospectus supplements, and the offerings are not contingent upon each other.
The underwriters have reserved up to 8,750,000 shares in the common stock offering and $50,000,000 of notes in the notes offering for sale to our chairman, chief executive officer and principal stockholder, Alfred E. Mann. The number of shares and the amount of notes that Mr. Mann will be allocated in the common stock and notes offerings, respectively, will depend on market conditions and may be more or less than the amount initially reserved for allocation. The underwriters will not receive any underwriting discount on the common stock or notes sold to Mr. Mann in these offerings.
J.P. Morgan Securities Inc. and Merrill Lynch & Co. are acting as joint lead managers and joint bookrunners of each of the public offerings. Wachovia Capital Markets, LLC, CIBC World Markets Corp. and Leerink Swann & Co., Inc. are acting as co-managers of the common stock offering. Information about each of the offerings is available in the prospectus supplements for the offerings filed with the Securities and Exchange Commission. Copies of the prospectus supplements can be obtained from J.P. Morgan’s prospectus department at 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attention: Prospectus Department and from Merrill Lynch’s prospectus department at 4 World Financial Center, New York, NY 10080.
A shelf registration statement relating to the securities being offered has been filed with the Securities and Exchange Commission and has become effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About MannKind Corporation
MannKind Corporation focuses on the discovery, development and commercialization of therapeutic products for diseases such as diabetes and cancer. Its lead product, the Technosphere(R) 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.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to the sale by MannKind of its securities, 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 the 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 meet the closing conditions required for the consummation of the public offerings, the progress, timing and results of clinical trials, the risk that future safety and efficacy studies may not confirm our past clinical results, intellectual property matters, difficulties or delays in seeking or obtaining regulatory approval, manufacturing MannKind’s lead product candidate, competition from other pharmaceutical or biotechnology companies, MannKind’s ability to enter into any collaborations or strategic partnerships or obtain additional financing to support MannKind’s operations, MannKind’s ability to meet milestones 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, 2005 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
CONTACT: Dick Anderson, Chief Financial Officer, MannKind Corporation,+1-661-775-5302, danderson@mannkindcorp.com; Julie Huang (investors), orRobert Stanislaro (media), +1-212-850-5600, mnkd@fd.com, FinancialDynamics, for MannKind Corporation
Web site: http://www.mannkindcorp.com/
