- Conference Call Today at 9:00 a.m. EST -
VALENCIA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- MannKind Corporation
(Nasdaq: MNKD) today reported financial results for the third quarter ended
September 30, 2008.
For the third quarter of 2008, total operating expenses were $69.1
million, compared to $75.6 million for the third quarter of 2007, primarily
attributable to the $9.2 million reduction in research and development (R&D)
expenses which totaled $55.6 million for this quarter compared to $64.8
million for the same quarter in 2007. The decrease in R&D expenses for the
three months ended September 30, 2008 as compared to the same period in the
prior year was primarily due to decreased costs associated with the clinical
development of AFRESA(TM) (formerly identified as the Technosphere Insulin
System) and the related manufacturing costs associated with clinical trial
materials, partially offset by increased stock-based compensation expense and
increased facilities-related expenses. General and administrative (G&A)
expenses increased by $2.7 million to $13.4 million for the third quarter of
2008 compared to the third quarter of 2007. G&A expenses for the three months
ended September 30, 2008 increased as compared to the same period in the prior
year primarily due to increased employee-related and consulting expenses and
increased stock-based compensation expense.
For the first nine months of 2008, operating expenses totaled $224.0
million, compared to $228.3 million in the first nine months of 2007. R&D
expenses for the first nine months were $181.7 million, compared to $190.1
million in 2007. The decrease in R&D expenses for the nine months ended
September 30, 2008, as compared to the same period in the prior year was
primarily due to decreased costs associated with the clinical development of
AFRESA and the related manufacturing costs associated with clinical trial
materials, partially offset by increased stock-based compensation expense and
increased facilities-related expenses. G&A expenses increased by $4.2 million
to $42.4 million for the first nine months of 2008 as compared to the same
period in 2007. G&A expenses for the nine months ended September 30, 2008
increased as compared to the same period in the prior year primarily due to
increased employee-related and consulting expenses and increased stock-based
compensation expense, offset by decreased professional fees.
We anticipate that our R&D expenses associated with AFRESA will continue
to decline as we close out our pivotal clinical studies and complete
preparations for the filing of our New Drug Application ('NDA') with the U.S.
Food and Drug Administration ('FDA'). We expect G&A expenses, other than non-
cash stock-based compensation expense, to remain constant in the future.
The net loss for the third quarter of 2008 was $68.5 million, or $0.67 per
share, based on 101.6 million weighted average shares outstanding. This
compares to a net loss of $73.0 million, or $0.99 per share, based on 73.5
million weighted average shares outstanding for the third quarter of 2007.
The net loss for the first nine months of 2008 was $219.7 million, or $2.17
per share based on 101.5 million shares outstanding, compared with a net loss
of $218.2 million, or $2.97 per share based on 73.4 million shares
outstanding, for the first nine months of 2007.
Cash and cash equivalents and marketable securities were $95.2 million at
September 30, 2008, $180.5 million at June 30, 2008, and $368.3 million at
December 31, 2007.
'MannKind has made great progress this quarter,' commented Alfred Mann,
Chairman and Chief Executive Officer. 'Our pivotal trials are completed and
we are well along in preparation of the AFRESA NDA submission to the FDA.
