MannKind Corporation Reports 2013 Fourth Quarter and Full Year Financial Results

MannKind Corporation has reported financial results for the fourth quarter and full year ended 31 December 2013.

FOURTH QUARTER

For the fourth quarter of 2013, total operating expenses were $46.6 million, compared with $33.5 million for the fourth quarter of 2012, an increase of $13.1 million.

Research and development (R&D) expenses were $29.0 million for the fourth quarter of 2013, compared with $25.3 million for the corresponding quarter in 2012, due to an increase in non-cash stock compensation expense of $4.3 million that was offset by a decrease in clinical trial related expenses of $1.3 million.

General and administrative (G&A) expenses increased by $9.4 million to $17.6 million for the fourth quarter of 2013, compared with $8.2 million in the fourth quarter of 2012. The increase in G&A expenses was due to an increase in non-cash stock compensation expense of $6.0 million and increased professional legal and financing fees of $2.2 million as compared with the corresponding quarter of the prior year. Non-cash stock compensation expense results from vesting of stock awards over time and upon achievement of specific regulatory and business development milestones related to AFREZZA.

FULL YEAR

For fiscal year 2013, operating expenses totaled $169.4 million, compared with $147.0 million for fiscal year 2012.

Total R&D expenses for fiscal year 2013 increased by $8.2 million, or 8.1%, to $109.7 million for fiscal year 2013 as compared to $101.5 million for fiscal year 2012, due to an increase in non-cash stock compensation expense of $14.2 million that was offset by a decrease in clinical trial related expense in 2013.

G&A expenses increased by $14.2 million, or 31.2%, to $59.7 million for fiscal year 2013 as compared to $45.5 million in fiscal year 2012, due to increased non-cash stock compensation expense of $17.7 million and increased professional legal and financing fees of $2.3 million in 2013 that was offset by the $6.5 million litigation settlement accrual recorded in 2012.

The net loss applicable to common stockholders for fiscal year 2013 was $(191.5) million, or $(0.64) per share based on 299.6 million weighted average shares outstanding, compared with a net loss applicable to common stockholders of $(169.4) million, or $(0.94) per share based on 180.9 million weighted average shares outstanding for fiscal year 2012. The number of common shares outstanding at 31 December 2013 was 369,391,972.

Cash and cash equivalents were $70.8 million at December 31, 2013 and $61.8 million at 31 December 2012. Currently, there is $30.1 million of available borrowings under the amended loan arrangement with The Mann Group.