MannKind (MNKD) - Get MannKind Corporation Report said Thursday it plans to sell $350 million in debt, warrants and common stock to help finance development of its experimental inhaled insulin product, Technosphere.
The announcement, after markets had closed, accompanied release of second-quarter results that had been delayed by a week. MannKind lost $72 million, or 98 cents a share, for the quarter, widened from a loss of $54.75 million, or $1.10 a share, for the year-ago period.
Revenue for the company, which doesn't yet have a product on the market, was negligible.
The shelf offering will provide MannKind with "additional financing flexibility if and when deemed appropriate," the company said. MannKind's prospectus speaks in general terms of extra funds being used to finance clinical trials, other R&D activities and expanding manufacturing operations.
Although MannKind is conducting cancer-therapy research, inhaled insulin is its lead experimental product and is in late-stage clinical testing.
MannKind's decision to raise more money concludes several days of erratic stock behavior based partly on news and partly on speculation.
started bouncing last Friday, dropping 16% after MannKind said it would delay its financial report and that its chief financial officer would retire at the end of 2008.
MannKind also said it was having difficulty finding a marketing partner for Technosphere. Partners have been hesitant to jump on board with the drug given the
poor performance of Exubera, the inhaled insulin from
Analysts say MannKind needs a partner not only to compete with Exubera but also with other inhaled insulin products being developed by such heavyweights as
and the world's biggest insulin provider,
On Monday, MannKind's stock got hit again, falling 7.4% as one investment banker cut his rating to neutral from buy. But shares rebounded 12% on Wednesday despite any company announcement or ratings changes by analysts.
On Thursday, the stock gained as much as 26% in intraday trading before closing at $10.08, up 40 cents, or 4.1%.
After hours, the stock gained 92 cents, or 9.1%.