MannKind Corporation (Nasdaq: MNKD) today reported financial results for the second quarter ended June 30, 2012.

For the second quarter of 2012, total operating expenses were $44.1 million, compared to $39.2 million for the second quarter of 2011, an increase of $4.9 million. Research and development (R&D) expenses were $26.6 million for the second quarter of 2012 compared to $30.3 million for the same quarter in 2011, a decrease of $3.7 million. This 12.2% decrease was primarily due to the settlement of the terminated insulin supply agreement in the second quarter of 2011 of $11.9 million, partially offset by an increase of $7.5 million in clinical trial related activities. General and administrative (G&A) expenses increased by $8.5 million to $17.4 million for the second quarter of 2012 compared to $8.9 million in the second quarter of 2011. This 95.5% increase in G&A expense was primarily due to a $7.7 million litigation settlement accrual recorded in the second quarter of 2012 and increased legal fees and financing transaction costs.

For the first six months of 2012, operating expenses totaled $78.0 million, compared to $77.2 million in the first half of 2011. Total R&D expenses for the six months ended June 30, 2012 decreased $5.8 million or 10.2% compared to the same period in 2011, primarily due to the termination of the insulin supply agreement partially offset by increased clinical trial related activities in the first half of 2012. G&A expenses increased by $6.5 million, or 31.7%, to $27.2 million for the first half of 2012 as compared to $20.7 million in the same period in 2011. The increase was primarily due to the $7.7 million litigation settlement accrual recorded in the second quarter of 2012 and increased legal fees and financing transaction costs, partially offset by the decrease in salary related costs as a result of the February 2011 reduction in force.

The net loss applicable to common stockholders for the second quarter of 2012 was $36.6 million, or $0.23 per share based on 159.9 million weighted average shares outstanding, compared with a net loss applicable to common stockholders of $44.5 million, or $0.37 per share based on 121.7 million weighted average shares outstanding for the second quarter of 2011. The number of common shares outstanding at June 30, 2012 was 199,300,833.

Cash, cash equivalents and marketable securities were $32.0 million at June 30, 2012 and $3.2 million at December 31, 2011.

Conference Call

MannKind management will host a conference call to discuss these results today at 9:00 a.m. Eastern Time. To participate in the call please dial (800) 447-0521 or (847) 413-3238 and use the participant passcode: 32993955. To listen to the call via the Internet please visit http://www.mannkindcorp.com. The web site replay will be available for 14 days. A telephone replay will be accessible for approximately 14 days following completion of the call by dialing (888) 843-7419 or (630) 652-3042 and use the participant passcode: 3299 3955#.

Presenting from the Company will be:

• Chairman and Chief Executive Officer Alfred Mann
• President and Chief Operating Officer Hakan Edstrom
• Corporate Vice President and Chief Financial Officer Matthew Pfeffer

http://www.bioportfolio.com/news/article/1130902/Mannkind-Corporation-Reports-2012-Second-Quarter-Financial-Results.html