MannKind to receive second $40M tranche from Deerfield
MannKind Corp. (NASDAQ:MNKD) said it will receive $40 million from Deerfield Management in the second tranche of a potential $160 million debt financing comprising 9.75% senior secured notes due 2019. The tranche was triggered after MannKind reported that Afrezza met the primary endpoint in a pair of Phase III trials to treat Type I and Type II diabetes and also "did not show any adverse safety issue that would reasonably be expected to prevent approval" of the dry powder formulation of insulin administered with an inhaler. The company plans to resubmit an NDA for Afrezza next quarter.
MannKind closed up 11% on Wednesday after announcing the data, but gave back all its gains on Thursday, closing off $0.95 (13%) to $6.64, after an analyst questioned the commercial prospects of Afrezza (see BioCentury, Aug. 15). ...