MannKind (MNKD) has pushed itself closer to the top of a short list of biotech companies that have raised in excess of $1 billion without having a product on the market.
Last week, the company raised $250 million in two registered direct offerings totaling 27 million shares, nudging its total financing to more than $1.4 billion.
Chairman and CEO Alfred Mann purchased 15.9 million of these shares at Monday's close of $9.41. Two groups of undisclosed investors, including accounts managed by Legg Mason, bought 11.1 million shares at $9.03 per share, a 4% discount to MNKD's close on Monday. The shares were sold from an existing shelf registration.
At June 30, Mann and his family owned 42.4% of the 73.5 million MNKD shares outstanding. He now has invested $566 million in the company, but has committed to putting even more skin in the game, as Mann also established a new $350 million credit facility for MNKD, which replaces a previous $150 million loan agreement.
At June 30, the company had $284 million in cash, including the $150 million loan arrangement. Its six-month operating loss was $145 million, and its accumulated deficit at June 30 was $933 million.
The financings are expected to fund MNKD through 3Q09 and the launch of its first product. The company plans to submit an NDA in December 2008 for its Technosphere Insulin System, which is in Phase III testing to treat diabetes (see "Big Raisers").
The company's only other clinical compound is MKC1106-PP. The DNA vector with two synthetic peptides is in a Phase I trial to treat solid malignancies.