Staff Reduction Helps MannKind Narrow LossesThursday, May 10, 2012
A workforce reduction helped Valencia-based MannKind Corp. reduce costs and narrow losses in the first quarter ended March 31.
The biopharmaceutical company whose lead product, an inhaled version of insulin is in late-stage clinical trials, reported a net loss of $38.2 million or $0.27 per share based on 143.2 million shares outstanding, compared with a net loss of $41.5 million or $0.34 per share based on 121.1 million shares outstanding in the same period a year ago.
The company was able to reduce total operating expenses by $4.1 million to $33.9 million during the quarter. Research and development expenses declined by $2.1 million to $24.2 million. The company attributed the decline on both fronts to a decrease in staffing in February 2011.
The company, which focuses on the discovery, development and commercialization of therapeutics for diseases such as diabetes and cancer, had no revenues in the quarter.
The company yesterday amended its note with The Mann Group LLC, an entity controlled by the company’s principal stockholder, extending the maturity date of a $350 million loan from March 31, 2013 to July 1, 2013. This means the company can continue to borrow under the amended terms of the note until June 30, 2012.
During the first quarter of 2012, the company borrowed $6.3 million under the loan agreement and $38.8 million remains available to borrow.