MannKind Corporation announced it has entered into a definitive purchase agreement for a $175 million private placement of newly issued shares of common stock. Institutional investors will invest $87.5 million in the private placement, while Alfred E. Mann, chairman of the board, chief executive officer and principal stockholder will invest a matching $87.5 million. Upon closing of the financing, MannKind will issue approximately 17.1 million shares of common stock and warrants to purchase up to 3.4 million shares at $12.228 per share. The company will use the net proceeds from the financing primarily to fund the continuing development program for its TechnoSphere Insulin System, currently in phase 3 clinical trials in the United States and Europe. MannKind is far behind other pharmaceutical giants in the development of an inhaled Insulin product, but Mann has maintained that his company’s product will be a strong seller once it hits the market and will control a considerable portion of the multi-billion dollar inhaled insulin market he sees on the horizon.
