MannKind losses since 1991 inception total more than $716 million

By Lisa Kerner

Charlotte, N.C., Nov. 2 - MannKind Corp. said since that its inception in 1991 it has accumulated net losses of $716.6 million and negative cash flow from operations of $448.3 million, a trend that is unlikely to change in the foreseeable future, according to a form 10-Q filing with the Securities and Exchange Commission.

The company recently entered into a $150.0 million loan arrangement with its principal stockholder that should allow MannKind to fund operations through the first quarter of 2007.

MannKind expects it will need to raise additional capital.

For the third quarter of 2006, MannKind's total operating expenses almost doubled to $61.1 million, from $32.9 million for the third quarter of 2005.

Research and development expenses rose by $26.3 million to $50.8 million for the quarter from the prior-year period.

The net loss for the third-quarter 2006 of $61.0 million, or $1.23 per share, was up from a net loss of $31.7 million, or $0.73 per share, for the prior-year period.

"In the past quarter, we achieved several significant milestones," said chief executive officer Alfred Mann in a company news release.

"We announced the results of an important study: Study 014, a six-month phase 3 trial that demonstrated no adverse effect on pulmonary function."

Mann also announced that the company broke ground in Danbury, Conn. for the expansion of its commercial manufacturing facility.

Operating expenses for the nine months of 2006 were also up at $162.0 million, from $83.1 million in the first nine months.

The company reported research and development expenses for the nine months of $132.1 million, up $65.3 million from the same period in 2005.

MannKind's net loss for the nine-month period of 2006 was $159.3 million, or $3.20 per share, compared to $81.0 million, or $2.23 per share.

During the nine months ended Sept. 30, MannKind we used $134.7 million of cash for operations, with financing activities providing $53.6 million.

MannKind is a Valencia, Calif.-based biopharmaceutical company.

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