Early yesterday, MannKind announced a $61 million offering of common stock – 10,166,600 shares priced at $6.00/share – expected to close around October 13. Net proceeds are projected to total ~$57.7 million, after deducting the placement agent’s fees, and this sizable cash infusion will go toward working capital and general corporate purposes. This stock offering comes at a potentially pivotal moment for the company, as the FDA just recently approved an important label update for inhaled insulin Afrezza that reflects faster onset/faster offset, advancing MannKind’s product into a new category of ultra-rapid-acting mealtime insulins. We expect this label revision to boost sales, and this in conjunction with the $58 million financing could greatly extend the company’s runway. MannKind had $43 million in cash remaining as of June 30, 2017. See our coverage of MannKind’s 2Q17 earnings call for a deeper dive.
-- by Payal Marathe and Kelly Close