MannKind Corporation Reports 2013 Third Quarter Financial Results - Conference Call to Begin Today at 5:00 PM ET - VALENCIA, Calif.--(BUSINESS WIRE)

Corporation Reports 2013 Third Quarter Financial Results

Conference Call to Begin Today at 5:00 PM ET -

VALENCIA, Calif.--(BUSINESS WIRE)--November 4, 2013--MannKind

Corporation (Nasdaq:MNKD) today reported financial results for the

third quarter ended September 30, 2013.

For the third quarter of 2013, total operating expenses were $44.8

million, compared to $35.5 million for the third quarter of 2012, an

increase of $9.3 million. Research and development (R&D) expenses were

$27.3 million for the third quarter of 2013 compared to $25.5 million

for the same quarter in 2012, an increase of $1.8 million, or 7%,

primarily due to an increase in non-cash stock compensation expense,

partially offset by a decrease in clinical trial related expenses with

the completion of studies 171 and 175 last quarter. General and

administrative (G&A) expenses increased by $7.4 million to $17.5 million

for the third quarter of 2013 compared to $10.1 million in the third

quarter of 2012. This 73.3% increase in G&A expense was primarily due to

an increase in non-cash stock compensation expense of $6.7 million in

the third quarter of 2013 compared to the same quarter of the prior year.

For the nine months of 2013, operating expenses totaled $122.8 million,

compared to $113.5 million for the same period in 2012. Total R&D

expenses for the nine months ended September 30, 2013 increased $4.5

million, or 5.9%, compared to the same period in 2012, primarily due to

an increase in non-cash stock compensation expense partially offset by a

decrease in clinical trial related expense in 2013 with the completion

of studies 171 and 175 in the second quarter of 2013. G&A expenses

increased by $4.8 million, or 12.9%, to $42.1 million for the nine

months of 2013 as compared to $37.3 million in the same period in 2012.

The increase was primarily due to increased stock compensation expense

and professional fees in 2013 partially offset by the $7.7 million

litigation settlement accrual recorded in 2012.

The net loss applicable to common stockholders for the third quarter of

2013 was $50.8 million, or $0.17 per share based on 296.4 million

weighted average shares outstanding, compared with a net loss applicable

to common stockholders of $42.8 million, or $0.22 per share based on

190.5 million weighted average shares outstanding for the third quarter

of 2012. The number of common shares outstanding at September 30, 2013

Cash and cash equivalents were $93.8 million at September 30, 2013 and

$61.8 million at December 31, 2012. Subsequent to September 30, 2013,

the Company received $45.0 million in proceeds from the exercise of

warrants issued in MannKind's October 2012 public offering.

Additionally, The Mann Group exercised warrants resulting in the

issuance of 30,000,000 restricted shares of MannKind's common stock in

exchange for the cancellation of $78.0 million in outstanding principal

indebtedness owed by MannKind under the parties' loan arrangement.

Concurrently with the cancellation of principal indebtedness, MannKind

capitalized into new principal indebtedness approximately $7.9 million

of accrued interest. In addition, in October 2013, the promissory note

underling the loan arrangement with The Mann Group was amended to, among

other things, extend the maturity date of the loan until January 5, 2020

and extend the date through which the Company can borrow under the loan

arrangement to December 31, 2019.

MannKind management will host a conference call to discuss these results

today at 5:00 p.m. Eastern Time. To participate in the call please dial

(800) 447-0521 or (847) 413-3238 and use the participant passcode:

34087264. To listen to the call via the Internet please visit http://www.mannkindcorp.com.

The web site replay will be available for 14 days. A telephone replay

will be accessible for approximately 14 days following completion of the

call by dialing (888) 843-7419 or (630) 652-3042 and use the participant

passcode: 3408 7264#.

About MannKind Corporation

MannKind Corporation (Nasdaq: MNKD) focuses on the discovery,

development and commercialization of therapeutic products for patients

with diseases such as diabetes. Its lead product candidate, AFREZZA ,

has completed Phase 3 clinical trials.

MannKind maintains a website at http://www.mannkindcorp.com to

which MannKind regularly posts copies of its press releases as well as

additional information about MannKind. Interested persons can subscribe

on the MannKind website to e-mail alerts that are sent automatically

when MannKind issues press releases, files its reports with the

Securities and Exchange Commission or posts certain other information to

Forward-Looking Statements

This press release contains forward-looking statements that involve

risks and uncertainties. Words such as "believes," "anticipates,"

"plans," "expects," "intend," "will," "goal," "potential" and similar

expressions are intended to identify forward-looking statements. These

forward-looking statements are based upon the Company's current

expectations. Actual results and the timing of events could differ

materially from those anticipated in such forward-looking statements as

a result of these risks and uncertainties, which include, without

limitation, difficulties or delays in obtaining regulatory feedback or

completing and analyzing the results of clinical studies, MannKind's

ability to manage its existing cash resources or raise additional cash

resources, stock price volatility and other risks detailed in MannKind's

filings with the Securities and Exchange Commission, including the

Annual Report on Form 10-K for the year ended December 31, 2012 and

periodic reports on Form 10-Q and Form 8-K. You are cautioned not to

place undue reliance on these forward-looking statements, which speak

only as of the date of this press release. All forward-looking

statements are qualified in their entirety by this cautionary statement,

and MannKind undertakes no obligation to revise or update any

forward-looking statements to reflect events or circumstances after the

date of this press release.

MannKind Corporation

Chief Financial Officer