MannKind Corporation (MNKD) said on Wednesday that it has entered into up to $500 million strategic financing agreement with funds managed by Blackstone (BX) after its second-quarter (Q2) revenue missed Wall Street expectations.
“The funding will support the expansion of our commercial team in preparation for the anticipated launch of the pediatric indication for Afrezza, if approved, continued pipeline advancement, potential business development opportunities, and general corporate purposes,” MannKind CEO Michael Castagna said.
Afrezza is an inhaled insulin that starts lowering blood sugars in about 12 minutes for adults living with type 1 or type 2 diabetes. The company is now looking to expand its use to pediatric patients, and a U.S. Food and Drug Administration ruling on the application is expected in early our third quarter.
The up to $500 million senior secured credit facility consists of a $75 million initial term loan funded at closing, a $125 million delayed draw term loan (DDTL) available for the next 24 months, subject to customary drawdown conditions, and an additional $300 million uncommitted DDTL available at the mutual agreement of MannKind and Blackstone.
MNKD stock is down by 40% this year and by about 24% over the past 12 months.
MannKind on Wednesday reported Q2 revenues of $76.5 million, marking a growth of 6% year-on-year (YoY) but below an analyst estimate of $77.82 million.
The YoY increase was spurred by an increase in royalties and Afrezza revenue, which offset a decline in collaborations and services revenues and a dip in net revenue for V-Go, the company's wearable insulin delivery device.
Adjusted net income came in at $0.05 for the three months through the end of June, in line with estimates.
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