http://www.morningstar.com/earnings/41905497-mannkind-corp-mnkd-q2-2012.aspx

MannKind Corp MNKD
Q2 2012 Earnings Call Transcript

Transcript Call Date 08/07/2012

Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the MannKind Corporation's Second Quarter 2012 Conference Call. My name is John and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, instructions will be given for the question-and-answer session. As a reminder, this call is being recorded today August 7, 2012.

Joining us today from MannKind are Chairman and CEO, Alfred Mann; President and COO, Hakan Edstrom; and Chief Financial Officer, Matthew Pfeffer.

I would now like to turn the call over to Matthew Pfeffer, Chief Financial Officer of MannKind Corporation. Please go ahead.

Matthew J. Pfeffer - Corporate VP and CFO: Good morning, and thank you for participating in today's call. I will summarize our financial results for the second quarter of 2012 as reported earlier today, Hakan will discuss our current operations and Al will conclude with an overview, before we open up the call to your questions.

Before we proceed further, please note that comments made during this call will include forward-looking statements within the meaning of Federal Securities laws. It's possible that the actual results could differ from these stated expectations. For factors which could cause actual results to differ from expectations, please refer to the reports filed by the Company with the Securities and Exchange Commission under the Securities and Exchange Act of 1934. This conference call contains time-sensitive information that's accurate only as of the date of this live broadcast, August 7, 2012. We undertake no obligation to revise or update any statements to reflect events or circumstances after the date of this call.

For the second quarter of 2012, total operating expenses were $44.1 million, compared to $33.9 million in the first quarter of 2012, and $39.2 million in the second quarter of 2011. R&D expenses were $26.6 million for the second quarter of 2012 compared to $24.2 million for the first quarter of 2012 and $30.3 million for the second quarter of 2011. The decrease in R&D expenses for the second quarter of 2012 compared to the same quarter in 2011 was primarily due to settlement of the terminated insulin supply agreement in the second quarter of 2011, partially offset by an increase clinical trial related activities in 2012, which also resulted in increased R&D expenses this quarter compared to last quarter.

General and administrative expenses were $17.4 million for the second quarter of 2012 compared to $9.8 million for the first quarter of 2012 and $8.9 million for the second quarter of the previous year. General and administrative expenses increased this quarter primarily due to $7.7 million litigation settlement accrual related to securities and derivative actions, which I will describe shortly. The net loss applicable to common stockholders for the second quarter of 2012 was $36.6 million or $0.23 per share based on a weighted average of 159.9 million shares outstanding, compared to a net loss applicable to common stockholders of $44.5 million or $0.37 per share on 121.7 million in weighted average shares outstanding for the second quarter of 2011.

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