http://www.morningstar.com/earnings/48359228-mannkind-corp-mnkd-q4-2012.aspx

MannKind Corp MNKD
Q4 2012 Earnings Call Transcript

Transcript Call Date 02/11/2013

Operator: Welcome to the MannKind Corporation Fourth Quarter and Year End 2012 Conference 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 February 11, 2013.

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 afternoon, and thank you for participating in today's call. I will be summarizing our financial results for 2012 as reported earlier today, Hakan will then discuss our current operations and Al will conclude with a brief 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 is possible that 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 is accurate only as of the date of this live broadcast February 11, 2013. We undertake no obligation to revise or update any statements to reflect events or circumstances after the date of this call.

So turning to the financials; for the fourth quarter of 2012, total operating expenses were $33.5 compared to $30.6 million for the fourth quarter of 2011 and $35.5 million for the third quarter of 2012. R&D expenses were $25.3 million for the fourth quarter of 2012 compared to $20.2 million for the fourth quarter of 2011 and $25.5 million for the third quarter of 2012. The increase in R&D expenses for the fourth quarter of 2012 compared to the same quarter in 2011 was primarily due to an increase in clinical trial related activities as trials 171 and 175 were initiated in the fourth quarter of 2011, partially offset by the absence of insulin purchases in the fourth quarter of 2012 related to the termination of our insulin product in 2011. There was a slight decrease in R&D expense this quarter for last quarter due to the clinical trial related activities. General and administrative expenses were $8.2 million for the fourth quarter of 2012 compared to the $10.3 million for the fourth quarter of 2011 and $10.1 million for the third quarter of 2012. General and administrative expenses were higher in previous competitive quarters, primarily due to a litigation settlement accrual related to securities and derivative actions.

Other expense of $13.3 million for the fourth quarter of 2012 was primarily due to a non-cash non-recurring adjustment in the fair value of forward purchase contract with a related party, which was settled in December of 2012. The net loss applicable to common stockholders for the fourth quarter of 2012 was $51.8 million or $0.23 per share based on 229.2 million weighted average shares outstanding compared with the net loss applicable to common stockholders of $36.4 million or $0.30 per share on 122.4 million weighted average shares outstanding for the fourth quarter of 2011.

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