Westlake Village biotech company MannKind restructures debt
MannKind announced Oct. 23 that it had restructured debt due in 2018, exchanging $27.7 million in convertible notes for $23.7 million due in October of 2021 and nearly 1 million shares of its common stock.
The new convertible senior subordinated exchange notes have a rate of 5.75 percent, the Westlake Village-based biotech company said in a news release. Its $10 million credit facility with Deerfield Management Company was also extended from the end of October through Jan. 15, 2018, with some of the outstanding principal to be exchanged for common stock.
The move follows a recent conversion of its remaining Series A and B stock warrants into 1.3 million shares, freeing up around 8.4 million shares of Mannkind common stock.
“These transactions, in combination with the recent registered direct offering, are expected to enable us to execute our near-term business plan,” said CEO Michael Castagna.
The company also announced that it was seeking approval of its inhalable insulin product Afrezza in Brazil, in partnership with Brazilian company Biomm.
Submitted to the Brazilian Health Regulatory Agency, called Anvisa, the registration includes newly updated label information for Afrezza that was approved by the U.S. Food and Drug Administration earlier in the month.
“We are excited to file our first international application for approval of Afrezza in Brazil, which is in the top 10 countries with the highest diabetes rates in the world according to the World Health Organization,” Castagna said. “Biomm’s expertise in the diabetes market allowed the dossier to be updated quickly with the revised prescribing information, thereby providing physicians and patients, if and when Afrezza is approved in Brazil, with accurate information to achieve better glycemic control at mealtime.”
If approved, MannKind agreed to supply Afrezza to Biomm for promotion, distribution and sale.
“We intend to offer Brazilian patients an important technological innovation. Like all chronic diseases, diabetes needs prolonged adherence to treatment. Therefore, more comfortable and effective options may be a differentiating attribute that has the potential to contribute to the quality of life of the patient,” said Biomm CEO Heraldo Marchezini.
Shares for MannKind ended the day down nearly 10 percent to $3.70.
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