MannKind falls after registering large offering
NEW YORK (AP) — Shares of diabetes drug developer MannKind Corp. fell Monday after the company said it may sell up to $500 million in common and preferred stock, warrants, and debt securities.
The Valencia, Calif., company registered the proposed offering with the Securities and Exchange Commission on Friday. The filing does not mean MannKind will make an offering, and if it does make an offering, it will not necessarily be worth the full $500 million.
The company had 199.4 million shares outstanding as of Aug. 6.
MannKind has been trying to win marketing approval for its inhaled insulin Afrezza for several years, but the Food and Drug Administration has not approved Afrezza or the inhaler that delivers the product. MannKind expects to complete new studies in the second quarter of next year and wants to file that data with the FDA during the third quarter of 2013.
MannKind shares fell 20 cents, or 7.4 percent, to $2.50 in afternoon trading. The stock has traded between $1.57 and $3.95 in the last 12 months.