MannKind Raises Over $50 Million (MNKD, PFE)

MannKind Corporation (NASDAQ: MNKD) is getting hit after the company announced that it priced a secondary offering of 7,400,000 shares of its common stock.  While the press release does not say what price the deal came at, the syndicate group told us this went out at $7.35 per share.  The company’s chairman, CEO, and principal stockholder, Alfred E. Mann, is purchasing 1,000,000 of these shares from the underwriters.

This figure comes to north of $54 million before deducting fees.  All shares are being sold by the company itself, so all proceeds from the offering will head into the MannKind coffers.  Jefferies is listed as the sole book-running manager, and the co-manager is listed as Rodman & Renshaw. The underwriters a 30-day over-allotment option to purchase up to an additional 960,000 shares.

It was just in June that the company closed upon the purchase of the insulin assets and facility from Pfizer, Inc. (NYSE: PFE).  That was listed as only a $3 million transaction.

MannKind shares are down 9.5% at $7.36 as of 9:50 on almost 1.35 million shares.  Its 52-week trading range is $2.00 to $9.25.

JON C. OGG
AUGUST 5, 2009