MannKind secures up to $500 million strategic financing from Blackstone

NEW YORK/DANBURY - MannKind Corporation (NASDAQ:MNKD), a pharmaceutical company with a "GREAT" financial health score according to InvestingPro, has entered into a strategic financing agreement worth up to $500 million with funds managed by Blackstone, the companies announced Wednesday.

The agreement provides MannKind with an initial $75 million term loan at closing, followed by a $125 million delayed draw term loan available over the next 24 months, subject to drawdown conditions. An additional $300 million uncommitted delayed draw term loan may be accessed upon mutual consent of both parties.

The five-year facility, which matures in August 2030, carries a calculated SOFR variable interest rate plus 4.75%, which may increase by 25 basis points if a total leverage ratio is exceeded. The agreement does not require scheduled amortization payments during the term.

Michael Castagna, CEO of MannKind, said the non-dilutive funding will support commercial team expansion in preparation for the potential launch of a pediatric indication for Afrezza, pipeline advancement, business development opportunities, and general corporate purposes.

"This strategic financing significantly increases our operating flexibility and provides us substantial access to non-dilutive capital on favorable terms, complementing our strong cash position," Castagna stated in the press release. The company’s strong financial position is evidenced by its current ratio of 2.36, indicating ample liquidity to meet short-term obligations.

Jonathan Brayman, Managing Director at Blackstone Credit & Insurance, cited MannKind’s "strong commercial track record, diversified product portfolio, and exceptional management team" as factors in the investment decision.

MannKind focuses on developing and commercializing inhaled therapeutic products for patients with endocrine and orphan lung diseases, including diabetes and nontuberculous mycobacterial lung disease.

The announcement was made based on a company press release issued Wednesday.

In other recent news, MannKind Corporation reported its Q1 2025 earnings, revealing that revenue exceeded expectations, although earnings per share slightly missed forecasts. RBC Capital adjusted its price target for MannKind, lowering it to $8.00 from $10.00 but maintained an Outperform rating, citing an overly pessimistic view of MannKind’s commercial products. Meanwhile, H.C. Wainwright assumed coverage of MannKind with a Buy rating and set a price target of $9.00, based on a discounted cash flow valuation.

Additionally, MannKind plans to present findings from its INHALE-1 clinical trial at the American Diabetes Association’s 85th Scientific Sessions, focusing on the efficacy and safety of its inhaled insulin product, Afrezza, for pediatric use. In leadership changes, MannKind announced the departure of its Chief Medical Officer, Burkhard Blank, with a transition plan in place. Blank will remain as a non-executive employee until August 1, 2025. These developments come amid various strategic and operational shifts within the company.

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