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Earnings Call
February 27, 2018
©2018 MannKind Corporation. All rights reserved. No copying or distribution of this material may be made without written consent of MannKind Corporation.
Cautionary Statement
Today’s call includes forward-looking statements relating to the development,
commercialization and benefits of our products and investigational product
candidates, including AFREZZA®, that are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
projected herein. The words "believe," "expect," "intend," "anticipate," "plan,"
variations of such words, and similar expressions identify forward-looking
statements, but their absence does not mean that a statement is not forward-
looking. These forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties, and assumptions
that are difficult for us to predict and include, without limitation, our ability
to generate significant product sales, our ability to manage our existing cash
resources or raise additional cash resources, stock price volatility and other
risks detailed in MannKind’s filings with the Securities and Exchange
Commission. For detailed information about the risks and uncertainties that
could cause actual results to differ materially from those implied by, or
anticipated in, these forward looking statements, please refer to our current
and periodic reports filed with the Securities and Exchange Commission from
time to time, including our annual report on Form 10-K for the year ended
December 31, 2017.
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Today’s Agenda
Q&A All
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David M. Kendall, MD
Corporate Vice President and Chief Medical Officer
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Q4 and YE 2017 Overview
Michael Castagna
Chief Executive Officer
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Transformational Growth is Built Around Afrezza
Sustained
Growth
Stability (2018)
(2017)
Survival
(2016)
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Key Highlights Since Jan 2017
Successfully transitioned into a fully integrated biopharmaceutical
company
– Established experienced executive team and expanded talent base
– Built core commercial, medical and back-end capabilities that are scalable
– Positioned MannKind to be at the forefront of diabetes treatment and
technology
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Reduced or Restructured >$80M in Deerfield and
Senior Convertible Debt Over Past 12 Months
102.7 (15.0)
100.0
Deerfield
(14.0) Conversion
Up To
80.0 (50.0)
$M
60.0
40.0 2017
20.0 $5.15
Convertible
Convertible note was moved 4 years from Oct 2017 note
0.0
31-Dec-16 2Q2017 4Q2017 2018/2019 2019 2020* 2021
*Mann Group debt of $80M not included in this summary due to initial
recapitalization focus on near term maturities
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Financial Review
Steven B. Binder
Chief Financial Officer
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Recap Progress – Efficient Use of Equity
Raised +$58M
Reduced debt -$19M
Convertible debt $51M - $75M
Raised cash and reduced debt with equity for potential combined
value of $128M-$152M at an average of $3.80 - $4.50/share
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2017 Results
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We Achieved Guidance on Net Revenue and Cash
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Commercial Review
Pat McCauley
Chief Commercial Officer
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4Q Commercial Highlights
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Afrezza® Grows Across Key Metrics in 2017
80%
60%
40%
20%
0%
NRx TRx New Writers
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MannKind Promotional Efforts Accelerate
TRx Growth in 4Q
Afrezza® Prescription Counts by Month
2,087 2,100
1,983
Prescription Count
1,842
1,746
1,524 1,564
1,343
1,210
1,130
1,055
973
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017
2,500
2,000
Prescription Count
1,500
1,000
500
0
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017 2018
250
221% Growth
4Q v 1Q
203 Top 10
200
Avg. TRx per Territory
142% Growth
140
4Q v 1Q
150 138
Top 25
94 107
100
78 97% Growth
65 4Q v 1Q
63 55
57 42
50
National
33 Avg.
-
1Q 2Q 3Q 4Q
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2017 Experienced 95% Cartridge Volume Growth:
Mix Highlights the Impact on Value Contribution
Volume Mix Value Contribution
100%
11%
90% 18%
30%
80%
70%
45%
60% 41%
50%
47%
40%
30%
0%
Q1 Cartridge Mix Q4 Cartridge Mix Q4 $ Value (est)
4U 8U 12U
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2018 Afrezza® Messaging Evolution:
18+ Million Patients (OADs, Basal, and MDIs)
Oral Antidiabetic Drugs (OADs)
Basal
Multiple Daily Injections (MDIs)
19%
• 7M+ Patients 44%
>2 OADs • Primary Care Focus 37%
• 6M+ Patients
Basal • Endocrinologist & Primary Care Focus
2017 focus
• 3-5M+ Patients
MDI • Endocrinology Focus
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Regional TV Commercial Pilot Insights:
Pilot Markets versus Non-Pilot Markets Show Early Signs of Impact
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2018: Commercial Team Strategic Priorities
Efficiency &
Execution
Strategic Cross-
Investment Functional
Decisions Alignment
Evolving
Maximize
Afrezza®
Sales Force
Selling
Capacity
Message
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Medical and Regulatory
Review
David Kendall, MD
Chief Medical Officer
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Research, Development and Medical Affairs
2018 Priorities
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Afrezza Clinical Program
2017 2018 2019- 2024
Pediatric PK study
(MKC-TI-155 part 1)
ADD-1 (MKC-TI-187)
(Afrezza dynamic dosing)
APEX (MKC-TI-190)
(Afrezza T1DM patient satisfaction)
STAT* (T1DM)
(Time in range CGM)
A-ONE* (T2DM)
(Afrezza One Drop)
Yale**
(closed loop)
SAD study
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MannKind 2018+
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Transformational Growth is Built Around Afrezza
Sustained
Growth
Stability (2018)
(2017)
Survival
(2016)
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Global Expansion Focus for Afrezza
>50% of the World’s Population
Nearly 12% or
114 million
Chinese
adults are
suffering from
diabetes
Targeted
Launched
80 million people in
Partnered India with diabetes;
average A1C is 10.
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Near Term Milestones and Key Events
The Foundation for Long-term Growth
Growth Trajectory Continues for Afrezza
FDA Label Change
Completion of STAT Trial (Afrezza+Dexcom) – ADA Submissions &
Publication
IND Filed for Treprostinil
Increase in Payor Coverage (continuing)
Recapitalization (ongoing)
Warrant Exchange
Equity Raise
Restructure/Reduce Debt
Shareholder Vote to Increase Authorized Shares
International Expansion
Receptor Life Sciences
One Drop Collaboration
Co-Promote or In-License Opportunities
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2018 Guidance
Pediatric
International expansion
US Afrezza
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Q&A
THANK YOU
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