(By Alexander Crawford)
MannKind Corp (MNKD) appears to be getting closer to bringing its inhaled insulin therapy Afrezza to market, proposing a $370 million debt offering to fund its recently FDA-confirmed trial designs for the inhaler. The market gladly welcomed the news – MNKD stock rose nearly 17% on Friday.
The FDA rejected Afrezza in January, asking for two more clinical trials to demonstrate that a second-generation version of the device called Dreamboat is equivalent to the first-generation inhaler MedTone, Reuters reports. Last month, the FDA confirmed MannKind’s design of the two additional Phase III trials.
When the trial designs were confirmed in August, CRT Capital Group analyst Liah Hartman told Reuters, “Ultimately this could be an excess of a billion dollar drug, but how quickly it gets to the market is a real question. It is not going to be in the market for two years.”
Last month Reuters also mentioned concerns over the company raising enough capital to fund the trials, which seemingly have been set aside with the market reaction to Friday’s news of the $370 million debt offering.
The company plans to offer senior secured discount notes due 2017, expected to yield gross proceeds of approximately $370 million, according to the company’s press release.
Reuters reports that MannKind expects to complete both studies during 2012 and to submit the results as an amendment to the new drug application by early 2013.
Do you think that MannKind will successfully bring Afrezza to market? For a greater look into MannKind stock, we crunched some numbers for you:
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.