MannKind (MNKD) 10-Q/A 10 Aug 16 2016 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document Information [Line Items]
Document Type	10-Q/A
Amendment Flag	true
AmendmentDescription	This Amendment No. 1 on Form 10-Q/A (this “Amendment”) amends the Quarterly Report on Form 10-Q of MannKind Corporation for the quarter ended June 30, 2016, originally filed with the Securities and Exchange Commission on August 9, 2016 (the “Original Filing”). We are filing this Amendment for the sole purpose of correcting certain errors in the Interactive Data Files included with the Original Filing as Exhibit 101 thereto. Amended Interactive Data Files are filed with this Amendment as Exhibit 101. In connection with the filing of this Amendment and pursuant to the rules of the Securities and Exchange Commission, we are also filing with this Amendment a new certification pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, by our Chief Executive Officer and Chief Financial Officer, which is attached to this Amendment as Exhibit 31. Except as described above, no other changes have been made to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, and we have not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the Original Filing other than as indicated in this Amendment.
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	MNKD
Entity Registrant Name	MANNKIND CORP
Entity Central Index Key	899,460
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		478,048,448

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 63,733	$ 59,074
Receivables from collaboration		23
Inventory	2,866
Deferred costs from collaboration	22,742	13,539
Prepaid expenses and other current assets	1,423	4,018
Total current assets	90,764	76,654
Property and equipment - net	47,422	48,749
Other assets	1,248	1,009
Total assets	139,434	126,412
Current liabilities:
Accounts payable	2,849	15,599
Accrued expenses and other current liabilities	10,252	7,929
Facility financing obligation	75,452	74,582
Deferred sales from collaboration	26,882	17,503
Deferred payments from collaboration	135,229	140,231
Purchase commitment loss - current	20,986	12,475
Warrant liability	18,056
Total current liabilities	289,706	268,319
Note payable to principal stockholder	49,521	49,521
Sanofi loan facility and profit/loss share obligation	69,978	62,371
Senior convertible notes	27,623	27,613
Non-current purchase commitment loss	52,515	53,692
Other liabilities	16,668	15,225
Total liabilities	506,011	476,741
Commitments and contingencies
Stockholders' deficit:
Undesignated preferred stock, $0.01 par value - 10,000,000 shares authorized; no shares issued or outstanding at June 30, 2016 and December 31, 2015
Common stock, $0.01 par value - 700,000,000 and 550,000,000 shares authorized at June 30, 2016 and December 31, 2015, respectively; 477,741,850 and 428,670,943 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	4,777	4,287
Additional paid-in capital	2,546,727	2,508,633
Accumulated other comprehensive loss	(21)	(20)
Accumulated deficit	(2,918,060)	(2,863,229)
Total stockholders' deficit	(366,577)	(350,329)
Total	$ 139,434	$ 126,412

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Undesignated preferred stock, par value	$ 0.01	$ 0.01
Undesignated preferred stock, shares authorized	10,000,000	10,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	700,000,000	550,000,000
Common stock, shares issued	477,741,850	428,670,943
Common stock, shares outstanding	477,741,850	428,670,943

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue	$ 0	$ 0	$ 0	$ 0
Operating expenses:
Research and development	4,310	7,737	9,440	17,115
Selling, general and administrative	11,110	10,623	18,460	21,102
Product manufacturing	3,704	5,691	11,236	7,573
Total operating expenses	19,124	24,051	39,136	45,790
Loss from operations	(19,124)	(24,051)	(39,136)	(45,790)
Other (expense) income	(5,959)	(10)	(5,892)	1,403
Interest expense on note payable to principal stockholder	(721)	(721)	(1,443)	(1,435)
Interest expense on notes	(4,181)	(4,131)	(8,401)	(13,753)
Interest income	26	3	41	6
Net loss	$ (29,959)	$ (28,910)	$ (54,831)	$ (59,569)
Net loss per share - basic and diluted	$ (0.07)	$ (0.07)	$ (0.12)	$ (0.15)
Shares used to compute basic and diluted net loss per share	455,305	401,018	442,082	399,972

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net loss	$ (29,959)	$ (28,910)	$ (54,831)	$ (59,569)
Other comprehensive loss:
Other comprehensive (loss) income - cumulative translation (loss) gain	(2)	1	(1)	(6)
Other comprehensive (loss) gain	(2)	1	(1)	(6)
Comprehensive loss	$ (29,961)	$ (28,909)	$ (54,832)	$ (59,575)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (54,831)	$ (59,569)
Adjustments to reconcile net loss to net cash provided by (used) in operating activities:
Depreciation and accretion	2,058	6,359
Stock-based compensation expense	2,628	3,778
Interest incurred through borrowings under Sanofi Loan Facility	2,604	265
Loss on disposal of property and equipment		12
Loss on foreign currency exchange	2,023
Warrant fair value adjustment	5,306
Warrant issuance cost	653
Interest on note payable to principal stockholder	1,443	1,435
Other, net	717	(6)
Changes in assets and liabilities:
Inventory	(2,866)	(10,146)
Receivables from Collaboration	23	45,688
Prepaid expenses and other current assets	2,595	6,130
Deferred costs from collaboration		(10,831)
Other assets	(238)	(866)
Accounts payable	(12,532)	(2,236)
Accrued expenses and other current liabilities	2,663	(7,800)
Deferred sales from collaboration	9,379	12,968
Purchase commitment loss - current	8,312
Non-current purchase commitment loss	(12,204)
Other liabilities		30
Net cash used in operating activities	(42,267)	(14,789)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(1,144)	(8,737)
Proceeds from sale of property and equipment	17
Net cash used in investing activities	(1,127)	(8,737)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	734	12,820
Proceeds from direct placement	50,000
Issuance costs associated with the direct placement	(2,678)
Milestone payment		(4,220)
Other		40
Proceeds from issuance of common stock pursuant to ATM issuance		2,050
Payment of employment taxes related to vested restricted stock units	(3)	(818)
Net cash provided by financing activities	48,053	9,872
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	4,659	(13,654)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	59,074	120,841
CASH AND CASH EQUIVALENTS, END OF PERIOD	63,733	107,187
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
Interest paid in cash, net of amounts capitalized	4,608	6,644
Non-cash construction in progress and property and equipment		$ 623
Reclassification of deferred payments from collaboration to Sanofi Loan Facility and loss share obligation	5,003
Reclassification of deferred costs from loss on purchase commitment to deferred costs from collaboration	$ 9,202

Description of business and bas

Description of business and basis of presentation	6 Months Ended
	Jun. 30, 2016
Description of business and basis of presentation	1. Description of business and basis of presentation The accompanying unaudited condensed consolidated financial statements of MannKind Corporation and its subsidiaries (“MannKind,” the “Company,” “we” or “us”), have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 15, 2016 (the “Annual Report”). In the opinion of management, all adjustments, consisting only of normal, recurring adjustments, considered necessary for a fair presentation of the results of these interim periods have been included. The results of operations for the three and six months ended June 30, 2016 may not be indicative of the results that may be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates or assumptions. The more significant estimates reflected in these accompanying financial statements involve assessing long-lived assets and deferred costs for impairment, accrued expenses, valuation of stock-based compensation and the determination of the provision for income taxes and corresponding deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes and management must select an amount that falls within that range of reasonable estimates. This process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements. Business — Basis of Presentation In May 2016, pursuant to a previously filed Form S-3 Registration Statement, which was declared effective by the SEC on April 27, 2016, the Company sold in an underwritten public offering 48,543,692 shares of its common stock, together with warrants to purchase up to 48,543,692 shares of the Company’s common stock. Net proceeds from this offering were approximately $47.4 million after deducting discounts and commissions to the underwriters and paying for offering expenses, excluding any future proceeds from the exercise of the warrants. (see Note 14 — Warrants). At June 30, 2016, the Company’s capital resources consisted of cash and cash equivalents of $63.7 million. The Company expects to continue to incur significant expenditures to support commercial manufacturing and sales and marketing of Afrezza and the development of other product candidates. The facility agreement (the “Facility Agreement”) with Deerfield Private Design Fund II, L.P. (“Deerfield Private Design Fund”) and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) and the First Amendment to Facility Agreement and Registration Rights Agreement (the “First Amendment”) that resulted in additional sales of an additional tranche of notes (see Note 13 — Facility Agreement) requires the Company to maintain at least $25.0 million in cash and cash equivalents or available borrowings under the loan arrangement, dated as of October 2, 2007, between The Company and The Mann Group LLC (as amended, restated, or otherwise modified as of the date hereof, “The Mann Group Loan Arrangement”), as of the last day of each fiscal quarter. The Company will need to continue to incur expenses for the commercialization of Afrezza and will need to raise additional capital to finance such activities. The Company cannot be certain that it will be able to raise additional capital on favorable terms, or at all, which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. On August 11, 2014, the Company executed a license and collaboration agreement (the “Sanofi License Agreement”) with Sanofi-Aventis Deutschland GmbH (which subsequently assigned its rights and obligations under the agreement to Sanofi), pursuant to which Sanofi was responsible for global commercial, regulatory and development activities for Afrezza. The Sanofi License Agreement became effective on September 23, 2014. The Company manufactured Afrezza at its manufacturing facility in Danbury, Connecticut to supply Sanofi’s demand for the product pursuant to a supply agreement dated August 11, 2014 (the “Sanofi Supply Agreement”). The Sanofi License Agreement and Sanofi Supply Agreement terminated, effective April 4, 2016, following which the Company assumed responsibility for the worldwide development and commercialization of Afrezza from Sanofi. Under the terms of the transition agreement, Sanofi continued to fulfill orders for Afrezza in the United States until the Company began distributing MannKind-branded product to major wholesalers during the week of July 25, 2016. The Company expects to commence recognition, likely within the third quarter of 2016, the deferred sales from collaboration, deferred costs from collaboration, and deferred payments from collaboration deferred as of June 30, 2016, as a result of the termination of the transition agreement. Under the Sanofi License Agreement, worldwide profits and losses, which are determined based on the difference between the net sales of Afrezza and the costs and expenses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of Afrezza, are shared 65% by Sanofi and 35% by the Company until Sanofi ceases to distribute Afrezza. As a result of this loss share provision, and because the Company does not currently have the ability to estimate the amount of costs that would potentially be incurred related to the Sanofi License Agreement, the amount of up-front cash payment or milestone payments that could be recognized as revenue is not fixed or determinable. In connection with the Sanofi License Agreement, an affiliate of Sanofi provided the Company with a secured loan facility (the “Sanofi Loan Facility”) of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. Additional funding sources that are, or in certain circumstances may be, available to the Company, include approximately $30.1 million principal amount of available borrowings under The Mann Group Loan Arrangement. A portion of these available borrowings may be used to capitalize accrued interest into principal, upon mutual agreement of the parties, as it becomes due and payable under The Mann Group Loan Arrangement (see Note 5 — Related-party arrangements). The Company cannot provide assurances that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company is seeking and will need to raise additional capital, whether through a sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means, in order to continue the development and commercialization of Afrezza and other product candidates and to support its other ongoing activities. However, the Company cannot provide assurances that such additional capital will be available on acceptable terms or at all. Certain prior year balances in the Statement of Cash Flows have been reclassified to conform to current year presentation. Specifically Interest incurred through borrowing under Sanofi Loan Facility and interest on note payable to principal stockholder have been reclassified from Accrued and other current liabilities and Other liabilities, respectively. Fair Value of Financial Instruments — Deferred costs from collaboration Loss on purchase commitments — Warrants Recently Issued Accounting Standards — In May 2014, the FASB issued ASU No. 2014-09 related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. The Company is assessing the potential impact of the new standards on its consolidated financial statements and has not yet selected a method of adoption. In August 2014, the FASB issued ASU No. 2014-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company is evaluating the impact the adoption of ASU No. 2014-15 will have on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of ASU No. 2015-11 will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of ASU No. 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for us on January 1, 2019. The Company is evaluating the impact the adoption of ASU No. 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. For public business entities, the amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact the adoption of ASU No. 2016-09 will have on its consolidated financial statements.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventories	2. Inventories Inventories consist of the following (in thousands): June 30, 2016 December 31, 2015 Raw materials $ 1,491 $ — Work-in-process 1,155 — Finished goods 220 — Total Inventory $ 2,866 $ —

Property and equipment

Property and equipment	6 Months Ended
	Jun. 30, 2016
Property and equipment	3. Property and equipment Property and equipment — net consist of the following (dollar amounts in thousands): Estimated Useful Life (Years) June 30, 2016 December 31, 2015 Land — $ 3,435 $ 3,435 Buildings 39-40 21,590 21,590 Building improvements 5-40 60,584 60,584 Machinery and equipment 3-15 67,761 68,434 Furniture, fixtures and office equipment 5-10 4,114 4,114 Computer equipment and software 3 9,519 9,519 Construction in progress 437 586 167,440 168,262 Less accumulated depreciation and amortization (120,018 ) (119,513 ) Property and equipment — net $ 47,422 $ 48,749 The December 31, 2015 balances have been reclassified to the current year presentation by allocating the impairment of $140.4 million to the individual asset groups. Depreciation and amortization expense related to property and equipment for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Depreciation and amortization expense $ 589 $ 2,740 $ 1,179 $ 5,117

Accrued expenses and other curr

Accrued expenses and other current liabilities	6 Months Ended
	Jun. 30, 2016
Accrued expenses and other current liabilities	4. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Salary and related expenses $ 6,536 $ 5,662 Accrued interest 602 615 Construction in progress — 238 Other 3,114 1,414 Accrued expenses and other current liabilities $ 10,252 $ 7,929

Related-party arrangements

Related-party arrangements	6 Months Ended
	Jun. 30, 2016
Related-party arrangements	5. Related-party arrangements In October 2007, the Company entered into a $350.0 million loan arrangement with its principal stockholder. The Mann Group Loan Arrangement has been amended from time to time. On October 31, 2013, the promissory note underlying The Mann Group Loan Arrangement was amended to, among other things, extend the maturity date of the loan to January 5, 2020, extend the date through which the Company can borrow under The Mann Group Loan Arrangement to December 31, 2019, increase the aggregate borrowing amount under The Mann Group Loan Arrangement from $350.0 million to $370.0 million and provide that repayments or cancellations of principal under The Mann Group Loan Arrangement will not be available for reborrowing. As of June 30, 2016, the total principal amount outstanding under The Mann Group Loan Arrangement was $49.5 million, and the amount available for future borrowings was $30.1 million. Interest, at a fixed rate of 5.84%, is due and payable quarterly in arrears on the first day of each calendar quarter for the preceding quarter, or at such other time as the Company and The Mann Group mutually agree. All or any portion of accrued and unpaid interest that becomes due and payable may be paid-in-kind and capitalized as additional borrowings at any time and would be classified as non-current upon mutual agreement of both parties. As of June 30, 2016, the Company had accrued $7.8 million of interest in other long term liabilities. The Mann Group can require the Company to prepay up to $200.0 million in advances that have been outstanding for at least 12 months (less approximately $105.0 million aggregate principal amount that has been cancelled in connection with two common stock purchase agreements). If The Mann Group exercises this right, the Company will have 90 days after The Mann Group provides written notice (or the number of days to maturity of the note if less than 90 days) to prepay such advances. However, pursuant to a letter agreement entered into in August 2010, The Mann Group has agreed to not require the Company to prepay amounts outstanding under the amended and restated promissory note if the prepayment would require the Company to use its working capital resources. The Mann Group entered into a subordination agreement with Deerfield pursuant to which The Mann Group agreed with Deerfield not to demand or accept any payment under The Mann Group Loan Arrangement until the Company’s payment obligations to Deerfield under the Facility Agreement have been satisfied in full. Subject to the foregoing, in the event of a default under The Mann Group Loan Arrangement, all unpaid principal and interest either becomes immediately due and payable or may be accelerated at The Mann Group’s option, and the interest rate will increase to the one-year LIBOR calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum. All borrowings under The Mann Group Loan Arrangement are unsecured. The Mann Group Loan Arrangement contains no financial covenants. During the six months ended June 30, 2016, there were no additional borrowings under or amendments to The Mann Group Loan Arrangement. In May 2015, the Company entered into a sublease agreement with the Alfred Mann Foundation for Scientific Research (the “Mann Foundation”), a California not-for-profit corporation. The lease is for approximately 12,500 square feet of office space in Valencia, California and expires in April 2017. The office space contains the Company’s principal executive offices. Lease payments to the Mann Foundation for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Lease payments $ 67 $ 65 $ 133 $ 65 The Company has entered into indemnification agreements with each of its directors and executive officers, in addition to the indemnification provided for in its amended and restated certificate of incorporation and amended and restated bylaws (see Note 11 — Commitments and contingencies).

Senior convertible notes

Senior convertible notes	6 Months Ended
	Jun. 30, 2016
Senior convertible notes	6. Senior convertible notes Senior convertible notes consist of the following (in thousands): June 30, 2016 December 31, 2015 Senior Convertible notes Principal amount $ 27,690 $ 27,690 Unamortized premium 545 660 Unaccreted debt issuance costs (612 ) (737 ) Net carrying amount $ 27,623 $ 27,613 Issuance of 5.75% Senior Convertible Subordinated Exchange Notes due 2018 The 5.75% senior convertible notes due 2018 (the “2018 notes”) are the Company’s general, unsecured, senior obligations, except that the 2018 notes are subordinated in right of payment to the outstanding notes issued pursuant to the Facility Agreement and the Company’s borrowings under the Sanofi Loan Facility with an affiliate of Sanofi. The 2018 notes rank equally in right of payment with the Company’s other unsecured senior debt. The 2018 notes bear interest at the rate of 5.75% per year on the principal amount, payable semiannually in arrears in cash on February 15 and August 15 of each year, beginning February 15, 2016, with interest accruing from August 15, 2015. The 2018 notes mature on August 15, 2018. The 2018 notes are convertible, at the option of the holder, at any time on or prior to the close of business on the business day immediately preceding the stated maturity date, into shares of the Company’s common stock at an initial conversion rate of 147.0859 shares per $1,000 principal amount of 2018 notes, which is equal to a conversion price of approximately $6.80 per share, the same conversion price as that of the 2015 notes on the date of exchange. The conversion rate is subject to adjustment under certain circumstances described in an indenture governing the 2018 notes dated August 10, 2015 with US Bank (as successor trustee to Wells Fargo, National Association), including in connection with a make-whole fundamental change. If certain fundamental changes occur, such as share price being over $4.82 on date of conversion, the Company will be obligated to pay a make-whole premium on any 2018 notes converted in connection with such fundamental change by increasing the conversion rate on such 2018 notes. In such instances, the amount of the fundamental change make-whole premium will be based on the Company’s common stock price and the effective date of the applicable fundamental change. The Company can force conversion at $6.80 or 747.1 thousand shares. If the Company undergoes certain fundamental changes, except in certain circumstances, each holder of 2018 notes will have the option to require the Company to repurchase all or any portion of that holder’s 2018 notes. The fundamental change repurchase price will be 100% of the principal amount of the 2018 notes to be repurchased plus accrued and unpaid interest, if any. On or after the date that is one year following the original issue date of the 2018 notes, the Company will have the right to redeem for cash all or part of the 2018 notes if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for 20 or more trading days during the 30 consecutive trading day period ending on the trading day immediately prior to the date of the redemption notice. The redemption price will equal the sum of 100% of the principal amount of the 2018 notes to be redeemed, plus accrued and unpaid interest. Under the terms of the indenture, the conversion option can be net-share settled and the maximum number of shares that could be required to be delivered under the indenture, including the make-whole shares, is fixed and less than the number of authorized and unissued shares less the maximum number of shares that could be required to be delivered during the term of the 2018 notes under existing commitments. Applying the Company’s sequencing policy, the Company performed an analysis at the time of the offering of the 2018 notes and each reporting date since and has concluded that the number of available authorized shares at the time of the offering and each subsequent reporting date was sufficient to deliver the number of shares that could be required to be delivered during the term of the 2018 notes under existing commitments. The 2018 notes provide that upon an acceleration of certain indebtedness, including the 9.75% Senior Convertible Notes due 2019 (the “2019 notes”) and the 8.75% Senior Convertible Notes due 2019 (the “Tranche B notes”) issued to Deerfield pursuant to the Facility Agreement (see Note 13 — Facility Agreement), the holders may elect to accelerate the Company’s repayment obligations under the notes if such acceleration is not cured, waived, rescinded or annulled. There can be no assurance that the holders would not choose to exercise these rights in the event such events were to occur. The Company incurred approximately $0.8 million in issuance costs which are recorded as an offset to the 2018 notes in the accompanying condensed consolidated balance sheets. These costs are being accreted to interest expense using the effective interest method over the term of the 2018 notes. Accretion of debt issuance expense in connection with the 2018 notes during the three and six months ended June 30, 2016 were $64,000 and $126,000, respectively, and there was no accretion of debt issuance expense in connection with the 2018 notes during the three and six months ended June 30, 2015.

Collaboration arrangement

Collaboration arrangement	6 Months Ended
	Jun. 30, 2016
Collaboration arrangement	7. Collaboration arrangement Sanofi License Agreement and Sanofi Supply Agreement As disclosed in Note 1 under Basis of Presentation, the Company entered into a license and collaboration agreement with Sanofi which was terminated effective April 4, 2016. On April 5, 2016 the Company assumed responsibility for the worldwide development and commercialization of Afrezza from Sanofi. Under terms of the transition agreement, Sanofi continued to fulfill orders for Afrezza in the United States until the Company began distributing MannKind-branded product to major wholesalers during the week of July 25, 2016. As previously disclosed, worldwide profits and losses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of Afrezza, are shared 65% by Sanofi and 35% by the Company until Sanofi ceases to distribute Afrezza. The Company analyzed the agreements entered into with Sanofi to determine whether the consideration, or a portion thereof, could be recognized as revenue. Revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collection is reasonably assured. In addition, revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. When deliverables are separable, consideration received is allocated to the separate units of accounting based on the relative selling price of each deliverable and the appropriate revenue recognition principles are applied to each unit. The assessment of multiple element arrangements requires judgment in order to determine the appropriate units of accounting and the points in time that, or periods over which, revenue should be recognized. Under the terms of the Sanofi License Agreement, Sanofi Supply Agreement and the Sanofi Loan Facility the Company determined that the arrangement contained significant deliverables including (i) licenses to develop and commercialize Afrezza and to use the Company’s trademarks, (ii) development activities, and (iii) manufacture and supply services for Afrezza. Due to the proprietary nature of the manufacturing services being provided by the Company, the Company determined that all of the significant deliverables should be combined into a single unit of accounting. The Company believes that the manufacturing services are proprietary due to the fact that since the late 1990’s, the Company has developed proprietary knowledge and patented equipment and tools that are used in the manufacturing process of Afrezza. Due to the complexities of particle formulation and the specialized knowledge and equipment needed to handle the Afrezza powder, neither Sanofi nor any third-party contract manufacturing organization currently possesses the capability of manufacturing Afrezza. In order for revenue to be recognized, the seller’s price to the buyer must be fixed and determinable. Given that as of June 30, 2016 the Company did not have the ability to estimate the amount of costs that would potentially be incurred under the profit and loss share provision related to the Sanofi License Agreement and the Sanofi Supply Agreement, the Company believes this requirement for revenue recognition has not been met. As such, the Company did not recognize any revenue pursuant to the Sanofi License Agreement or the Sanofi Supply Agreement for the three months ended June 30, 2016. The Company has recorded the $150.0 million up-front payment and $50.0 million from milestone payments as deferred payments from collaboration. In addition, as of June 30, 2016 the Company has recorded $26.9 million in Afrezza product shipments to Sanofi recorded as deferred sales from collaboration and recorded $22.7 million as deferred costs from collaboration. Deferred costs represent the costs directly related to the collaboration, not to exceed the amount of deferred sales, for which recognition of revenue has been deferred. During the quarter ended June 30, 2016, the Company’s portion of the profit sharing was $0.3 million, which resulted in the reclassification from current deferred payments from collaboration to Sanofi loan facility and profit/loss share obligation to reflect amounts owed to Sanofi. Sanofi Loan Facility On September 23, 2014, the Company entered into the Sanofi Loan Facility, consisting of a senior secured revolving promissory note and a guaranty and security agreement (the “Security Agreement”) with an affiliate of Sanofi which provides the Company with a secured loan facility of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. In the event of certain future defaults under the Sanofi Loan facility agreement for which the Company is not able to obtain waivers, the lender under the Sanofi Loan Facility may accelerate all of the Company’s repayment obligations, and take control of the Company’s pledged assets, potentially requiring the Company to renegotiate the terms of its indebtedness on terms less favorable to the Company, or to immediately cease operations. The obligations of the Company under the Sanofi Loan Facility are guaranteed by the Company’s wholly-owned subsidiary, MannKind LLC, and are secured by a first priority security interest in certain insulin inventory located in the United States and any contractual rights and obligations pursuant to which the Company purchases or has purchased such insulin, and a second priority security interest in the Company’s assets that secure the Company’s obligations under the Facility Agreement, as amended. In addition, the Company granted to Sanofi, as additional security for the obligations under the Sanofi Loan Facility, a first priority mortgage on the Company’s facility in Valencia, California, which has a carrying value of $17.6 million as of June 30, 2016. Advances under the Sanofi Loan Facility bear interest at a rate of 8.5% per annum and are payable in-kind and compounded quarterly and added to the outstanding principal balance under the Sanofi Loan Facility. The Company is required to make mandatory prepayments on the outstanding loans under the Sanofi Loan Facility from its share of any profits (as defined in the Sanofi License Agreement) under the Sanofi License Agreement within 30 days of receipt of its share of any such profits. No advances may be made under the Sanofi Loan Agreement if Deerfield has commenced enforcement proceedings in connection with an event of default under the Facility Agreement. The outstanding principal of all loans under the Sanofi Loan Facility, if not prepaid, will become due and payable on September 23, 2024 unless accelerated pursuant to the terms of the Sanofi Loan Facility. Additionally, if the Company sells its Valencia facility, the Company is required to prepay the loans under the Sanofi Loan Facility from the net cash proceeds of the sale within five business days of receipt. The maturity date of September 23, 2024 for repayment of the outstanding principal amount of the loans under the Sanofi Loan Facility is not affected by the termination of the Sanofi License Agreement. The Company’s total cumulative portion of the loss sharing, including interest, was $70.0 million, of which $70.3 million was borrowed under the Sanofi Loan Facility as of June 30, 2016. For the three months ended June 30, 2016, the Company’s portion of the profit sharing was $0.3 million under the Sanofi License Agreement, which is required to be applied as a prepayment against the balance owed under the Sanofi Loan Facility. The total amount owed to Sanofi is $70.0 million, which includes $4.3 million in paid-in-kind interest capitalized as principal. The Sanofi Loan Facility includes customary representations, warranties and covenants by the Company, including restrictions on its ability to incur additional indebtedness, grant certain liens and make certain changes to its organizational documents. Events of default under the Sanofi Loan Facility include: the Company’s failure to timely make payments due under the Sanofi Loan Facility; inaccuracies in the Company’s representations and warranties to the noteholder; the Company’s failure to comply with any of its covenants under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility, subject to a cure period with respect to most covenants; the Company’s insolvency or the occurrence of certain bankruptcy-related events; and the failure of any material provision under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility to remain in full force and effect. If one or more events of default occurs and is continuing, Sanofi may terminate its obligation to make advances under the Sanofi Loan Facility, and, if certain specified events of default (including the Company’s failure to timely make payments due under the Sanofi Loan Facility; the Company’s failure to comply with the negative covenants under the Sanofi Loan Facility limiting the Company’s ability to incur additional indebtedness or grant certain liens; the Company’s insolvency or the occurrence of certain bankruptcy-related events; or the failure of any material provision under any of the Sanofi Loan Facility or certain other related security agreements and documents entered into in connection with the Sanofi Loan Facility to remain in full force and effect) occur and are continuing, the noteholder may accelerate all of the Company’s repayment obligations under the Sanofi Loan Facility and otherwise exercise any of its remedies as a secured creditor. There can be no assurance that the noteholder would not choose to exercise these rights in the event such events were to occur.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments	8. Fair Value of Financial Instruments The Company applies various valuation approaches in determining the fair value of its financial assets and liabilities within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level 1— Quoted prices for identical instruments in active markets. Level 2— Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3— Significant inputs to the valuation model are unobservable. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. Cash and cash equivalents Cash equivalents consist of highly liquid investments with original or remaining maturities of 90 days or less at the time of purchase, that are readily convertible into cash. As of June 30, 2016 and December 31, 2015, the Company held $63.7 million and $59.1 million, respectively, of cash and cash equivalents, consisting primarily of money market funds of $56.8 million and $55.8 million, respectively, and the remaining in non-interest bearing checking accounts. The fair value of these money market funds was determined by using quoted prices for identical investments in an active market (Level 1 in the fair value hierarchy). Related-Party Arrangement The fair value of the note payable to our principal stockholder cannot be reasonably estimated as the Company would not be able to obtain a similar credit arrangement in the current economic environment. Financial liabilities The following tables set forth the fair value of our financial instruments (in millions): As of June 30, 2016 Level 1 Level 2 Level 3 Total Financial liabilities: Senior convertible notes $ — $ — $ 21.8 $ 21.8 Facility financing obligation — — 79.9 79.9 Milestone rights — — 15.6 15.6 Sanofi Loan Facility — — 62.0 62.0 Warrant liability — — 18.1 18.1 Total financial liabilities $ — $ — $ 197.4 $ 197.4 As of December 31, 2015 Level 1 Level 2 Level 3 Total Financial liabilities: Senior convertible notes $ — $ — $ 21.3 $ 21.3 Facility financing obligation — — 78.4 78.4 Milestone rights — — 14.4 14.4 Sanofi Loan Facility — — 36.5 36.8 Total financial liabilities $ — $ — $ 150.6 $ 150.6 Senior convertible notes The estimated fair value of the 2018 notes was calculated based on model-derived valuations whose inputs were observable, such as the Company’s stock price and yields on U.S. Treasury notes and actively traded bonds, and non-observable, such as the Company’s longer-term historical volatility, and estimated yields implied from any available market trades of the Company’s issued debt instruments. As there is no current active and observable market for the 2018 notes, the Company determined the estimated fair value using a convertible bond valuation model within a lattice framework. The convertible bond valuation model combined expected cash flows based on terms of the notes with market-based assumptions regarding risk-free rate, risk-adjusted yields (20%), stock price volatility (87.5%) and recent price quotes and trading information regarding Company issued debt instruments and shares of common stock into which the notes are convertible (Level 3 in the fair value hierarchy). Facility Agreement As discussed in Note 13 — Facility Agreement, in connection with the Facility Agreement, the Company issued 2019 notes and subsequently issued Tranche B notes (the “Facility Financing Obligation”). As there is no current observable market for the 2019 notes or Tranche B notes, the Company determined the estimated fair value using a bond valuation model based on a discounted cash flow methodology. The bond valuation model combined expected cash flows associated with principal repayment and interest based on the contractual terms of the debt agreement discounted to present value using a selected market discount rate. On June 30, 2016 the market discount rate was recalculated at 11.0% for the 2019 notes and for the Tranche B notes, which reflected decline in the market price of benchmark U.S. Treasury securities as compared to prior measurement date (Level 3 in the fair value hierarchy). In addition to the 2019 notes and Tranche B notes, the Company also issued certain rights to receive payments of up to $90.0 million upon occurrence of specified strategic and sales milestones (the “Milestone Rights”). These rights are not reflected in the facility financing obligation. The estimated fair value of the Milestone Rights was calculated using the income approach in which the cash flows associated with the specified contractual payments were adjusted for both the expected timing and the probability of achieving the milestones discounted to present value using a selected market discount rate (Level 3 in the fair value hierarchy). The expected timing and probability of achieving the milestones, starting in 2014, was developed with consideration given to both internal data, such as progress made to date and assessment of criteria required for achievement, and external data, such as market research studies. The discount rate (14.0%) was selected based on an estimation of required rate of returns for similar investment opportunities using available market data. As of June 30, 2016, the carrying value of the Milestone Rights is $8.9 million, classified as a long-term liability in other liabilities and the fair value is estimated at $15.6 million. Sanofi Loan Facility As discussed in Note 7 — Collaboration arrangement, the Sanofi Loan Facility consists of a senior secured revolving promissory note and a guaranty and security agreement with an affiliate of Sanofi which provides the Company with a secured loan facility of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. The estimated fair value was determined using a discounted cash flow model in which time outstanding and discount rate were primary variables. This method considered the key elements of the contractual terms of the Sanofi Loan Facility, market-based estimated cost of capital, and time value of money, namely the amount of time to settlement and the estimated discount rate (11%) appropriate for the liability (Level 3 in the fair value hierarchy). As of June 30, 2016 the carrying value of the Sanofi Loan Facility is $70.3 million and the fair value is estimated at $62.0 million. Warrant liability Warrant liabilities are measured at fair value using a Monte Carlo pricing valuation model. The assumptions used in the valuation model for the common stock warrant liabilities were: (a) a risk-free interest rate based on the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the remaining contractual term of the warrants; (b) an assumed dividend yield of zero percent based on the Company’s expectation that it will pay no dividends in the foreseeable future; (c) an expected term based on the remaining contractual term of the warrants; and (d) an expected volatility based upon the Company’s historical volatility over the remaining contractual term of the warrants and probability of a dilutive financing that may trigger a price protection clause. The significant unobservable input used in measuring the fair value of the common stock warrant liabilities is the expected volatility. Significant increases in volatility would result in a higher fair value measurement. (Level 3 in the fair value hierarchy) See note 14 – Warrants for further discussion.

Accounting for stock-based comp

Accounting for stock-based compensation	6 Months Ended
	Jun. 30, 2016
Accounting for stock-based compensation	9. Accounting for stock-based compensation Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Stock-based compensation $ 1,355 $ 1,775 $ 2,628 $ 3,778 During the three months ended March 31, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 2,364,200 restricted stock units and 4,920,267 stock options issued was $2.2 million and $3.0 million, respectively, with a grant date fair value per share of $0.92 and $0.61, respectively. During the three months ended June 30, 2016, the Company issued stock awards to employees with a four-year vesting schedule. The grant date fair value of the 1,088,050 restricted stock units and 1,140,200 stock options issued was $1.0 million and $0.7 million respectively, with a grant date fair value per share of $0.91 and $0.62, respectively. As of June 30, 2016, there was $5.6 million and $7.1 million of unrecognized compensation cost related to options and restricted stock units, respectively, which are expected to be recognized over the remaining weighted average vesting period of 3.0 years. During the three months ended June 30, 2016, the Company granted certain executives stock options to purchase an aggregate of 4,015,000 shares of common stock at a weighted average exercise price of $0.91 per share. These awards contain performance conditions based on achieving certain product sales targets. The grant date fair value of these awards is $3.0 million with a grant date fair value of $0.74 per share, as determined using a Black-Scholes option pricing model. As of June 30, 2016, no compensation cost has been recognized related to these awards as they are not considered probable of achievement within the next twelve months.

Net loss per common share

Net loss per common share	6 Months Ended
	Jun. 30, 2016
Net loss per common share	10. Net loss per common share Basic net loss per share excludes dilution for potentially dilutive securities and is computed by dividing net loss by the weighted average number of common shares outstanding during the period excluding the 9,000,000 shares loaned to Bank of America under a share lending arrangement for periods prior to the third quarter of 2015. In the third quarter of 2015, the 9,000,000 shares loaned to Bank of America were returned and therefore do not impact the three or six months ended June 30, 2016. Prior to the return of those shares, the borrowed shares were not considered outstanding for the purpose of computing and reporting basic or diluted loss per share because the share borrower had to return all borrowed shares to the Company (or, in certain circumstances, the cash value thereof). Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the computation of diluted net loss per share for all of the periods presented in the accompanying condensed consolidated statements of operations because the reported net loss in each of these periods results in their inclusion being antidilutive. Antidilutive securities, which consist of stock options, restricted stock units, warrants, and shares that could be issued upon conversion of the senior convertible notes, are not included in the diluted net loss per share calculation and excluded the 9,000,000 shares of the Company’s common stock loaned under the share lending arrangement. On February 8, 2016, all unexercised warrants related to the February 2012 public offering expired. In November 2015, the Company issued warrants to purchase 159,304 shares of the Company’s common stock to the placement agent in exchange for services related to the Company’s offering to select investment funds in Israel. In May 2016, the Company issued Series A warrants (“A Warrants”) to purchase 36,407,765 shares of the Company’s common stock and Series B warrants (“B Warrants) to purchase 12,135,921 shares of the Company’s common stock to certain institutional investors. These warrants remain outstanding at June 30, 2016 (see Note 14 – Warrants). Potentially dilutive securities outstanding are summarized as follows (in shares): June 30, 2016 2015 Exercise of common stock options 28,219,831 19,985,768 Vesting of restricted stock units 4,553,757 2,198,173 Exercise of common stock warrants 48,702,990 4,090,013 Conversion of senior convertible notes into common stock 4,072,809 14,708,590 85,549,387 40,982,544

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and contingencies	11. Commitments and contingencies Guarantees and Indemnifications — Litigation — Following the public announcement of Sanofi’s election to terminate the Sanofi License Agreement and the subsequent decline in the Company’s stock price, several complaints were filed in the U.S. District Court for the Central District of California (the “District Court”) against the Company and certain of its officers and directors on behalf of certain purchasers of its common stock. These complaints have now been consolidated into a single action. The amended complaint includes claims asserted under Sections 10(b) and 20(a) of the Exchange Act and has been pled as putative shareholder class actions. In general, the complaints allege that the Company and certain of its officers and directors violated federal securities laws by making materially false and misleading statements regarding the prospects for Afrezza, thereby artificially inflating the price of its common stock. The plaintiffs are seeking monetary damages and other relief. The Company will vigorously defend against the claims advanced. Following the public announcement of Sanofi’s election to terminate the Sanofi License Agreement and the subsequent decline in the Company’s stock price, two motions were submitted to the district court at Tel Aviv (Economic Department) for the certification of a class action against the Company and certain of its officers and directors. In general, the complaints allege that the Company and certain of its officers and directors violated Israeli and U.S. securities laws by making materially false and misleading statements regarding the prospects for Afrezza, thereby artificially inflating the price of its common stock. The plaintiffs are seeking monetary damages. The Company will vigorously defend against the claims advanced. Subsequent to the filing of the federal securities class action against the Company, a shareholder derivative complaint was filed in the Superior Court for the State of California, County of Los Angeles against certain of the Company’s directors and officers. The complaint alleges breaches of fiduciary duties by the defendants and other violations of law. Among other allegations, the complaint alleges that the defendants caused the Company to make false and misleading statements or omissions of material fact regarding the Company’s business and the prospects for sales of Afrezza, thereby artificially inflating the price of the Company’s common stock. The plaintiff is seeking unspecified monetary damages and other relief, including reforms to the Company’s corporate governance and internal procedures. The defendants will vigorously defend against the claims advanced. Contingencies — Commitments — Unless earlier terminated, the term of the Insulin Supply Agreement expires on December 31, 2019 and can be renewed for additional, successive two year terms upon 12 months’ written notice given prior to the end of the initial term or any additional two year term. The Company and Amphastar each have normal and customary termination rights, including termination for material breach that is not cured within a specific time frame or in the event of liquidation, bankruptcy or insolvency of the other party. In addition, the Company may terminate the Insulin Supply Agreement upon two years’ prior written notice to Amphastar without cause or upon 30 days’ prior written notice to Amphastar if a controlling regulatory authority withdraws approval for Afrezza, provided, however, in the event of a termination pursuant to either of the latter two scenarios, the provisions of the Insulin Supply Agreement require the Company to pay the full amount of all unpaid purchase commitments due over the initial term within 60 calendar days of the effective date of such termination. Under the terms of the Sanofi Supply Agreement, in the event that Sanofi terminates the Sanofi License Agreement for various reasons (including the reasons cited in its notice of termination to the Company), then upon written notice from the Company within 30 days following the termination date, Sanofi is obligated to purchase up to $50 million of the Company’s insulin inventory as a percentage of each lot received or receivable by the Company (the “Insulin Put Option”). On April 14, 2016, the Company provided Sanofi with written notice that it was exercising the Insulin Put Option. To date, $9.2 million was received for the sale of insulin inventory in connection with the Insulin Put Option, which was recorded as deferred payments from collaboration. As future insulin purchases are made under the purchase commitment and subject to the terms of the Insulin Put Option, additional amounts will be invoiced to Sanofi.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2016
Income taxes	12. Income taxes Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and concluded, in accordance with the applicable accounting standards, that net deferred tax assets should be fully reserved. ASC 740-10-25 Income Taxes Recognition clarifies the accounting and disclosure for uncertainty in tax positions, as defined. This guidance seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to this guidance. Tax years since 1993 remain subject to examination by the major tax jurisdictions in which the Company is subject to tax.

Facility Agreement

Facility Agreement	6 Months Ended
	Jun. 30, 2016
Facility Agreement	13. Facility Agreement As of June 30, 2016, there were $60.0 million principal amount of 2019 notes and $20.0 million principal amount of Tranche B notes outstanding. The 2019 notes accrue interest at an annual rate of 9.75% and the Tranche B notes accrue interest at an annual rate of 8.75%. The Facility Agreement principal repayment schedule is comprised of annual payments beginning on July 1, 2016 and ending December 9, 2019. The repayment dates correspond to the dates on which the 2019 notes or Tranche B notes, as applicable, were issued. In conjunction with the Facility Agreement, the Company entered into a Milestone Rights Agreement with Deerfield which requires the Company to make contingent payments to Deerfield, totaling up to $90.0 million, upon the Company achieving specified commercialization milestones. The Milestone Rights were initially recorded as a short-term liability equal to $3.2 million included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet and a long-term liability equal to $13.1 million included in other liabilities. As of June 30, 2016, the remaining liability balance of $8.9 million is classified as long-term liability in other liabilities. Accretion of debt issuance cost and debt discount in connection with the Facility financing agreement during the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Accretion expense- debt issuance cost $ 9 $ 9 $ 17 $ 17 Accretion expense- debt discount $ 433 $ 380 $ 852 $ 745 The Facility Agreement contains a financial covenant that requires the Company’s cash and cash equivalents, which include available borrowings under the Loan Arrangement, on the last day of each fiscal quarter to not be less than $25.0 million. The Company will need to raise additional capital to support its current operating plans. Due to the uncertainties related to maintaining sufficient resources to comply with the aforementioned covenant, the 2019 notes have been classified as current liabilities in the accompanying balance sheet as of June 30, 2016. In the event of non-compliance, Deerfield may declare all or any portion of the 2019 notes and/or Tranche B notes to be immediately due and payable.

Warrants

Warrants	6 Months Ended
	Jun. 30, 2016
Warrants	14. Warrants In May 2016, the Company sold in a registered offering an aggregate of 48,543,687 shares of common stock together with A Warrants exercisable for up to an aggregate of 36,407,765 shares of common stock and B Warrants exercisable for up to an aggregate of 12,135,921 shares of common stock with a total fair value of $44.7 million. Each of the warrants has an exercise price of $1.50 per share. The A Warrants became exercisable upon issuance and will expire two years thereafter. The B Warrants will become exercisable beginning in May 2017 and will expire 30 months after the date of issuance. The shares of common stock and the warrants are immediately separable and issued separately. There have been no warrants exercised as of June 30, 2016. The Company evaluated the A Warrants and B Warrants to determine the appropriate classification. The Company determined that the A Warrants require liability classification primarily due to a price-protection clause if certain dilutive financing occurs. The fair value of the A Warrants was recorded as warrant liability in the condensed consolidated balance sheet at issuance and is adjusted to fair value at each reporting period until exercise or expiration. The Company determined that the B Warrants met the criteria for equity classification and has accounted for such warrants in additional paid in capital. As of May 12, 2016 and June 30, 2016, the fair value of the A Warrants liability was $12.8 million and $18.1 million, respectively, and was estimated using a Monte Carlo valuation pricing model. The Company recognized a loss of $5.3 million to reflect the fair value adjustment of the A Warrant liability from the date of issuance, May 12, 2016 to June 30, 2016. As of May 12, 2016 the fair value of the B Warrants at issuance was $5.0 million.

Description of business and b21

Description of business and basis of presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Loss on purchase commitments	Loss on purchase commitments —
Business	Business —
Basis of Presentation	Basis of Presentation In May 2016, pursuant to a previously filed Form S-3 Registration Statement, which was declared effective by the SEC on April 27, 2016, the Company sold in an underwritten public offering 48,543,692 shares of its common stock, together with warrants to purchase up to 48,543,692 shares of the Company’s common stock. Net proceeds from this offering were approximately $47.4 million after deducting discounts and commissions to the underwriters and paying for offering expenses, excluding any future proceeds from the exercise of the warrants. (see Note 14 — Warrants). At June 30, 2016, the Company’s capital resources consisted of cash and cash equivalents of $63.7 million. The Company expects to continue to incur significant expenditures to support commercial manufacturing and sales and marketing of Afrezza and the development of other product candidates. The facility agreement (the “Facility Agreement”) with Deerfield Private Design Fund II, L.P. (“Deerfield Private Design Fund”) and Deerfield Private Design International II, L.P. (collectively, “Deerfield”) and the First Amendment to Facility Agreement and Registration Rights Agreement (the “First Amendment”) that resulted in additional sales of an additional tranche of notes (see Note 13 — Facility Agreement) requires the Company to maintain at least $25.0 million in cash and cash equivalents or available borrowings under the loan arrangement, dated as of October 2, 2007, between The Company and The Mann Group LLC (as amended, restated, or otherwise modified as of the date hereof, “The Mann Group Loan Arrangement”), as of the last day of each fiscal quarter. The Company will need to continue to incur expenses for the commercialization of Afrezza and will need to raise additional capital to finance such activities. The Company cannot be certain that it will be able to raise additional capital on favorable terms, or at all, which raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. On August 11, 2014, the Company executed a license and collaboration agreement (the “Sanofi License Agreement”) with Sanofi-Aventis Deutschland GmbH (which subsequently assigned its rights and obligations under the agreement to Sanofi), pursuant to which Sanofi was responsible for global commercial, regulatory and development activities for Afrezza. The Sanofi License Agreement became effective on September 23, 2014. The Company manufactured Afrezza at its manufacturing facility in Danbury, Connecticut to supply Sanofi’s demand for the product pursuant to a supply agreement dated August 11, 2014 (the “Sanofi Supply Agreement”). The Sanofi License Agreement and Sanofi Supply Agreement terminated, effective April 4, 2016, following which the Company assumed responsibility for the worldwide development and commercialization of Afrezza from Sanofi. Under the terms of the transition agreement, Sanofi continued to fulfill orders for Afrezza in the United States until the Company began distributing MannKind-branded product to major wholesalers during the week of July 25, 2016. The Company expects to commence recognition, likely within the third quarter of 2016, the deferred sales from collaboration, deferred costs from collaboration, and deferred payments from collaboration deferred as of June 30, 2016, as a result of the termination of the transition agreement. Under the Sanofi License Agreement, worldwide profits and losses, which are determined based on the difference between the net sales of Afrezza and the costs and expenses incurred by the Company and Sanofi that are specifically attributable or related to the development, regulatory filings, manufacturing, or commercialization of Afrezza, are shared 65% by Sanofi and 35% by the Company until Sanofi ceases to distribute Afrezza. As a result of this loss share provision, and because the Company does not currently have the ability to estimate the amount of costs that would potentially be incurred related to the Sanofi License Agreement, the amount of up-front cash payment or milestone payments that could be recognized as revenue is not fixed or determinable. In connection with the Sanofi License Agreement, an affiliate of Sanofi provided the Company with a secured loan facility (the “Sanofi Loan Facility”) of up to $175.0 million to fund the Company’s share of net losses under the Sanofi License Agreement. Additional funding sources that are, or in certain circumstances may be, available to the Company, include approximately $30.1 million principal amount of available borrowings under The Mann Group Loan Arrangement. A portion of these available borrowings may be used to capitalize accrued interest into principal, upon mutual agreement of the parties, as it becomes due and payable under The Mann Group Loan Arrangement (see Note 5 — Related-party arrangements). The Company cannot provide assurances that its plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company is seeking and will need to raise additional capital, whether through a sale of equity or debt securities, a strategic business collaboration with a pharmaceutical company, the establishment of other funding facilities, licensing arrangements, asset sales or other means, in order to continue the development and commercialization of Afrezza and other product candidates and to support its other ongoing activities. However, the Company cannot provide assurances that such additional capital will be available on acceptable terms or at all. Certain prior year balances in the Statement of Cash Flows have been reclassified to conform to current year presentation. Specifically Interest incurred through borrowing under Sanofi Loan Facility and interest on note payable to principal stockholder have been reclassified from Accrued and other current liabilities and Other liabilities, respectively.
Fair Value of Financial Instruments	Fair Value of Financial Instruments —
Deferred product costs from collaboration	Deferred costs from collaboration
Warrant	Warrants
Recently Issued Accounting Standards	Recently Issued Accounting Standards — In May 2014, the FASB issued ASU No. 2014-09 related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard requires a company to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration it expects to be entitled to receive in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. The Company is assessing the potential impact of the new standards on its consolidated financial statements and has not yet selected a method of adoption. In August 2014, the FASB issued ASU No. 2014-15, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” The ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; early adoption is permitted. The Company is evaluating the impact the adoption of ASU No. 2014-15 will have on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Topic 330, Inventory, currently requires an entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The amendments do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. The amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of ASU No. 2015-11 will have on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The update is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact the adoption of ASU No. 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for us on January 1, 2019. The Company is evaluating the impact the adoption of ASU No. 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new standard involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. For public business entities, the amendments in this standard are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is evaluating the impact the adoption of ASU No. 2016-09 will have on its consolidated financial statements.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Components of Inventories	Inventories consist of the following (in thousands): June 30, 2016 December 31, 2015 Raw materials $ 1,491 $ — Work-in-process 1,155 — Finished goods 220 — Total Inventory $ 2,866 $ —

Property and equipment (Tables)

Property and equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property and Equipment, Net and Depreciation and Amortization Expense Related to Property and Equipment	Property and equipment — net consist of the following (dollar amounts in thousands): Estimated Useful Life (Years) June 30, 2016 December 31, 2015 Land — $ 3,435 $ 3,435 Buildings 39-40 21,590 21,590 Building improvements 5-40 60,584 60,584 Machinery and equipment 3-15 67,761 68,434 Furniture, fixtures and office equipment 5-10 4,114 4,114 Computer equipment and software 3 9,519 9,519 Construction in progress 437 586 167,440 168,262 Less accumulated depreciation and amortization (120,018 ) (119,513 ) Property and equipment — net $ 47,422 $ 48,749 Depreciation and amortization expense related to property and equipment for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Depreciation and amortization expense $ 589 $ 2,740 $ 1,179 $ 5,117

Accrued expenses and other cu24

Accrued expenses and other current liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Salary and related expenses $ 6,536 $ 5,662 Accrued interest 602 615 Construction in progress — 238 Other 3,114 1,414 Accrued expenses and other current liabilities $ 10,252 $ 7,929

Related-party arrangements (Tab

Related-party arrangements (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule of Lease Payments to the Mann Foundation	Lease payments to the Mann Foundation for the three and six months ended June 30, 2016 and 2015 were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Lease payments $ 67 $ 65 $ 133 $ 65

Senior convertible notes (Table

Senior convertible notes (Tables)	6 Months Ended
	Jun. 30, 2016
Summary of Senior Convertible Notes	Senior convertible notes consist of the following (in thousands): June 30, 2016 December 31, 2015 Senior Convertible notes Principal amount $ 27,690 $ 27,690 Unamortized premium 545 660 Unaccreted debt issuance costs (612 ) (737 ) Net carrying amount $ 27,623 $ 27,613

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments	The following tables set forth the fair value of our financial instruments (in millions): As of June 30, 2016 Level 1 Level 2 Level 3 Total Financial liabilities: Senior convertible notes $ — $ — $ 21.8 $ 21.8 Facility financing obligation — — 79.9 79.9 Milestone rights — — 15.6 15.6 Sanofi Loan Facility — — 62.0 62.0 Warrant liability — — 18.1 18.1 Total financial liabilities $ — $ — $ 197.4 $ 197.4 As of December 31, 2015 Level 1 Level 2 Level 3 Total Financial liabilities: Senior convertible notes $ — $ — $ 21.3 $ 21.3 Facility financing obligation — — 78.4 78.4 Milestone rights — — 14.4 14.4 Sanofi Loan Facility — — 36.5 36.8 Total financial liabilities $ — $ — $ 150.6 $ 150.6

Accounting for stock-based co28

Accounting for stock-based compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation Expense	Total stock-based compensation expense recognized in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 was as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Stock-based compensation $ 1,355 $ 1,775 $ 2,628 $ 3,778

Net loss per common share (Tabl

Net loss per common share (Tables)	6 Months Ended
	Jun. 30, 2016
Potential Dilutive Securities Outstanding	Potentially dilutive securities outstanding are summarized as follows (in shares): June 30, 2016 2015 Exercise of common stock options 28,219,831 19,985,768 Vesting of restricted stock units 4,553,757 2,198,173 Exercise of common stock warrants 48,702,990 4,090,013 Conversion of senior convertible notes into common stock 4,072,809 14,708,590 85,549,387 40,982,544

Facility Agreement (Tables)

Facility Agreement (Tables)	6 Months Ended
	Jun. 30, 2016
Accretion of Debt Issuance Cost and Debt Discount	Accretion of debt issuance cost and debt discount in connection with the Facility financing agreement during the three and six months ended June 30, 2016 and 2015 are as follows (in thousands): Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Accretion expense- debt issuance cost $ 9 $ 9 $ 17 $ 17 Accretion expense- debt discount $ 433 $ 380 $ 852 $ 745

Description of Business and B31

Description of Business and Basis of Presentation - Additional Information (Detail) - USD ($)	Apr. 05, 2016	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 23, 2014
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Accumulated deficit			$ (2,918,060,000)		$ (2,863,229,000)
Number of shares sold in underwritten public offering		48,543,692
Proceeds from offering of common stocks and warrants, net		$ 47,400,000	734,000	$ 12,820,000
Cash and cash equivalents			63,733,000	$ 107,187,000	$ 59,074,000	$ 120,841,000
Amount available for future borrowings			$ 30,100,000
License and Collaboration Agreement with Sanofi
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Profits and losses sharing percentage	35.00%		35.00%
Maximum secured loan facility							$ 175,000,000
License and Collaboration Agreement with Sanofi | Sanofi-Aventis Deutschland GmbH
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Profits and losses sharing percentage	65.00%		65.00%
Maximum secured loan facility			$ 175,000,000
Maximum
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Number of warrants available for purchase common shares		48,543,692
Senior convertible notes due December 31, 2019 | Deerfield | Minimum | Less portion of commitment asset
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Available amount of credit facility under covenant restrictions			$ 25,000,000

Components of Inventories (Deta

Components of Inventories (Detail) $ in Thousands	Jun. 30, 2016USD ($)
Inventory [Line Items]
Raw materials	$ 1,491
Work-in-process	1,155
Finished goods	220
Total Inventory	$ 2,866

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 167,440	$ 168,262
Less accumulated depreciation and amortization	(120,018)	(119,513)
Property and equipment - net	47,422	48,749
Land
Property, Plant and Equipment [Line Items]
Property and equipment - gross	3,435	3,435
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 21,590	21,590
Buildings | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	39 years
Buildings | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Building Improvements
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 60,584	60,584
Building Improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Building Improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	40 years
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 67,761	68,434
Machinery and Equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Machinery and Equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	15 years
Furniture, fixtures and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 4,114	4,114
Furniture, fixtures and office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture, fixtures and office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	10 years
Computer Equipment and Software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Property and equipment - gross	$ 9,519	9,519
Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment - gross	$ 437	$ 586

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Property, Plant and Equipment [Line Items]
Impairment charges allocated to individual asset groups	$ 140.4

Depreciation and Amortization E

Depreciation and Amortization Expense Related to Property and Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 589	$ 2,740	$ 1,179	$ 5,117

Accrued Expenses and Other Cu36

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities [Line Items]
Salary and related expenses	$ 6,536	$ 5,662
Accrued interest	602	615
Construction in progress		238
Other	3,114	1,414
Accrued expenses and other current liabilities	$ 10,252	$ 7,929

Related-Party Arrangements - Ad

Related-Party Arrangements - Additional Information (Detail)	1 Months Ended		6 Months Ended
	Oct. 31, 2013USD ($)	Oct. 31, 2007USD ($)	Jun. 30, 2016USD ($)	May 31, 2015ft²
Related Party Transaction [Line Items]
Amount available for future borrowings			$ 30,100,000
Additional borrowings			$ 0
Principal stockholder
Related Party Transaction [Line Items]
Loan agreement with related party	$ 370,000,000	$ 350,000,000
Principal stockholder | Amended Agreement
Related Party Transaction [Line Items]
Maturity date			Jan. 5, 2020
Principal stockholder | Loan Arrangement
Related Party Transaction [Line Items]
Principal amount outstanding under credit facility			$ 49,500,000
Amount available for future borrowings			$ 30,100,000
Fixed borrowing rate			5.84%
Accrued interest payable			$ 7,800,000
Related party transaction prepayment period			90 days
Aggregate principal amount cancelled			$ 105,000,000
Principal stockholder | Loan Arrangement | Maximum
Related Party Transaction [Line Items]
Amount prepaid for cancellation of indebtedness			$ 200,000,000
Principal stockholder | Loan Arrangement | Minimum
Related Party Transaction [Line Items]
Number of months advances outstanding			12 months
Related Party Debt | Letter Agreement
Related Party Transaction [Line Items]
Description of variable rate interest			The interest rate will increase to the one-year LIBOR calculated on the date of the initial advance or in effect on the date of default, whichever is greater, plus 5% per annum.
Related Party Debt | Letter Agreement | LIBOR
Related Party Transaction [Line Items]
Interest rate (LIBOR)			5.00%
Mann Foundation | Sublease Agreement
Related Party Transaction [Line Items]
Area of office space leased | ft²				12,500
Lease expiration period			2017-04

Schedule of Lease Payments to t

Schedule of Lease Payments to the Mann Foundation (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Mann Foundation | Sublease Agreement
Lease and Rental Expense [Line Items]
Lease payments	$ 67	$ 65	$ 133	$ 65

Summary of Senior Convertible N

Summary of Senior Convertible Notes (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Principal amount	$ 27,690	$ 27,690
Unamortized premium	545	660
Unaccreted debt issuance costs	(612)	(737)
Net carrying amount	$ 27,623	$ 27,613

Senior Convertible Notes - Addi

Senior Convertible Notes - Additional Information (Detail)	Aug. 10, 2015d$ / sharesshares	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jul. 28, 2015USD ($)
5.75% Senior convertible notes due August 15, 2018
Debt Instrument [Line Items]
Accretion expense- debt issuance cost | $		$ 64,000,000	$ 0	$ 126,000,000	$ 0
Deerfield
Debt Instrument [Line Items]
Accretion expense- debt issuance cost | $		$ 9,000	$ 9,000	$ 17,000	$ 17,000
5.75% Senior convertible notes due August 15, 2018
Debt Instrument [Line Items]
Maturity date	Aug. 15, 2018
Senior notes, effective interest rate	5.75%
No of convertible shares	147.0859
Principal amount per share	$ 1,000
Conversion price of shares	$ 6.80
Percentage of repurchase price	100.00%
Debt Instrument, redemption description	On or after the date that is one year following the original issue date of the 2018 notes, the Company will have the right to redeem for cash all or part of the 2018 notes if the last reported sale price of its common stock exceeds 130% of the conversion price then in effect for 20 or more trading days during the 30 consecutive trading day period ending on the trading day immediately prior to the date of the redemption notice. The redemption price will equal the sum of 100% of the principal amount of the 2018 notes to be redeemed, plus accrued and unpaid interest.
Percentage of conversion price equaling stock price	130.00%
Number of trading days | d	20
Consecutive trading days	30 days
Debt Issuance Cost | $						$ 800,000
5.75% Senior convertible notes due August 15, 2018 | If certain fundamental changes occur
Debt Instrument [Line Items]
Conversion price of shares	$ 6.80
Number of shares to be converted | shares	747,100
5.75% Senior convertible notes due August 15, 2018 | Minimum | If certain fundamental changes occur
Debt Instrument [Line Items]
Share price on date of conversion	$ 4.82
Senior convertible notes due December 31, 2019 | Deerfield
Debt Instrument [Line Items]
Senior notes, effective interest rate		9.75%		9.75%
Senior convertible notes due December 31, 2019 | Deerfield | Less portion of commitment asset
Debt Instrument [Line Items]
Senior notes, effective interest rate		8.75%		8.75%

Collaborative Arrangement - Add

Collaborative Arrangement - Additional Information (Detail) - USD ($)	Apr. 05, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Sep. 23, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Carrying value		$ 27,623,000	$ 27,623,000		$ 27,613,000
Paid-in-kind interest			2,604,000	$ 265,000
Sanofi-Aventis Deutschland GmbH | Mortgage Loan
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Carrying value		17,600,000	$ 17,600,000
License and Collaboration Agreement with Sanofi
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage	35.00%		35.00%
Maximum secured loan facility						$ 175,000,000
Senior notes, effective interest rate						8.50%
License and Collaboration Agreement with Sanofi | Sanofi-Aventis Deutschland GmbH
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Profits and losses sharing percentage	65.00%		65.00%
Collaboration agreements expiration date			Apr. 4, 2016
Deferred revenue from collaboration product shipments		150,000,000	$ 150,000,000
Milestone receivable		50,000,000	50,000,000
Deferred cost		22,700,000	22,700,000
Company's total portion of profit sharing		300,000
Maximum secured loan facility		175,000,000	175,000,000
Carrying value		70,300,000	70,300,000
Secured loan facility, amount borrowed			70,300,000
Secured loan facility, amount earned		300,000
Secured loan facility, amount owed		70,000,000	70,000,000
Paid-in-kind interest			4,300,000
License and Collaboration Agreement with Sanofi | Sanofi-Aventis Deutschland GmbH | Operating loss Sharing
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Company's total portion of loss sharing			70,000,000
License and Collaboration Agreement with Sanofi | Sanofi-Aventis Deutschland GmbH | AFREZZA product sales
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue from collaboration product shipments		$ 26,900,000	$ 26,900,000

Fair Value of Financial Instr42

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	May 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 23, 2014	Jul. 01, 2013
Fair Value of Financial Instruments [Line Items]
Cash and cash equivalents	$ 63,733,000		$ 59,074,000	$ 107,187,000	$ 120,841,000
Cash equivalents, money market funds	56,800,000		55,800,000
Fair value of Milestone Rights		$ 44,700,000
Carrying value	27,623,000		$ 27,613,000
License and Collaboration Agreement with Sanofi
Fair Value of Financial Instruments [Line Items]
Maximum secured loan facility						$ 175,000,000
License and Collaboration Agreement with Sanofi | Sanofi-Aventis Deutschland GmbH
Fair Value of Financial Instruments [Line Items]
Maximum secured loan facility	175,000,000
Carrying value	70,300,000
Estimated fair value	62,000,000
Milestone Rights Liability | Deerfield | Maximum
Fair Value of Financial Instruments [Line Items]
Contingent liability for milestone payments							$ 90,000,000
Milestone Rights Liability | Senior convertible notes due December 31, 2019 | Deerfield
Fair Value of Financial Instruments [Line Items]
Long term liability	8,900,000						$ 13,100,000
Fair Value, Inputs, Level 3 | Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Fair value of Milestone Rights	$ 15,600,000
Fair Value, Inputs, Level 3 | Market Approach Valuation Technique | 5.75% Senior convertible notes due August 15, 2018 | Convertible Debt Securities
Fair Value of Financial Instruments [Line Items]
Fair value assumption, risk-free rate	20.00%
Fair value assumption, stock price volatility	87.50%
Fair Value, Inputs, Level 3 | Income Approach Valuation Technique | Sanofi-Aventis Deutschland GmbH
Fair Value of Financial Instruments [Line Items]
Market discount rate	11.00%
Fair Value, Inputs, Level 3 | Income Approach Valuation Technique | Senior convertible notes due December 31, 2019
Fair Value of Financial Instruments [Line Items]
Market discount rate	11.00%
Fair Value, Inputs, Level 3 | Income Approach Valuation Technique | Less portion of commitment asset | Senior convertible notes due December 31, 2019
Fair Value of Financial Instruments [Line Items]
Market discount rate	11.00%
Fair Value, Inputs, Level 3 | Income Approach Valuation Technique | Milestone Rights Liability
Fair Value of Financial Instruments [Line Items]
Market discount rate	14.00%

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Financial liabilities:
Financial liabilities fair value	$ 197.4	$ 150.6
Sanofi-Aventis Deutschland GmbH
Financial liabilities:
Financial liabilities fair value	62	36.8
Warrant Liability
Financial liabilities:
Financial liabilities fair value	18.1
Milestone Rights Liability
Financial liabilities:
Financial liabilities fair value	15.6	14.4
Senior Convertible Notes | Convertible Debt Securities
Financial liabilities:
Financial liabilities fair value	21.8	21.3
Facility financing obligation
Financial liabilities:
Financial liabilities fair value	79.9	78.4
Fair Value, Inputs, Level 3
Financial liabilities:
Financial liabilities fair value	197.4	150.6
Fair Value, Inputs, Level 3 | Sanofi-Aventis Deutschland GmbH
Financial liabilities:
Financial liabilities fair value	62	36.5
Fair Value, Inputs, Level 3 | Warrant Liability
Financial liabilities:
Financial liabilities fair value	18.1
Fair Value, Inputs, Level 3 | Milestone Rights Liability
Financial liabilities:
Financial liabilities fair value	15.6	14.4
Fair Value, Inputs, Level 3 | Senior Convertible Notes | Convertible Debt Securities
Financial liabilities:
Financial liabilities fair value	21.8	21.3
Fair Value, Inputs, Level 3 | Facility financing obligation
Financial liabilities:
Financial liabilities fair value	$ 79.9	$ 78.4

Stock-Based Compensation Expens

Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,355	$ 1,775	$ 2,628	$ 3,778

Accounting for Stock-Based Co45

Accounting for Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued	1,088,050	2,364,200
Number of stock options issued	1,140,200	4,920,267
Share-based Compensation Arrangement by Share-based Payment Award, Options,grant date fair value	$ 0.74
Weighted average vesting period for unrecognized compensation cost			3 years
Unrecognized compensation cost, share-based compensation arrangements	$ 0		$ 0
Common Stock | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options,grant date fair value	$ 0.91
Aggregate number of shares granted to awards, share-based compensation arrangements	4,015,000
Fair value of stock granted, share-based compensation arrangements	$ 3,000,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based payment award , vesting period	4 years	4 years
Fair value of the stock options granted , value	$ 700,000	$ 3,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options,grant date fair value	$ 0.62	$ 0.61
Unrecognized compensation cost related to options	$ 5,600,000		5,600,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of Restricted stock options granted , value	$ 1,000,000	$ 2,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options,grant date fair value	$ 0.91	$ 0.92
Unrecognized compensation cost related to non-option	$ 7,100,000		$ 7,100,000

Net Loss per Common Share - Add

Net Loss per Common Share - Additional Information (Detail) - shares	Jun. 30, 2016	May 31, 2016	Nov. 30, 2015	Sep. 30, 2015
Net Income Loss Per Common Share [Line Items]
Return of loaned common stock (in shares)				9,000,000
Shares loaned under the share lending arrangement	9,000,000
Warrants to purchase of common stock			159,304
A Warrants
Net Income Loss Per Common Share [Line Items]
Warrants to purchase of common stock		36,407,765
Warrants outstanding	36,407,765
B Warrants
Net Income Loss Per Common Share [Line Items]
Warrants to purchase of common stock		12,135,921
Warrants outstanding	12,135,921

Potentially Dilutive Securities

Potentially Dilutive Securities Outstanding (Detail) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	85,549,387	40,982,544
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	28,219,831	19,985,768
Convertible Debt Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	4,072,809	14,708,590
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	48,702,990	4,090,013
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities outstanding	4,553,757	2,198,173

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) € in Millions	Apr. 14, 2016USD ($)	Jul. 31, 2014EUR (€)	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2016EUR (€)	Dec. 31, 2015USD ($)	Jun. 30, 2016EUR (€)	Jul. 01, 2013USD ($)
Commitments and Contingencies [Line Items]
Purchase commitment amount under Insulin Supply Agreement | €		€ 120.1
Purchase obligation | €							€ 95.1
Purchase obligation, due in 2016 | €							28.8
Purchase obligation, due in 2017 | €							23.3
Purchase obligation, due in 2018 | €							23.3
Purchase obligation, due in 2019 | €							€ 23.3
Purchase commitment cancellation fees | $				$ 5,200,000
Other commitments with other suppliers | $			$ 1,900,000	1,900,000
Foreign currency transaction loss | $			2,400,000	2,023,000
Purchase obligation, purchased amount | €					€ 3.4
Loss on purchase commitments | $				$ 73,500,000		$ 66,200,000
Supply Agreement expiration period				Dec. 31, 2019	Dec. 31, 2019
Supply Agreement renewal period				2 years	2 years
Insulin Put
Commitments and Contingencies [Line Items]
Purchase obligation | $			$ 50,000,000	$ 50,000,000
Proceeds from the exercise of the Insulin Put Option | $	$ 9,200,000
Deerfield | Milestone Rights Liability | Maximum
Commitments and Contingencies [Line Items]
Contingent liability for milestone payments | $								$ 90,000,000

Facility Agreement - Additional

Facility Agreement - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jul. 01, 2013
Debt Instrument [Line Items]
Debt facility principal amount	$ 27,690,000	$ 27,690,000
Short term liability	$ 75,452,000	$ 74,582,000
Deerfield
Debt Instrument [Line Items]
Principal repayment schedule, start date	Jul. 1, 2016
Principal repayment schedule, end date	Dec. 9, 2019
Deerfield | Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Debt facility principal amount	$ 60,000,000
Senior notes, effective interest rate	9.75%
Deerfield | Less portion of commitment asset | Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Debt facility principal amount	$ 20,000,000
Senior notes, effective interest rate	8.75%
Deerfield | Less portion of commitment asset | Minimum | Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Available amount of credit facility under covenant restrictions	$ 25,000,000
Deerfield | Milestone Rights Liability | Senior convertible notes due December 31, 2019
Debt Instrument [Line Items]
Short term liability			$ 3,200,000
Long term liability	$ 8,900,000		13,100,000
Deerfield | Milestone Rights Liability | Maximum
Debt Instrument [Line Items]
Contingent liability for milestone payments			$ 90,000,000

Accretion of Debt Issuance Cost

Accretion of Debt Issuance Cost and Debt Discount in Connection with Facility Financing Agreement (Detail) - Deerfield - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Accretion expense- debt issuance cost	$ 9	$ 9	$ 17	$ 17
Accretion expense- debt discount	$ 433	$ 380	$ 852	$ 745

Warrants - Additional Informati

Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		6 Months Ended
	May 31, 2016	May 12, 2016	Jun. 30, 2016	Nov. 30, 2015
Class of Warrant or Right [Line Items]
Number of shares sold in underwritten public offering	48,543,692
Warrants to purchase of common stock				159,304
Fair value of warrants liability	$ 44,700
Exercise price of warrants	$ 1.50
Class of warrants exercised			0
Warrant fair value adjustment			$ 5,306
A Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase of common stock	36,407,765
Fair value of warrants liability		$ 12,800	$ 18,100
Class of warrants expiration period upon issuance	2 years
Warrant fair value adjustment		$ 5,306
Warrant liability issuance date		May 12, 2016
B Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase of common stock	12,135,921
Fair value of warrants liability		$ 5,000
Class of warrants expiration period upon issuance	30 months
Warrants exercisable date	2017-05
Maximum | A Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase of common stock	36,407,765
Maximum | B Warrants
Class of Warrant or Right [Line Items]
Warrants to purchase of common stock	12,135,921
Registered Offering
Class of Warrant or Right [Line Items]
Number of shares sold in underwritten public offering	48,543,687