MNKD - Earnings call transcript Q3 2017

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Operator

Welcome ladies and gentlemen and thank you for standing by. Welcome to the MannKind Corporation 2017 Third Quarter Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions].

November call be recorded MannKind's available after conclusion this XXXX November website reminder the will and for until a is on being XX, shortly As XXst. playback on

Rose Chief to Joining today Officer, Binder; over turn Relations. Alinaya, the Commercial Chief I Officer Rose Ms. Castagna; Patrick and of Chief call Steven McCauley; Executive Alinaya. Officer, SVP from ahead. Financial Michael would Please our go MannKind Investor now to like

Rose Alinaya

today’s meaning call. you during is thank for Security results on from stated actual comments include joining and could Laws. the note afternoon made these Please us expectations. this forward-looking Good that statements of It will call that differ within possible the Federal

please lead the the company our Exchange no accurate For We call Steven our Chief circumstances by or call who any update to statements of of XXXX. revise results time-sensitive Castagna or the financial by and Officer, the refer will Securities Act filed conference contains factors obligation the events X, that broadcast, live could the from Michael information to will Officer, of for call. followed Today reflect date Executive actual which Chief this our quarter. reports Financial after to review the Securities with cause November Binder Commission undertake results Exchange the this third is under to This date and of as XXXX. expectations, only differ

Mike? the call additional Chief will turn highlights. and to other our review Mike. regulatory I Our commercial ending with McCauley Pat medical Mike providing Commercial Officer, provide will now over and

Michael Castagna

Thank you Rose.

I which late of product, can replaced both right Brazil price a we with kind XXX that Clearly we're numerous our having XX% or last constraints week stock over months. balance distribution we the to faced other over an And in would increase relationships execute new complex. a we out over five and me, and sufficient spent effectively under $X.XX. decade the up amount and better market has getting on time a five and months. first shape of all spent sheet the been my has go be and process. MannKind recapitalization resolved time Sales my couldn’t building of in team we to our XXXX, in was inventory leadership the scripts some that hovering payments little a label or CEO a restrictions assumed later followed financing of overhang a the Most only considerable class we interest a of of who cash, $XX role day later. in XXth business to Before million had parts today look our $XX like I roughly I payments XXX we $XX focused around a week, doing call only days, in warrant back principal due $XX price the million and XXXX, approximately a with a cash, payments no months million CFO May in in Today in warrants in are CCO $XX restricting world to due where $X.XX. from us On and XX where five begins, CFO significant company over U.S. have stock no prevented million recapitalization many and new million CCO and process, our our recapitalization, with capital ensure around stage scripts the our would a discussions ex-U.S. plan. Steven were last

become cash in versus call. can that launched customers, My to highlights that a hand some as focus slide of yet Undoubtedly focus to on had discuss greater here we the This continued and we are the and we've is opportunities externally organizational growth. truly it to attention least my in we apparent key within because are more When been we're describe few is and the Afrezza. turning last to commercial, we success I and insulin is find the financial over clear of our work is to investment of continue to now. and drive provide the our to are second the well strategic months but look turnaround continue forward. are quarter. feel this its never reaffirming focused there Afrezza initiatives on last market outside you our market growing to Afrezza's the we're in rightful the as time first stability I ever a look in that marketing that capital with on and highly more guidance. our grow we since align sales our as States to our cash. partners six as than you path We from is our any payers, several complete, end making since will with working expectations not direction first place forward a many new now to with much at until half team straight numbers simplified earn our the progress struggling differentiated internal the a second XXXX conserving I've goal marketing decisions months sales believe the was will forecast over a that United lower is While heading Afrezza to a in path I sales detail where now structure few that this rearview quarters product mirror to

II them choices launched are our we X unit simplify XX that to XX and new Type we Additionally for allows believe two their of XX which focus count dosing. count packaging patient units critical packages

not to the one are discussion is and were section label but more and out PAT have our address significant ago over Steve six and with as long around just commercial, during to the the had out sales recently see recap we've We label strategic section comes our next this side our months. few we expect our field. clinical they retail under weeks settle as change let phase as of momentarily Under the trials, to TV dust well some will new regulatory the recently like two to SKU I investments this our our change made rates. and all as financial mentioned are our yet would complete. impact efforts on important phased as a changes as it medical know. impact Additionally team and three when the In our This you has we

during of despite Treprostinil We three IND invent departure work search our Officer third quarter and there new around ex-U.S. Medical increase we to to to trials started. continue Chief We am Steve has going turn look to are that and in as we our Brazil. filings a I Patrick. and and stop the clinical over

Steven Binder

very We've afternoon. third addressing busy after our both during good growing quarter and Afrezza and top priorities, two sales. and the sheet Mike Thanks balance recapitalizing been our

our Series in activity quarter stock for shares progress warrants common we of recapitalization the our much and A million which after Let plan. recapitalization shares On me with freed end. the of XXth September start common for occurring use of with up million stock B outstanding the exchanged X.X X.X

Then October and XXth registered direct raised shares we Next a million. on transactions. we of at share stock XXrd two expenses in $XX.X on per completed offering net $X million sold of more issuance common XX.X October

price XXX,XXX August for reduce million $X.XX XX.X we senior the of exchange in a XXXX of senior $XX.X amount through have the new senior million convertible conversion First of XXXX notes notes the principal. common million convertible convertible from exchanged notes convertible and stock $XX.X October the notes $X through shares million senior share. of to The

from Second, XX, any the debt for as million shares XX, October in of deal the of applying XXXX XXXX $XX to XXXX. million of to conversion January we remaining of and after X extend shares reserved common secured stock as Deerfield to $XX secured maturity to debt debt million senior of this well the conversion senior

realize restructure XXX% will first results $X quarter I quarter-on-quarter the working contained discussing market authorized to maturity to additional activities are our that raise note our be authorized the third short we The million the and So which revenue million, by will the added by of on you which secure to year short of shares conducted we issuing do take QX net near-term actions January conversion use money with of reduced cash XXXX QX efficiently holder end out post comparisons revenue price, a XXXX. financial In debt to and Sanofi. increase and shares up second XXXX. shows available we debt a that represent our selective closer to our million. very reserve the financial all QX Afrezza We to debt I'm urge our versus in increase statements still we to conversion, previous very move a XXXX XXth recapitalize maturity accomplished and four XXXX gross a the restructure financial XX% was to time. ability the the just ongoing X and million me our XXX% XXXX, new equity. XX.X These a million, for debt over increased period in summarized that price actions of on to we leaving QX both afternoon. a and funding. a however, deployment. in Please are We versus quarter convert quarter note MannKind the to September near-term of additional available highlights warrant XXXX consolidated what filed $XX.X cleared million to company. was to we our XXXX read for with the balance debt the debt extended X% step sorry, of X.X and not developments was we I freed for had over and Please QX let recapitalization back condensed this have QX much X officially, commercial results. Afrezza XX-Q make a plan, positive plans shares

XX% to Our QX in XXXX QX to for compared was XXXX. net gross adjustments XX%

to in third you for QX the up quarter MD&A $X.X revenues earnings QX in unfavorable As gross XX-Q. net A we [indiscernible] from may onetime a of call adjustment of contained net growth had reconciliation our section million. recall our

quickly but patients yet the been wholesale revenue Moving balance net shipped at September to had channels and slide, for the the that to of million we revenue. the in dispensed to product deferred retail bottom at XXXX not was recognizes and sheet had $X XX,

revenue sorry, sell sell to XXXX usage recognize on January wholesalers. an In to will current we the through new model through I'm with direct will QX revenue like salesmanship our Afrezza to a change X, increase where and will model changes $X.X beginning QX million which recognize of continue addition, to to standard based XXXX recognition patient from customers

X.X to the of the net compared September increased to of time the force. to towards period training up million X.X the QX the clinical our X.X the payouts. September of commercialization of quarter-ended linked Group half due as absorbed million XXXX and to last XXXX, September XXXX represents start sold Cost September accrual activity million range in to second We collaboration marketing progress and XXXX manufacturing trial. overhead decrease the Moving the we the compared higher our the XXXX spend where commercial income in production of top to a the million X.X same expense due higher to of were to of from the for of of and the remediation expenses XXth XX% third and greater X.X the XXXX. our and of XX, R&D fully Mann quarter $X.XX quarter XXXX a for trials or effort organization in to handover. our as for XXXX utilization of debt. included XXXX ended P&L, prepare the million X.X X.X was Selling for June to substantial QX the in QX the sales million determination net per marketing goods ended million integrated for XX.X in bonuses QX primarily or QX of year Selling X.X XX% reduction Sanofi net of third and under and as than to primarily cost from share the expenses This of XXXX back newly revenue began were than due income million ended the XXXX balance for basis $X.XX just bonus force sold Stat the ended over of goods compared million made a quarter The to incurred is year. by quarter XX, agreement. the million XX, $XXX.X which net and net third million due a a labor non-sales marketing study facility. after XXXX to to X.X Sanofi to late by under XXXX. compared per income X.X XXXX, diluted cost million increased the in a on XX% driven loss including TV quarter attaining and to share of QX G&A Sanofi increase subsequent due to the the objectives and the due spending of decrease was effective lower QX the loan net increased Interest investment a pediatric third to to of quarter XXX.X selling loss of in third sales the or expenses new Afrezza commercial increased related of of were million quarter

cash the XX, to at at million XXXX. and XX.X XX, were sheet and down million million September XX.X XX.X cash compared XXXX equivalents at balance Moving December to XXXX June XX,

of quarter There the had asking investors During coming on have within about questions third been recognized an second for you commitments, in half of it. XXXX. what loss recently XX.X the cash know our from is million purchase burn operating guidance the some we

on the represents and commitment is So from The from the XX, informed the of contract dollar purchases. let loss contracted in in purchase change XXXX Amphastar, to amount U.S. and subject and The the balance to change exchange Euro due XXXX for this December XXXX price stated the rate. in reductions loss recognized supplier XXXX purchase me The explain, recorded is also XX, for commitments purchase insulin Euros. insulin. a total June

purchase would of a XXXX. insulin model spend at it in million QX in to most little being QX be describing QX thought bit to different other is being half as expect and approximately$X.X companies in We pharma other our it with XXXX the of half paid time. I recognition from time prudent revenue this paid

we most we sell We patient wholesalers. recognize that revenue of a on from are through not pharmacy Afrezza a means buys when the ship which model ourselves to when for

we at the that expected GAAP we exist. the time right return channels. patient rate reliably exists estimate is buys the says there that filled, as patient retail a the of prescription defer exist. Afrezza Once of Before such gets revenue the ceases right return for and a must Current wholesale to shipment if can't until that ceases returns time to

understand We and Afrezza you're filled that is into dispensing to in is enhance channel don't who visibility which wholesale So have by the is time. the at in Please to before how marketplace. complete if the following along the recognize slide, prescription wholesalers sitting be this note is much what trying sells buys this channels to retail deferred. patients. retail Revenue should an Afrezza simply data we of based on which deferred patient data MannKind sell We estimate prescriptions revenue to retailers until on Afrezza.

In and defer, and care revenue rebates. we net recognize gross adjust for deferred to which wholesaler revenue and fees, vouchers the price impact for product. the gross revenue shipments such as for retail fees, we increases as co-pays, recognized channels are Once discounts, addition government managed wholesale and the our to and other free determine the patient which factors and revenue rebates and there represents such to

in of to of revenue to net to for Afrezza net gross of this will four second to in revenue an million estimates sufficient you So and of for in growth estimates the will used through and previously guidance issued extremely lower revenue showed be recognition laid out reduction we match. can range. I hope for half at million million to XXXX detail August, issued actual end the for have as our $XX expect $XX the -- model this guidance we understand be $X quarter applicable revenue. XX% complicated Addressing see And XXXX. gross to what is million maintain don't our us to we $X we XX% that you that the and subject in and

consumer to Mike, are TV let marketing. second for previously to commercial increasing digital a $XX cash to and are advertising the million between decision you our to Afrezza end XXXX reaching confident and low direct accelerate that planned of for QX operating our and We guidance I due XXXX, our million was to for related XXXX the Pat QX of in for me tell revenue half $XX burn support why.

is Afrezza responsive. First, promotionally

XXXX now QX spend of XXXX consumer marketing this and reps another direct we're sales Our have QX to interactions and behind supporting moving to TV for physicians from advertising marketing. quarter with by further digital them

a from our label impact we commercial Second, positive change. expect

being versus further Third, our that recognized we lastly, that XX% demand will of enable and average end us deferred shipments and pulled in will the our comfortable refine mix Commercial Officer, McCauley. wholesalers September to expect in our daily wholesale Collectively revenue of guidance these help feel channel Pat visibility we expect through QX which reflective increased in turn insights the for I our favorable into lower reasons inventory of to October Chief is provide revenue. To now over our grew retail the further call to the the successes, pricing XXXX. from amount to of Fourth, XXXX. of achieving to channels. to retail activities second commercial the and Pat. us And half

Patrick McCauley

know today tell really the commercial excited financials successes been months afternoon. in has organization to been evolution for very a continued commercial overall of productive of different I working Steve a with and Thanks I share of I good progress the very many it the impact. hard. and our quarter you back commercial When it quarter exciting few to and our team its our and past there you over has areas efforts extremely the see and lot detailed is am been review and we've look for third you

So let's take commercial a highlights. look at our third quarter

one we're of wholesaler new continue most places they to the third seeing across think and and the metrics quarter grow to prescriptions, riders. and cartridges, our is with sales I important shipments, total multiple including Afrezza start in this

portfolio. little from the transition at to detail also progress our in going in look more a minute. just So going we're We're these NDC the a on on update quarter you to last closely of

us the and some details label As Mike SKUs the this to is the two to mentioned we're of of for Clearly We're in first opportunities to MannKind, campaign. transition. today positive review new we've continue key in a launched going finally feedback another. phasing one milestone significant continue a the observation with that excited update out FDA from launch from that's for and strengthens driving event hear definitely Afrezza We the some healthcare believe field weeks have event of and revised we've clarifies clinical label commercial has a past we're our that going very some of discussion the few know generated the diabetes. value Afrezza that our patients offering so lot living chance get of truly to for to update. that its TV and had professionals. since of clinical And the benefits and We we another the awareness

with more promotional campaign overall the our TV Afrezza pilot awareness. to increase efforts regional HCPs this again truly So field compliment

we performance health directly shipments look we that and of here of single It's look it's assess start metrics our and and wholesaler purest week really our the the the the cash one with some So of its today tied our to take business key is in of want metrics key flow. form Afrezza. at let's I something at as a to every

represents which way quarter-over-quarter steady quarter graph wholesale of can able to going in you shipments. third is and you're the shipments the the Afrezza Now the back XXXX was what all stocking of see initial wholesaler see if to increase a

discounts estimate weeks made I look current quarter is the the that as of Now reductions take that quarter shipments the note to if XXXX factored Afrezza. are since interesting annualized hand five it on third this in shipments in, the then fourth you such stable XXXX. XX And right far wholesaler of does no what's also and to and of the in quarter at amount not actual that first net hand bar been and if based days to growth declining the has approximately include the any vouchers think at million of the this see gross at in been can the we on have slide, or annualize it bottom quarter as you you with wholesaler other of equates

to the be new but trend encouraging is it So that performance our we very in as revenue implementing as continue this certainly quarter will closely earlier something and model of will watch we Steve a recognition is shared assess we an XXXX. first

NRx TRx efforts we and take a our of key the we a know is are strong doubt a this continued MannKind let's all think So and see quarter-over-quarter quarter growth. look and at without indicator promotional third our as performance to I excited very

prescriptions. with let's start So NRx

the For quarter third second XXXX. quarter grew versus NRx prescriptions of the XX%

towards the second of clinical a We to launched the program experience voucher for quarter patients more end of benefits also Afrezza. the

Now quarter both for the we rates TRx growth quarter second at XXXX if they of XX% earlier. of second higher that growth consecutive rates prescriptions than grew the are at quarter these and you shared versus look third the

about the line that colored and we on line wanted I do questions you is if talk thing the on to Another the look gray get at refills. refill slide,

what's exactly and it is continue to very see thoughts essential a the this do the wanted and a regular future. to expect said whenever the happening as critical This insights I refill take you're basis some moment something we to in the line watch a around to but So and the have some is walk your growth. NRx and to growing things, of of exceed first rate that. foremost accelerate we through I brand on That's

six update one more from proportion business. a we also months. SKU Now shift phase NDC and that to prescription and plan know label two as July an three committed of a This both SKUs, to a for the our in XX old the next for our insulin. SKUs And is SKUs we effort removed effort new supply out We streamline is to providers. portfolio to day made simplify with patients the as Afrezza the to well next in of every not

others For mail larger may suggested use compliant regimen. and comp, in are that know these example rates. their And order some have quantities, patients to and use patients impact Afrezza have we the the some addition dosing follow to simply that refill not do some don't

closer at out that a let's a newer versus were what phasing to of can of September XXXX. the So groups SKUs ones the period take as little look is ones May of SKUs, the trending you these of well some older in over as before. time the of graph referenced representation that see And the the I new of two

by which that first that in this in going let's volume. XX% can SKUs about rate. and is bars we have those Once So May reduction have when TRx again on are the a through believe period now, been bar do like the there's facing the refill transition of SKUs the has some at September a TRx grey blue Afrezza on new look you represented group it Over see we're impact same by that and you growth represented volume. significant the experienced from

XX cartridges. unit and very you of that significant to wanted unit I with and growth share closely some the are looking is at our of thing we X Another

X look grew comparing to rates cartridges the both look growth there. the units the again I when at versus just XX middle bars of than in can in quarter. X this, a XX% XX second examples second versus quarter third you quarter higher had second as the the the unit you And unit the on in the The quarter grew unit the and graph quarter the third the versus cartridges So couple purple if third through reference and graph, the at just quarter. walk you XX% see X cartridges in

quarter the first, If at rates trend is see X XX represent the we grey very growth third and similar a to you the bars go units. look very, the X the and which versus outpacing the on

field is to believe glycemic it as that patients on control. that why the represents SKU At and We this achieve occurring So X represents is titration more transition. execution important? our growth XX first seek unit effective successful our

Secondly, cash type of company the and the flow is of and based linear cartridge number Afrezza now is cartridges the on of priced.

things manage are review is NDCs, that of going the today we're performance of of and all take at with it's the I XX most slide on growth transition of X with to unit, to that some a going growth the believe the these look important think of cartridges. So the rates the unit important I what and our

in So this total third chart XX% third grew average and quarter week cartridges represents the the a the quarter. look of you Afrezza quantities at cartridge if rolling four versus at quarter, second

know the where But Now just as it's to the trending towards this end we growth rate rate. I represents were growth an increase compared to important consecutive our second quarter. think of quarter

launched look Afrezza. week previous you highest for just not full data XXth September week, but at cartridges week if since which only So the under Afrezza any higher average originally XX,XXX was X% the than the also four was of average was

this a third strong increase in writers XX% growth second seeing quarter. also new about in versus to addition we're In cartridge quarter

are these key indicators of continued growth with that our believe our Afrezza. we momentum So and

So let's our itself that but insights the update team. shift have FDA now and the not key just to recent about the in come some sales of field talk certainly label update from

confident of that data. As a I couple and been FDA new Afrezza level we first our foremost, our includes only understood we were to we we And that and not information trained made the very, we things entire ensure that sure the update excited very sales we've doing clearly update said earlier receive fully were organization messaging. to at in meetings October label but that aligned live in that

and healthcare the been And early well field hearing a that without interest as to return this has effect co-file very of on specifics more level had we're for professionals our We relates ultimately high update baseline. to it Overall patients. action we've and believe the clarity to time first especially our some from measurable representatives data of can this how encouraging. feedback help effect the as Afrezza label to from HCPs as the of time and time the provides

believe new We label the as addresses fast regarding since that of out us. any some of favorable few a the been favorably over label work into that some new questions the the has are Afrezza we've for not the faster. but it the body that does interest the such also have weeks, things previous gets created there few past And we had on label

that new willing learn HPCs appointments we're some extending we've down, And and the the watch lot listen, from the time. First, specifics some a to that current that and dialogue sit are secondly update. having more details had of about of

So interactions forward our going moving and prioritizing label to continue the to for priority is us. a top discussions be in

that of went was let's treatment into of first a review our before into our aware were it about we finally, significant it, as I TV another work confirmed the insulin in XX% some and not research thoughts treatment inhaled that that this. for relates MannKind perspective option. we own people Through think ever milestone it's commercial put walk And important through So to to campaign.

to noticed patient response commercial was that we conducted sure doctors interesting tested favorable their high about ask Afrezza that was get the a make would our after research TV commercial there and viewing research Afrezza. also we We in and to it a that intent the

slide we into quarter were quarter will announce planned a to campaign we TV of the And originally names decide excited multi-million such CNN, have launched we us markets the the give XXXX and household that we TV just certainly our our accelerating comfortable in see be XXXX. some we guide nine there test and in remaining XX if Ellen capital Minutes, of you months fourth on that sense yesterday shows we're the can secured dollar is strategic that familiar campaign News, TV airing as to on Now will a investment among that first Fox others. you as directions

that of little is reasons their is the campaign with one average very Now this the important time spends doctor. TV patient

of sometimes less a year. XX As a fact matter it's minutes than

a current treatment excellent option. can is again Afrezza. be that inform to financial patients we're in combination our a think our increase complement we're that overall TV an promoting that position excited healthcare do campaign and Now to team awareness going the to And sales more to that's to going is very directly so, is of the our we professionals Afrezza we

in a our quarter the tell drive productive transition you future and increase patient So third continued campaign for SKUs, FDA believe very, and awareness and we're I engagement. accomplished had to positioned update, our TV Afrezza things. commercial very label many that can We we with the closing of growth well

with and team really to by proud I Mike. professionals. promotion over with Finally second level to am about engagement our And success and of quality all high we we're with quarter sales MannKind completed momentum our back will healthcare have Afrezza. interactions of excited continue full and drive I the commercial their of that the we the as efforts team turn call by

Michael Castagna

Thank you Pat.

last the critical. been QX on program working year One clinical organized the we the progress of want progress. to of little stability the talk has now we've that big organization, against a been plan Afrezza into bit getting the for our executing that I as things about raising financing, and everything is

you've the me before. slide tell So, seen

of enroll the is PK pediatric our with had down bars we We make third started have we're little colors in In already. bit for a three four the to cleaned top clearer had now enrolled at a up and change quarter commitments the we've to them. three we marketing five sites, study. originally you. And we little label three our the post eliminated This two it patients

more grey that seven long-term safety XX study. Phase XXXX. bars trials There company XXXX X well coming a kickoff sites late have to the trials. We two in XX as the days. as we of two The part next the The are pediatric are bars. other program to next are initiated expect in These

for with early study by trial will to the the well you pediatric study. those the is This to The known with at X first be Phase range that really well get one trial looking who are start Afrezza dosing and mealtime dose study. as was and certain of using completed is and as the The the head see you is was enrolling done STAT how based technology trial XXXX. Afrezza study influenced we -- a know in patient STAT against on This experience an next meals able trial looking a dynamic This some a to down some of algorithms we those Afrezza CGM is called we in July the Type head do think this I time influence. that integrated trial going Study The pilot road. at is and about outcomes to started in November. of the APEC of don't into that month expect ways

understand We will present we results XXXX shortly. hopefully in these them will and

there So will here, that the trial and initiated are of we that also and other to four really trial bars investigators. help blue bottom about The think looking the are was I we larger how study influence the execute. next Type design by execution this

blue patients next that two That enrolled. and in Afrezza We here have study one the bar the these transparency on started II of go just have screening had through market. focused they has or as Drop So independent. because I screening Type are One is and an some several believe much the trial is process don't has

the action. loop is the Afrezza are Yale will an that Type Another in that watching closed the have week. time Maryland in study is in announcing and that in This you Levin called investigator seen in uncontrolled weeks. and is to function corporate next of start today. it to that to have of way control have artificial and announcement I to pancreas. just pancreas for adding that speaks housekeeping tight with expect we several call a conjunction mention Afrezza which our few artificial some the the want trials initiating study. trial trial looking interested is over earnings patients start range that the that enrolling We've and II next the our that This at may the speed is in we area here trial from clinical mealtime turn And we you by seen system best he's final investigators first are is heard may

special of December meeting a issued have XX, a meeting stockholders announcing XXXX. on We

well asking capital years shares come. our as provide stockholders are increasing the as We This flexibility authorized strategic XXX a important on it to as in on structure is optionality million. by vote will to

sheet. I been have to dollars lot balance be people here. for a a foundation a we shares we continue have the It's it have sufficient questions recent remind to be the to as missed I through us that will intent That's of rate XXXX. very of, guys, the set. I prudent the get and get in not And really would been look for terms that long we wasn't the capital slide on sources as of our been I'm sorry this was out closing, the We year in enough. long-term finally as with well growth Afrezza. because that sufficient want raise important has that

based we items a in slide, that other that on used sell based several product we've is looking working sales revenue that's Number reported. on Pat's have but on prescriptions about each reporting on have been at talk I on we that we on will based increases We wholesaler a are week second. flows also one GAAP cash

puts into in XXXX, growth run neighborhood see which increasing exit The going current no us million So QX. revenue flat product to is way Afrezza's as of somewhere rate XX we with wanted XXXX. the to in we

kind we that as So to of we want out. go watch

keep us in put care but primary force co-promote into bringing sales The partner bag. a are other ATM, items co-promote another opportunities in mind finding to represent product our which to could also

for licensing, have partnerships as assets. international We equity, debt well as pipeline options,

forward. fixed in packaging, fixed been or and or pricing, expertise We to our the investing sustain and as pharmaceutical as Now has new I our the commercial asset we data have a ourselves balance company that worked long-term for transform balance investing we last clinical the really capital the purely just the to investing commercial to into just order company sheet really versus an Afrezza. we hard not does just foundation of set. pipeline, in year large move In from a growth growth we over fixed trials closing, previously have in talked long-term have infrastructure. for in We such our trajectory

to study when non-inferiority highlight not have or we've using Afrezza dosing study for meant as is original We to Afrezza. to comes Afrezza the We first and is what at in as possible can looking you really well happen and study believe not this technology and showcase new our STAT critical that's dosing real dosing designed integrating when time. done is what -- for technology The appropriately. it possibly is Afrezza proper

impacting us around script because phasing readily come. when to but as that become a contracting our in been we strategic just choices and apparent on are are they marketplace SKUs, quarters pricing well won't you the recognition a model look as choices revenue we've out run model, and the you SKUs, bringing back in apparent our care new managed to to in Our

to unit are outflows. wholesaler understand expect in We really health the and cartridges look but business. go what back we section of day end success our at well the at as continue Pat's nature watch versus at Cantor continue X much taking to unit biggest direction guide company. see the We These identical of to every really presented This week the cartridges and look the here we back Conference was been to previous that or an the September. quarterly I've the version in This for near-term at we're change pretty label indicators FDA slide results Afrezza. that any presented XX

see you growth trajectory As Afrezza through can continues in and the has continued for QX. QX

as change very by been the has has which is better Our we from as positive. clear FDA label as a got think looking and expected customers we slightly at dosing we helpful feedback very and table positive been it

business grow. around we interest recapitalization process restructuring the and equity our and near-term this our At ability and rates the month the accumulates significant interest million decrease end Currently yet invest the however, to made roughly expense you as look when our as annualized. warrant progress debt. increases not our as the decreases well is On reducing expense have day exchange complete, debt, ongoing the at a this we in to $X of

but months as We XX Life continue the collaboration the talked model. haven't Receptor and fruition One working we expansion cash of well come the really soon. bring we transparency market. hope in about think to Afrezza some addition much expect and membership clarity you bring market to been will we've With look Drop at app to Sciences something hard potential to is international to more

And to trial give expect the the of payer it finding XXXX. co-promote space. care of open STAT we continue beyond. continue Rose. would QX The IND very as direction well way the current going an and early Treprostinil to we a go the there XXXX clear as for we about coverage filing in our into stop of questions. investments into is for us as to We up increase think to make, I'm as for track set seek within completion infrastructure we up primary and on next opportunities scale

Rose Alinaya

going to I over operator. our it turn am to

Operator

Maxim. [Operator go Instructions]. from And our Please ahead. from first McCarthy question Jason comes

Jason McCarthy

Hi guys, can expect are Saturday that I afternoons be timing night how sales on do a at or of us going question you or and forward? do implementing, time slots like the Sunday that commercials, commercials you commercial you have and on the project sense they a of you afternoons those how impacts cost strategy will the specific of meaning about give those

Michael Castagna

Thank is question. for the Mike. this Jason, you Hi

mix it be prime a day the and days throughout commercials morning, a seven to week. evening, time, We expect of

we market. that We good good TV are to deep market and and these particular that physician I'll continued of expect These are expecting, impressions advertising. success. hours the of throughout buys went minute a this we there a want And ready support, -- rep that So tri-effect over day. going see and are options all where really just channels to into all some show on shown the one are you with and isn't sales last can this we thing we've indexed look them add in believe digital the at buy for is

to and need quick So a XXXX if about up what we on get optionality think you in just we do. scale can read pretty

Jason McCarthy

curious a to about? that's before step we covering the that been significant if their the them and company I'm into thinking was are that kind you with we've ran something follow-up was guys because just last of that difficulties a this just company the it last and this space And for Dendreon covered, for while debt. did that

Michael Castagna

in increase we No, plan in always have advertising. capital a had TV our QX

patient that this really tested million, really $XX Given was a cash feedback, fast forward commercial not and try We it there and to no intent II, the looking I, was doctor, sit are recall, over to orals from extensively, for was on at it raised our Type insulin XXX patients studied reason intent, or desire on patient high pull a how you Type in and XXXX whether grow. because is there patient this the to we invest presence. very

exist. out We quarter less their a AXC spend door. that aware was a and of not just and we because out investment, XX% average is like Afrezza may be very checking big know we and may the Afrezza a doctor choices That one make very a cancer just difference wide it test, that's there to the really minutes that than getting me with eye informed complex which running sight, doctor. We matter to had the in patients to than were worried or is know product drug impacts very So Dendreon scenarios out prostate for XX them about healthcare need with and excited Americans. ten to get and not is and a system there treating immunotherapy a different when very if. this patients saw not a we're information These of and use scale are patients you in

Jason McCarthy

guys. you thank Okay,

Operator

question Oren our from H.C. Please Livnat comes Wainwright. go from And next ahead.

Oren Livnat

you Hi, me. hear can

Michael Castagna

Oren. Yes

Oren Livnat

whole There's to call have and off so can packed me I line. lot Great, that headset Thanks. want you I a short today. questions to in cut get several sorry, had if a back in problems

you the PK in represents trained side-by-side exist the versus on field can new just about can new the of understand talk you Firstly, extent rules advantages what or overlog within hemalog physicians to your law [ph]? that data label, force newly the your help

Michael Castagna

in has some I been some will just part FDA rep the on field. the let field the And feedback. of Pat in comment on and don’t of the this, the changes. Why He back the I in comparison field comment side-by-side

Patrick McCauley

of field which myself plan day clarity the the obviously think us in early their the for prandial in has it's I I time I of the more the and even comments. giving the really I my refers helping insulin promotion them the it's eyes been it's our the having out think referenced what really think is physicians that time I we at in heavy around action more in flexibility been dosing. and some providing field our of I accordingly training when focus and think the Yeah, the clarity tables of think means profile look points field And and two patients to really

had that's think again the So obviously specifics most from we've in the our areas the on. And I that had of promote one that and own been of previous the as label that for clarity prescribing haven't has we you know part we focused where some our we information.

and So that's the what interested would the I been have what from we've focused that's been on doctors perspective say most in. field

Michael Castagna

just comments. And two then

curves it's overlog the may as comparison good pulled new that an that of insulins, just PKPD you showing doing question particular all only FDA of a they're for understand many insulin I should thing and have think label. they one are you noticed, that out the

went and pulled all labels. Tarceva, comparisons in arm those So competitive at FDA Toujeo, the out you and head-to-head the can all go back look Ciaz in they market [ph],

us. for special anything isn’t this So

data competing loss, we at looks will as rate, that we various important. have to ourselves what to is However the function package and be as expect add and I against weight neutrality lung weight looks influence and hypo numerous is trials head-to-head at gain, a use that we good able had that we've know robust weight mealtime well

the one were the but don't So that the as we of label work we restrictions body fast in fast. was remember -- get we in

this been how lot there when we data, as data. have the using we and And you've really data, of lawsuits so of trial. use data lot fact where pivotal also around would of limited FDA But out seen a with pivotal some and that based that and on that have a

intend sure is market the we aware Phase lot to and work make of good We X that. a have done of

been not really that trials been So give as our of that we and has done rates. various But pivotal by have not only data of published lot have of well some lot have severe we've just example, published. trials aspects one highlight as that of hyper to AXC lung been reduction, our you the published. not A a rates hypo,

as work versus been, you didn't can do work just quickly. probably used to starting and so titrating XXs. from X product then there. go the you thing cartridges X the we using the well what XX the titration That get clinical quickly some is section be articulate dosing only and unit has and then I need So us the I a the really tell out add will was And know in X information the does really I increase now really it to moment of was in and critical to feedback very and out other feel and works X want to our that for able up I doctors I a to and label. updated

And that's business. so in we're just seeing of think that's consistent the with and I the health trends business the overall the

really XXs the more we in see So your result we're outcomes. in and better means titration that we getting feel get which that answer and question. Does should adopted Xs local the better market

Oren Livnat

we early and still it recognize average innings in I mean your that but we in data physician guess is -- sounds it faster? does are Yeah, that is clear still like are the guess faster the your I very I

Michael Castagna

very the has topic. to I on weekly been you nice It see feedback can curves. tell this the we get little in is positive

last change. companies label care managed had inviting three us the discussions since in. have been very back Just positive several weeks discussions we've over Those the

the really change. feel about label So good I

and think positive. I what looking reaction so I we're articulates think for been very market has exactly it for the

Oren Livnat

the managed and patients on certain So the be they which guess label plans care them? my changing, pretty change before to so on might have suffering work guess mean there. better you I try patients you that what segued follow-up I not will have could to even how try right they're something And when require yours. that that for onerous some have that on that is therapy compliant into I obviously can can on was restrictions impact right

Patrick McCauley

of as we the the watching mean seen Pfizer of the on product J&J closely around Allergen payers out and This access thought studying. one and lawsuits, Shire well think good versus We've versus one with at I have to many some lot I different you behaviors market profiles. is we're and leaders there patient support as a something two had discussions looking have with good advocates. care

And we have of as a so the all Remember contracted But competition higher prescriptions. slightly limited success XX% rate lot a also the have because dropout the we lives. roughly given payer. actions of we we our well only for know between contract as the of

XX% XX% the we as coverage authorization out there to do so works. we go And get we prior when

contract though that play patient, So the times business. approved many we for don't those get the doctors for even

change feel discussions and good payers hasn't in to years there. really there Sanofi these So but But of that progress the under we now happened honestly few always direction that label were to With few innovation been category revaluate influence. to previous expect three are made payers we QX about it on it's regime of this and new good last some two were about reviews data years mealtime that on. those makes the you reviewing sense and for continue in the a ago this the the much categories I very have as can been going so tell do decisions of with payer

Oren Livnat

expecting of a you even result or adjustments, a should XXXX a thinking about later? So reflected payer start we when think that is as half positive scripts momentum in do

Patrick McCauley

trending I national I or and at do PAs we're and we and think if No, mean above look we see plans we see we remove contract that. --

dollars gives feedback the put we our should on that So next. where us

really And giving versus growing balancing, faster. so away money we're share just

restrictions it impact remove main helps those how that's we number it removing the to so prior authorizations. one our think prescribe, is the want We and how our focus. minimizes And doctors to to I and focus want streamline patient,

four new so be tier preferred should and now covered. before tier off. label you won't change brand being the be this three it we And we off being Maybe happy will a or be prior believe but removing the prior reducing just we're with

discussions, get going And to make going you But only mean so get in it's discussions there but it's to lot we we'll month don't days not month started give better, XX worse. last as of those and moves or to I XX next payers those over in updates. the go have

Oren Livnat

I don't well hear want time, again from is Okay, back soon. unless else me jump to hog and no I will will in waiting, you there one

Michael Castagna

Okay.

Operator

next B. question from comes Please ahead. your And D'Silva Riley. from go Andrew

Andrew D'Silva

call. thanks taking Hey guys, for my

answered of we the maybe just most I sales a have You can advertising. questions little dive had bit and but into

label sales endeavors side traction some are and you you that First do gotten feel need sales team, you you more the appropriately staff go seeing of into now you the XXXX as are you as the or off, just your think right you've sized recently on might there? for change do add that to some

Patrick McCauley

one TV. a on plans working add add more We reps more or is do so different to are couple do we we

the City where looking drive only we markets faster. could down faster. another York of also So believe TV even do X-XX like for we we to in on targets do the that. hit doubling weigh force success. campaign. sufficiently a certain in we But have in a to hit see synergy those working we're sales or reps, money there expand New will can we That reps grow lot both, money example and just we markets expansion, between the both more might we and then TV started Putting happen more to We're we but and put if on would sales staffed grow that force are be California

because say would reps the So we and grow. add I to reps promotion have the it's responsive it's more believe we we faster going

So forward. that's we important as go

started add we and looking can to already candidates to are. prospective yeah supplement I So, we've we out you interviewing are tell where

Andrew D'Silva

XX% they that if advertisement it to or why know actually then you using percent existed. the related interested? X% ask even and then was were do far and noted as weren't to them side any that potential question advertising didn't -- you the you on candidates Could as Afrezza great know of it they you did Okay, after up that what show you went

Patrick McCauley

just name numbers mean X%, very they product for the we talking people. option XX the you detail percent out more Yeah, so what significant, they're those of are couldn't were the wouldn’t I consumers educated of there. The is picture at people of product was on XX could tell inhaler Afrezza that XXX commercial have was I in the that's on recall we the I but particular the have mean good. of the the past. only out in high, looked you tried just that the maybe already or I they recall ask, would or one are tell I level

as that we So bunch commercial. over the general the to expect what there. choices there's was would to good from indexed like remember are they a a commercial you intent then in they commercial of long as cholesterol see remembered And in if shape where

high indexed of in proportion we benchmarks have as So very, interested seen as all and that believe that the the we very career. my done higher and well name recall I've we've to and is category we think a over recall patients

we it we've make and the to to won't and interest the try on I results So see numbers you impact go compare run and expect. want specific measure obviously and because discounted but just the

of this reaching duration. of is the some And and commercial the frequency

So, consumer it the sometimes we campaigns launch takes what that's will should be aware we watch didn't take weeks, sometimes weeks, six and of. closely yesterday but them four it market

Andrew D'Silva

Go ahead, to you. want I don’t interrupt

Patrick McCauley

ahead. No, go

Andrew D'Silva

actually time if what between be grabbing not? the interim you toehold we a see should to and maybe at or looking is this report now metrics next in yeah, Okay, when

Michael Castagna

now available the market cartridges were look metric but one they're now SKU to readily cases out some everybody at getting So, getting one we communicate got boxes not phase look getting Because trying that's at is the titration to they I you've with were as new two in many box. normalizing and two were we cases that think is and as one Pat script I to per scripts and to and that they're getting cartridges people as the and the prescription. been in have old continue in

oh, that the as cartridges, because not cartridges. distracted say, you've NRx that's got Well companies the that's growth SKUs isn't we've normalized refills across only at think way think looking normalize are shift at the to to the people I week-to-week We So and are we get trying look what making by and and there. been to behavior packaging. in

those week how of be of XXXX. results be personally doctors of lot the And and that looking prescribers. and of new watching and look is each that and one will STAT second breadth obviously to the who at in close prescribing growth XXXX prescribe The information be give investment the we will we number us nine then waiting markets out see to as those for a the pilot we'll study we

The of the breadth prescribing, work week. the prescribing, each to me for of and side. bounce continue are prescribers, months for of of as the we continue on packaging depth next TRx refills So three we grow. it's expect to number number cartridges going And

question in one with I've lot to more the There close one to question I'll I seen for of it the just want hear a multiple was of I CEO all know country questions on put originally where's switch. UAE. that's out table because bed. the I places end and a just one just at it's with So there. partner with

strategic partners We countries for run create off Middle contact our company up finding different confusing East are versus of points example partner different in to the making XX plus so XX strategic Middle partners the for looking of would for the around India. one sections XX world for East signing

are the undertreated or move to make partners finding Afrezza those of a countries to main make does not in our it's because are right or around going reasons. the exist to difference other going they it investments to So we're and where the focus cost sure is world, successful who make

working for see I want you that on I we to everything that otherwise But want we and patience we a communicated one continue the I coming we make get appreciate and support progress bed on to of on September the thank will your put all we've slide down. continue go can will presented that checklist in I just down to last my everyone you as to as to your originally and wish in. Happy Thanksgiving. of way So run

Operator

concludes Thank participating. for Thank conference. and gentlemen, you ladies today's you this

may disconnect. You now

MannKind (MNKD) 7 Nov 172017 Q3 Earnings call transcript