MNKD - Earnings call transcript Q1 2019

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Operator

Welcome to the MannKind Corporation First Quarter 2019 Earnings Call.

As a reminder, this call is being recorded on May 07, 2019, and will be available for playback on the MannKind Corporation website, shortly after the conclusion of this call until May 21, 2019. All participants will be in a listen-only mode for the duration of this conference. [Operator Instructions] Joining us today from MannKind are Chief Executive Officer, Michael Castagna; Chief Financial Officer; Chief Financial Officer, Steven Binder; and Rose Alinaya, Investor Relations. I would now like to turn the conference over to Rose Alinaya. ahead. go Please

Rose Alinaya

thank and joining on us Good you call. today's morning, for

are need Slide forward-looking you statements differ and materially on results indicated stated cause to which statements. to could uncertainties, X, forward-looking from contain As to will I advise actual risks call that Such expectations. these subject this

now on and factors, the will please information Exchange Commission, the the and presentation. Securities prepared turn the the this XX-Q further to Michael For release over see our risk earnings slides for with our report Mike? Castagna. call filed I CEO,

Michael Castagna

that Thank four through are perspective we you, give shaping strategy Rose. on to Today, that the highlights entrepreneurial outlined some out, one, Overall, drives the this laid innovative I'm months. Number focused going XX an pillars over transform on cohesive looking year to you the past on up. QX to a go enhancing how shareholder see solutions. spirit we we slide we Company with implement the on and value key

we year that hopefully, one we announced to where over was space launch molecules Sciences with to pleasure recently this pillar that help looks Life regulatory milestone United announce be the United beyond. bridge you've Treprostinil. cannabinoid as we platform, us seen recently first partnerships, Biomm, approval, had the hopefully When and expect, Canada surely approval. the in India Receptor and pathway is to The updates I Brazil. last the Cipla, the in the $XX.X continue in And of Therapeutics as received. to with million go Therapeutics our for in Technosphere to secure in and

high-potency United BluHale the manufacturing partnership started have think Therapeutics to out a proud are together factory we care build new I'm make that that to next which very very QX to capability facility establishes within and We molecules, a connected move control. during milestones we and to related MannKind. announce we The continue things to strong as capabilities. about

with other BluHale in to as Additionally, get think we the continues about care connected to Afrezza, and molecules integrate pipeline platform our how future. help into

Afrezza, QX Afrezza. back launched approved was in XXXX. of by and is as all MannKind in Next we know, XXXX

ADA. new fixed I'll highlight the as continue ultra-rapid to you second, the with that in was to articulates ATTD, recently One the Levin profile was Type that on at at focused continue II of data dosing AACE, profile product, scientific was study, that acting as recently accepted presented and which is show on happens We what out the what we that what Drop as know study as late-breaker the II released highlight well use foundation Afrezza a really dose patients, this laid Type see see you'll in patients based in and of Type start today. I a at to properly year, And do you Afrezza you'll in XXXX how XXXX in focus you when the -- we on

yesterday. million enroll our and help were we activities short-term XXXX, profit cash is long-time. history. the new U.S. quarterly operating We From our cash a financial and today cash best outside versus Group. -- Both to Afrezza those programs quarter with shape $X.X in $XX.X QX in January been program in revenues a investments. of Tanner down our in launched patients debt patients million to that position, million gross of we program global Additionally, a the in was with million second in paid $XX.X started the our $XX.X due it's Company continue and in in We Deerfield the used day-by-day. a

with or expectations. in our longer, to warrants, line plan in fund what sales, our million, enable December were The sales $X growth mid-XXXX well which happens as us capital efforts. our demand BD is Afrezza with into Our analysts' depending as raise on

highest Our December third is three it's years, highest. the being balance with the in been cash

to trade-offs as shared last wanted Afrezza in This our make expenses to Type earnings you call, to reinforce market. on with continue we care. but manage set we to our We see data believe I've transform will diabetes I II continue what the

our the with We as the as put feedback at hear data and well and was appreciation an Dr. I lots differently. attended with understand dinner had, Kendall. AACE David quickly as the at it people on. ePoster more works for how interactions was it posters can very and we've there you of Afrezza discussion one profile several tell continue from presented how well the multiple customer sessions in to The is we booth, of This positive have traffic works the of the set events

patients space come versus with Afrezza two two data think their onset here We AXC, managing reduction as the better is this AXC you One to and Type studies, the just Drop. here your now quick in injectable to II you shows our additional you by switching a as start These we switching a have ADA insulin a to you to particular the II which in post-prandial of highlight in plus X% overall face nearly baseline the II at Afrezza reduction continue ATTD about next In low was you The can AXCs improvement. in all a better immediate insulin, sugar. the as the showed can an start or out show where in gives provide -- injectable saw study see demand. across will baseline high Afrezza, you coming these challenges at consistent an also drive will outcomes trial, The patient presented trials, ultimately where a well people Type it how very Afrezza next by differentiation at you slide and almost AXC response Afrezza. you improvement studies The differentiate reason Type insulins. injectable you see AXC. space, study in back-to-back show change This

XX in new want we our graduated five we a doctor graduated undoing. who physicians. we've can, XXXX, on old we same in was faster efforts and in the at are years we're base growth habit to consistent launched we was QX Any and by doctor base, Yes, we of our and our product things growth we of remember, that seven as XX who ago changing trained years last the These are Afrezza patients. but currently seen we doing Abzurba the time, and years are to since everything probably business trained training builds So have not on . get over

' growth. can in and And also past type those our we're a we million sales, in as our and year two sales. evolve back number we've with that see nice areas million to type Is net the we WACC, and helping of then, that quarters which you other the unmet IIs QX at demand in look apply $X into focus each in go consistent continued 'XX started quarters, $X.X of We you quarters. you if needs. see nine continue before to look and you When QX is serve When growth SYMPHONY to this see the data, will profile had you you at children on percentages in gross in over we

the So us Company this tell continue in to continue we're to into not anything grow successful going -- we to will Company we a see future. that don't

and entered we have other gross second the we of impacts As walked from positive renegotiated XXXX, some believe to we and we XXXX versus existing we and continue we -- this in was we'd XX% expect range -- contracts away QX. half net this because believed two contracts,. the that In expect QX, to sorry, I'm continue was into it in XX% same will in QX

impacted, QX by reduction. channel Our net inventory growth in was unfortunately,

XX% vouchers, can of to It's in we special last this year-over-year that started important much supply refills Afrezza. didn't inventory. we over was decline. pattern The get between million. growth look Unfortunate net in related we've revenue, 'XX, $XXX,XXX result QX in seen according some that demand So also consistent revenue, reduction chain the net WACC and weeks, anticipated. our to see without when year demand from you we're a had million transparency our a people $X.X a to at The as difference and growth at was XX% here few $X.X showing of the program and you on QX last 'XX because order help and to as would with with is growth know stabilization we GAAP,

highlights underlying growth and you we try that to mask vouchers show business because with business. the we the we without we continue in believe see to look So in the when now, want to vouchers,

Again, next This as Part on without the Number important. our to not in show to the as on the left side, to mix. just vouchers, continue one, is we revenue will reason prescriptions slide can see is in business XX% important you forward. growth. see XX%. XX% to but The you gross cartridge is to net, you SYMPHONY, continues growth. is what's here this you also side close for go right growth, because XX% effect of is grows grow grow and So TRx compound see, base differences reported which

unit the the here when can in percentage excited reporting into year-over-year, XX-units so decline packaging that's to growth of and And of configurations, retention we execute proper continuing continue cartridges important various in as and tell in of being number our of about new a enter working, under-dosing in efficacy. because We know proud dosing you signal lack our think We about the of grow we strategy. you seen we strategy And product. as know the see, XX-U to events of cartridge And challenges XX% shipped of that's really a and one phone I'm efficacy in is execution we're we've and remain dosing proper XX% the main patients. was can you, overall at I of and decline this adverse and the growth. cartridges, around of think see really around QX. because titration. launch is X XXs a part This that to number of a calls, effect

And We good to to we strategy. plans feel turn very of the going it our execution back I'm over place end. the circle and I'll have now, in for some continue about comments Steve. to on at additional the

Steven Binder

XXXX Therapeutics, in filed pleasure is results, achievement Thanks, Xx and consolidated show collaboration be growth quarter this cash to first read recognized you with discussing Mike, our United the our quarter condensed XX-Q, revenue which services revenues contained quarter MD&A a first highlight growth discuss in from used million It's select net consecutive agreements with total over of statements urge in morning. the in $XX.X versus quarterly XX% profit of my XXXX, and and million. a highlights Afrezza first revenue good activities and $XX.X operating in of to and our XXXX, gross which the only and of SEC I'll morning. net financial financial Afrezza

revenue XXXX. with growth our agreements to in quarter to of A let's the of first quarter the favorable for from Mike impacted for First, of of for revenue XXXX. quarter first higher earlier, mix, were United increase gross related net favorably Afrezza hand price. benefited estimating the net of to cartridge Therapeutics Afrezza as left first of XX% of $XX.X the $X.X first of the table, for as XX% first XXXX. recognition quarter was versus net net related than the as sources a corresponding million adjustment by the to the quarter X% Starting gross increase from total The liabilities. volume, and review million to $X.X comes of revenues license showed We both research million was well Afrezza $XX.X XXXX. revenue million, XXX% our revenue and

the impacted channels of XXXX. net versus at of a just by net Rx $X.X Afrezza right revenue Therapeutics shows was addition, quarter gross In left, Afrezza to meet and destocking. to Afrezza $X.X $X.X to The to received free million both net, down the Mike chain adjusted compared showed demand to wholesale first unfavorably Returning million. the $X.X by quarter arrow revenue words, other and the million of United level how due of United million broken quarter first ROS recognition in use you, supply of or and of of the to in million. retail as first due WACC, agreement $XX.X of follows. for In the inventory services research TRx for to the table the no demand. to table gross XXXX Therapeutics goods of is lower agreement as XXXX license the vouchers improved and on collaboration revenues patients

We obligations recognize which from XX, December be license substantially estimated to be performance is expected XXXX. expect date revenue when will the to agreement to completed, the of Therapeutics United our

the XXXX. of largely we we attainment contract agreement, $X.X March were For by based Since payment. obligations, upon United recognize complete $XX inception, the the million which of research Therapeutics performance revenue recognized million XX of upfront

second profit gross consecutive XXXX and that for Afrezza. had quarter was the quarter First a we've

Our yielding significant We goods at a net $X.X remained million, in did million, revenue not write-offs inventory of $X.X sold have of $X increased of quarter first million. by cost flat any gross profit the XXXX. our

low As we to a XXXX, volume in net Afrezza long sales, a gross I quarters continue of profit XXXX. Afrezza expect from of in would inventory to all as our write-offs and grow have report four

result sheet from XXXX. the quarter million paid significant is XX% our been strengthening the XXXX million of have kind, year and interest net in first cash lower the net the balance in interest Group than expense of over first to a and $X.X our last the in in in decrease quarter the $X.X quarter a impact the We Mann expense With XXXX. favorable interest first of of half is

our investments and treasury million key higher as prior cash quarter outstanding at by from cash yielding in of as We in balance Interest from December to with the year, short-term $XX income due this highlights. about million our $XX.X XX, decision due Our investments, as short-term equivalents cash and tripled higher decreased balance securities. investments, to a million the Recapping sheet. balance cash, vest U.S. work our to and short-term our to decreasing expense first from remove debt XX%, reduced XXXX. with primarily interest from ended short-term Deerfield, we $XX.X other well financial

the associated for for carefully to of milestone to advertising cash having expired early in achieving spending statement, direct Also in remain license for formality as Cantor of from the April. S-X cash million continue activities warrants Treprostinil our And early statement collaboration This includes enable Therapeutics SEC million SEC, the regulatory a due XXXX $XX effective notes new ATM our our with $X.X the and in April time with three-year prospective morning maturing. on is with United million This to which $XX.X April, shelf unused. raise B $X.X filed Fitzgerald. Deerfield in of new the receipt we used and consumer our operating expiring Technosphere $XX.X a supplement functional. the we Because agreement quarter. We deliberately net from behind now for filed is to April, we shelf a spend our registration agreement. effective, our with shelf capital yesterday, In limit tranche after the previous to in Afrezza late million our million benefiting paid TV first priorities, ATM the this were lastly, registration

the all interest Thank repayment granted third will assets for let it MannKind turn the in Deerfield which of substantially concluding beginning to We of debt outstanding, over The upon terminate at our to quarter. debt. by have remaining some of and $X the comments. of Deerfield million me matures you Mike back security

Michael Castagna

and new And QX you, continue TV QX can that and about force year different included, on of can and to the with allocation we very coming our see. bridge to commercial prudent restructuring as burn effort. I choices some to to cash we over Thank think going initiatives you due focused into a sales you resources we Steve. you as with made am and the the our be talk about have, the with our hand see, that capital was

on effort and try in QX, we demand to DTC, patient request. enhance to an So, focused

had These up, us upside I over get they traveled evidence impact enable to never the met such didn't start getting our my in had you dinners, go three we've four others, of can maybe as into prescriptions, I of a did to a room, country, XX we continue people people each XX we see X, you While much When events, of I've XX as in get been dinner expected academic from centers. packed as you people XX customers. lot that tell so own used if in, events a another to or time. XX went to everywhere I time. typically I people endocrinologists QX, that's to would can rooms show partners, how have to during educate at places

how data we help to you and may to or learn and seen So exists in, very get that the In excited and Afrezza our continue choose adopt campaign. them QX, have knowledge presented heard the customers we about and we're clinical recently. understand non-branded that educate

starting and throughout This to is the left continue Phase into produce. II this journals. We we side one to This is during multiple as expect the ad really towards first see move behavior now in the many to physicians. of are you'll change QX of diabetes targeted on

also In we unbranded And here. compliance to about addition as but campaign, of direct as Afrezza. are the we mail well, things we have journal, stick when see to to have ads mentions expect, like this, you'll a we talking Afrezza to talk we FDA about due

Air know focus just side, right XXX. and seeing supporting our MannKind in the to really excited thought and are diabetes partnership look was to Conor. diabetes X and taking but Corporation, as Force. forward see running Daly, to The with Afrezza, we our MannKind to Indianapolis Type well, here important Conor race very is Conor who highlight, on driver, not you car On we can the is you started recently a sponsor And the we representing U.S.

about. anticipated Our I milestones half that first the previously talked for

paid. was Therapeutics United from milestone first The

safety XXXX, as to went as a Multiple presenting and second will hoping we are very function lung complete various will start that this design get publications hopefully an expect was We we exception, but our the data very hypoglycemia, as low study in journals We $XX.X build-out that probability. presented quickly to trial the help that pathway a efficacy, of as nail published in be India. half factory. million accepted month milestone patients a finally down focused have over were now second to this for we well on We excited India, year. throughout and and in that of knowing of the get

excited a little mean, our a I for and Additionally, as continues to it up, enrollment we is some the which very that really ADA. been at got to and interim I'm while. enroll generate the study. excitement slow working seeing has post faster ADA, Phil study on share of pick on results it Levin seeing some Phil as to now you're data, we're will late-breaker

We are X. to of hopefully, cohort near and enrollment, shortly completion on cohort program of pediatric the start X our we're about

So program the dosing good the far feel analyzed about patients who've this we've forward. to continuing to-date in of very move come and

for we in our December As had. submitted Brazil, back they've questions to responses some

our enables will product know to studies to feedback to from perspective, Brazil. be continue ship them. transportation stability us the our we've to our certificate from From that factory, await safe shipping it done consistent We we which And GMP throughout receive process. and

of We continue we agreements and unnamed international for United Therapeutics. formulation have an complete work for additional compound pursuit more to

the continue the see as Afrezza, kick patients start patients. to get a about expansion to that I'll we'll see to to we think other here the give believe we the U.S. on pipeline difference outside we we international when Brazil, start build U.S. will in QX, to things in. and markets overall, continue make focus continue to excited updates to So, during as pipeline, to platform also you some Technosphere Very help future, in down to the India in

program opportunities force look as in-license pediatric next fulfill to believe standard pipeline in, And to XX bring for the set our over to well sales capacity. years. as the We diabetes opportunities help we continue will Afrezza for

for say growth over I patience Company. we to New As questions. you expect will transformation the into attending York we continue on we and complete And go forward. there want of that seeing we'll for as we I May Tuesday shareholder thank to look be XX their as everyone open look our out, XX you we meeting at want to up person. our growth to in forward and we quarters to to a growth continue see to nine City, be see will those thank continue and to next past you o'clock in

Operator

from H.C. We'll Wainwright. Livnat Instructions] first question Oren our [Operator take with

Oren Livnat

for thanks guys, taking my Hi question.

bit of are prescription, going in you much what I forward? your from, just QX at lease saw just about leading insurance can about disruption little Thanks. And QX. think seasonal, telling IQVIA in that's we quarter-over-quarter and I and indicators you down assistance, talk also copay, guess, and that's in what a prescriptions how

Michael Castagna

you. Thank question. great Oren,

we last creates the start to of pull in one to industry, softness, squeeze DTC. we an when some decline other and you usually QX, different within across into try was in that industry, go the last look So that were We December fill know than high-deductible hoping amongst That's in of and in Outside out but you'll March. the see showed obviously of I as there overcome to impact some and you we years. to diabetes, companies. no about health specifically QX think if diabetes three an couple plans XX% February people with in TRxs, decline and the the definitely January typically where look across QX

decline, meds -- are to up maybe from you, think I have continuing delaying overstocked see that and their really the pay plans, tell medicines colleagues trying and people stretching filling month. to change they high the my by supply or as out I'll in a use deductible are industry in air, is unfortunately their We unfortunately, safety their is

at utilization, and in indicators April our copay as card right we look card copay at back our are to of March prescription our look saw recovery So direction nothing and all we our unusual positive in see a We trends business. the continue point. through this downloads,

Oren Livnat

Alright. And cash a little bit.

up, stocked So at pretty guys historically obviously are least well you speaking.

burn, DTC says $XX million Therapeutics obviously it hefty Excluding I that milestone, spend. think that was including about my a math United

term. bigger expect you'd as this like, I to should to go where growing, QX product? overall the But as but to I much business and I picture. realistically the steadily are scripts continue should there slowly guess guess, in And not way obviously we long is beyond? any I have magnitude and grow right mean of no So size doubt they around spending

Michael Castagna

comments there's on that make think I Yeah, I'll Oren. two

is, The cash first flow. cash,

yes, So you sales with see able including our DTC $X.X there's holding restructuring our force can a million, were offset we to of expense $XX and expenses and tightly. in the some the of million

as expect So first you we expect second and of think $XX.X half from $XX.X about in XXXX. United the next million another we XX million months, half in the Therapeutics the

Afrezza decisions quarter-over-quarter So we'll there's the trend, we the is. trend will expect $XX coming get drive beyond able way the mid-XXXX. we inflection some of with is the to we depending to which the we've but we be United earlier, we a laid million I'll continue continue expect burn, financing put And it's more there seen, important, expectations, and place, we trends consistent you a our believe and the as about, is, what And cash. in and be to this to But point, we'll there growth cash reason an overall asked to what our that just guidance question think in this give will and that manage with further milestones, I and just year, Afrezza rest on in at stated out when to continue serve monitor of want really believe just plans to only I cash it's point we Company, is there. see is, at the to think I for revenue Therapeutics the

that our our some have that the do we we base. on where obviously And expense choices that's late. I optionality Ped we study around flexibility we or early keep and think So I managing always think have start around,

meaningful on start And some to certain point in trends depending burn on cash if sales but but don't a we can future. faster, are is to going. really are, this have some to our the think we flexibility real have we to the some how grow driver of that's do point, invest I very We focus, continue see type things, at at becoming we growth

Oren Livnat

steady. opportunity? and that Can plan where timing of this incremental look and what mentioned should Ped ultimately cohorts, this these development just with on help just you is program becoming you we is And an understand going this us for what kind actual exactly

Michael Castagna

Yeah.

first phase we'd for III as a probably us couldn't took the overall, started, good which little we Phase we, like, bad was the wanted time started us and when to. a we than longer company when we So because have unfortunately at

So through the one works days. think the in by better PK single a about cohorts cohort, study group, three, dosing when so this think you took longer each that little timing a fact for age I it's out But followed Company. overall the its for XX

year-olds. XX And three is cohort so cohort X four year-olds to was seven X to XX to XX is year-olds, cohort and X

So dosing adults. kids is to with of down Afrezza that to consistent that absorption prove we keep have in

news it's need patients use think what who've them a getting many I insulin a one drug often and of a the how so X-unit is cartridge three they and from recognize And doctors are doctors day, it's basically two-unit because dosing so accurately good not units is, I remind used never we the because with hear a thing lot. cartridge, you're they

And so in dosing eight and we to so say to see working we in and to beyond. four down up can XX units going fine the and is XX fact the eight year-olds, four far safely with kids, kids

we The accelerate a eight that then dosing once next our for in cohort three, the And opened, good look to a we trial at protocol is right head, we'll trial the which not. FDA that's down open enrollment. years-old. cohort appropriate middle continue to will the III get Phase so go about far we're really design. So should feel three look or And is up, submit of will what what we the cartridge now, to like Phase design III four-unit

come trial, want parents And have you And then dosing so, and Afrezza, injectable into to study insulin for one get be multi-month is and switch challenges example, off of you against for the on over if can't with that's patients easy process our to on MDI, to a and to for an you not pump. you do. your many go these pump, to come

So that's longer the lead expect and to X and cohort at up, faster go lot take sites enrollment. we -- to a have we're open And little then XX X we X. than IRBs a basically but cohorts some

will so, the out the just talking And cusp with today the and III X, the large to start up opening program to literally and can move we which we're closed chairman get cohort actually where hopefully on Phase of moving this study. of study

Oren Livnat

right, All thanks.

Operator

take from we'll Sarraf with SVB question Leerink. next our Pasha And

Conference Call Participants

is this [indiscernible] for in morning, good Pasha. sitting Hi,

So two quick questions.

First did DTC prescriber of And look you the you of in your update can then an you. base? all, on number like in growth terms in across demand? kind did if what the give what of see terms Thank footprint market evenly two, campaign of

Michael Castagna

looks sorry, I'm what base? in prescriber like the

Conference Call Participants

prescriber base What like your the looked from over growth the quarter?

Michael Castagna

Okay, great.

Sorry.

restatement, DTC, DTC be So able actually we're quarter, get had to that in that start we waiting tomorrow. area. the on district, we restatement, the the once so to by data SYMPHONY analyze for get waiting, I which issues think some we're by and And we'll because

for a campaign you XX entire the two, and are kept flight take weeks and and So on for there we markets in example, in. then flight other where markets you then three you throughout break

terms investment the refills of demand see so drive writers, new prescriptions, what and in of happened et NBRx, we'll to be And cetera. level market able total by to

big you March DTC reasons card analytics one to happens, card stopped copay downloads It's those stop copay to what we A, the redemption, place. if it at allow you're think give the time of anticipate take on time of that see end rate, a because to it want and was was going huge -- return to you to will investment the when continue burn So you some a that at that's don't measure, don't to also investment. but

the again it that for you once of we to So we which we're and need but measuring data in-house, restatement we is coming give have updates wait will SYMPHONY, tomorrow.

we that was, through writing target up the at actually share, the to who on Afrezza. one looking of growth, we're above X% details was the a interesting X% April are I On doctors little market prescriber

list the So over when last months year. had little of you I a look think, at this looked, X,XXX I prescribers, four and our first we through target

our see that were And our X% docs who to within written have continuing growing almost and share market saw DTC there campaign. month-over-month the that and on target on you so prescribers. weren't that during were then growth was But territories some we're list never that

writers some as forward. those there we that list So to seeing target grow, business starting and go to add and new we'll our are you're

quarter writing So that some we writers growing that's kind looking and go these show start I to see answers more. start things. new to before let want QX, but of your existing to but of at we'll in hope types we're another writers just data we question, continuing

Conference Call Participants

Thank Alright. you.

Operator

question next our take Research. Dushyanth We'll from Cap Anita Zacks Small with

Anita Dushyanth

my morning, for and questions. good taking thanks Hi,

on others for couple mentioned throw a you probably your turned weeks. Could some Just you on XX add couple have just you DTC? markets just here. you the color know a strategy the And that and for on of I for it

would SYMPHONY, you you after data of how plan the how on sort change -- from would the to XX it that keep So markets, you or that? for get analysis would

Michael Castagna

expected I that think in be that we're additional we the until DTC trend always opportunities. we come running we investment trend spend cash evaluate internally, can going we above would data we I to really a that that had our start expect have But I'm prudent budget see and the gotten above with and think against to internally, Company allocation.

do we back return the speculate ad, on will want a all to things on, are we those I think TV new do table. So it to I don't need

did really spend we I we it's first to measuring were. think continue rates we at before the what

we've the XX, basically and sub-markets And heard end QX, we doctors, much tell weeks you just two about every our positive feedback we had QX, timeframe ran force, throughout. the to campaign all XX for it for going break TV general that from patients. our national of then took a or we way from clarify, the XX And depending from we and in very full during sales market, ran I a that through but pretty weeks, about at can kept so three on

inside to point, that how good that came many believe. at just So of within with exception a investment our staffed North one came Carolina, writers white in of how the our we in wasn't it's we many position actually not cover, see fully it We're writers don't space this want targets reps. I

only we so, on force. have sales And the one right now opening

about as just We QX, think training people Phase quarter the up. So we XX our first had II openings in staffed about we're class. and now had fully

filled focus in about. very and with got team. of and the energy, full positions We have been So from three two us front execution excited we're quarters now a manager a force sales

plus give us the up I trend And hopefully, nice, continue look we for DTC opening as the three a next think quarters. so, two, to doors, that should

Anita Dushyanth

to trial And before was, we you. expecting of year? large are other India the thank the begin Great, question in end the

Michael Castagna

to will and Yes. be insulin type few us, that the to focus We trials, We're patients, II. We are was hundred it of insulin way we dosing coming be to or dosing make literally think we discussing to Phil who Levin be and prescribers over a we're Indian beauty to get our believe that's study in very trying in a will able know dose to repeat last titrating wasn't trial, because our in that seven pivotal end and not to design the had know about design study say then up they good study to far, the mistakes have we trial it trying that and because weeks in six, feel ago could proper even docs period. those we with and we very way with took at of on we'd Indian execution. the effective we and our particular a so titrate that stop effective, titration II, a speak. We're that's big I titration, it for from dosing better it that in wish will And as type Cipla that the insulin. the naive partner easy to standardize for to to proper to patients do titrate the probably years original switching done is out XX

ready trial. be will We start that to

Anita Dushyanth

Okay, you. thank

Michael Castagna

Thank you.

Operator

Bert our And Hazlett we'll from question next BTIG. take with

Bert Hazlett

taking Thank looks very I regarding surrounding Thank In question. Levin intriguing. you have Mike, the could strategy you. two. the Phil actually publications study Again, general Afrezza data? overall terms, discuss for the you

for could drove what characteristics just you discuss oral about If what that? general maybe slot presentation the the

Michael Castagna

Yeah, I only late-breaker as -- at the posters. are ADA I think late-breaker think will I be recall

fixed-dose at titration So with accepted was the there range much first baseline are and patient, as timing as end per sure along I'm looking late-breakers saw AXC but rate, range. average range, with on Bert. I could we we AXC would I and time I titration timing baseline like orals, using think was lead as of wrong percent and time and reduction, presentation, a what see for be an But fixed-dose that, AXC, a treatment can oral not what dose the

think last the key people did I which about just study and this last everyone about. when STAT last a study and -- learned week. most excited we talk the talking about STAT to -- continue -- night unfortunately doctor Remember, still, all we things year, that are remain met I I just

head then our development questions, studies to -- studies people even build saw results they to we works. see they data to are actually always the And data program. multiple know kind there, Afrezza we show have point it as start still how small better head of we're get you we of and to we in still is up, the we So these pool showing you building now ask but than that out know learning

that really we hear when strategy, all lots are route, These you drug? we the we really do objections think hypoglycemia, that we effective highlight really think are that nail down how surprisingly, scientific publication articles lungs six, probably data trying of aware hear So that back on from the well the less credibility three known ago have MannKind. important on and is those that's seven you the to of to throughout news the part, weren't good have are and titrate think years customers. Do these delivery thought other or there. it's the safe about I you of the out the data the bringing leaders years even people ago. are world our really to And think investigators agenda And I is things

hopefully So highlighted traditionally committees think continue the we're and at change, with set. CGM continue to highlighted. stage conferences, Afrezza well-known what getting think say would about guidelines and I everything of about to data with I really familiar people, when the and we has familiar Company, here, speaking that's artificial really Afrezza noise, elevate that's going get been the and And and to we pancreas the

seeing someone's years, used a they're hear never go that one aren't diabetes up. sugar because respond hour dropped People you've CGM used people, the sugar as the Just the on That's that's and had to one hour, down mind comfort. shift right, is to we that is first things will sugars And we benefit, to practiced XX fund and proper at first in an get on experience that's Afrezza. to that to example, their sure we're control, to building That good has out small them if looking data in is that And seen seeing for patients my understand. people go us maintaining for continue quickly. their of you've it's at right. never ways at XX, to so real-time who get articulate providers look and this and type first but to that niche a continue areas there trials make of scary control,

that So answers I hope Bert? there question your

Operator

a he has take from the follow-up. removed We'll Looks like queue. himself

Michael Castagna

Okay.

Operator

from to with go our We'll next question, Oren H.C. Livnat follow-up Wainwright.

Oren Livnat

Why with guys reductions. not any successes that regards higher and isn't through Obviously, higher for really some good scale. wondering about Is Yeah, a Why feedback follow-up. broken the have share. let's the these at that breakthrough if and certain you same, say, X% to than much the the a negative with? just for Thanks. roadblock? glucose Thanks that, And that huge not earlier is on control hearing they're AXC you've at awareness docs docs anecdotally from you the aren't you product? with experiences patients hearing that Are challenge seeing them mentioned I'm having already insurance I'm same least their X%?

Michael Castagna

question. great Oren,

statement. that clarify Let me

most rapid-acting offices they've see number their do and the of doctors' they we patients current the is, Remember, share at XX% XX% stations we what base look So and analogs been overall new. of of Afrezza. XX%, in maybe market are seeing

patient to patient, add for generally on fighting and and/or it. the doctors they new always just you're change treatments, an So existing we know don't

that you when so all take continue share Afrezza, market. prescribers it, X,XXX of analogs, grow rapid-acting for I'll to think see And simplicity, in we including you rough penetration call about, the

just to don't I front X.XX% months. think of from I the X.X% went we right So it XX have in in but me, last

in we're growth amongst share prescribers. So continuing see to X,XXX that

some for have and been of prescribing recently may three those prescribers started two, may prescribing years. remember, some just Now have

that as higher, at I'm share and X% build sure prescribers build. builds that or X%, will range. it continue base NBRx if in probably to a be lot the And we'd patients of NRx, So looked X%, I see

and XX% X% to on to where to have as So share, forward. we your market use other because they continue that other and type that market they expect just doctors IIs go But have -- we are we comment, share grow appropriate. XX% we

they're is or their And see you what uptake why remain see telling ask Texas do optimistic a you compound to a prescribers, I docs base York and to three so of the ground then see it the in New continue starting micro to see it, I'll pick certain because me peers that where is, on you educating we to across markets. see doctors then very reps, do certain see you effect and who have and and and of great are excited, market, friends use and starting when markets, you then people in the adopt swell we start two patients

to, other a probably see that's the getting so in but penetration of times, markets, to just are patients. continuing half of of get we're trying we're half is our and And started lot prescribers what to

to tweak using change and when a to X three there do unfortunately. why and ask you have a this, drug. and our been high have CGM we do XXX% the is but people that's get process, we XX satisfied We And the months it's we think is that where AXC is share to shape control, is hard. lose that to think where pump people a it's that starting we love It's will not going, multi-year not come and doctors. of really everybody, documented shouldn't get intensification So I numerous people, delay -- think be market we'll to to a have is it's pounds, back we mean, few problem really and love condition I data a diabetes that are we up years tell with. one we times been that wait better for six in

I don't don't another comment [indiscernible]. is, recently I'll who and one that guess, think against backwards any the I change and launched go we're and switch And and When I'll all just some of to say, on but write from selection. working far to and gas it drug, things a we're strategies that they it's just to so dosing it's are XX rates analog that's patients. -- while car an a just trying reimbursement, the years we like that's think our to we our Those we that's packet to they optimistic next titration, in X we iPhone, make an to to just takes held than higher keep I to and -- the very started get flip to in advisory patients beauty We and a for streamline, see dropout coming there, continue board business do populations don't get are the trying Tesla and hospital doing. almost whether last remain sharing get or perceived that what factors, phone understand. continue never there, data see competition need other major analyzed paradigm building doctors when we'll drugs a it's you closing

And up. that patients? your start So I last hear business. grow the if is, continue to to starting on starting over new always refills the the are and you're and that patients and refills to think I a as our quarter, build business new and to that's of at build look we build you misconceptions we losing patients products you base base lot see gather we come in, think lose one We of

go doctor XX And position over I as excuse, us good on as about can Despite and stable, they're noise us time will really not just I right experience, board with we our to throughout pricing, payers met all slowing doctors and if seemed priced so well, good but now. feel probably year, patient down insulin the really not enhance position one-on-ones, experience. quarter, talk getting payers slowing a down, we that's what's payers and premium last this what's that not but are the it's not, and the all between use our product. -- formulary advisory that good them the we

Oren Livnat

All right. Thanks.

Operator

with Hazlett And BTIG. we'll go Bert back to

Bert Hazlett

Sorry, problems. I phone some had

Just comments asking, there in there cannabinoids? but some understand, expanding movement particular, been Life to has early regarding have may with the call, made on really collaboration the any would any thinking Receptor on the you And additional the progress like or Sciences in is pipeline? to with Technosphere

Michael Castagna

Bert. question, great No, Yeah.

accelerate maximize we what's update over we've I Afrezza, strategic for Company, earnings lots do five time. to get years, through the that international, over growth to terms really have we and in on three are where there's drive how do our review our QX of ideas see the value, we we we how for next important had when to of an call, shareholder includes ourselves I think going by should the then pipeline. do

probably but out the Sciences, I that in executed, been programs, talent as going. is about the is as well on We with Life this very where quarter then the really meeting to accelerate opportunity. pipeline those in major QX rolls focus the development terms Company to you'll we've particular partnerships. and a we've the them more figure think, about market we've hear of into one that And excited in is some so new potential out off, Receptor results. bringing On Some focus remain held as pipeline, program --

is you that. we and cross look Canada, look our rest the can world, like, Epidiolex exception manufacturer -- in the exported the and in $XX of them, potentially would as a of space should which the Receptor like a at can cannabinoid we can get So, for real million. with and and have the product U.S. we we Pharma, I can FDA where launch with product in well more there we And believe while real stepping with cannabinoid example, U.S. to market, be CBD, that you discussion space, be saw an the combination of state little But and kind QX is that the which as we U.S. of a think know the of sales there we focus GW lines over Canada, government in you that that the just should their FTKP prescription-based in ratio in

and identify Receptor real prescription hint those and excited possible. gives we're continue that you to I is as some a the this to So opportunities it to in be along on to partner with market think that U.S. so side, as move the going quickly

So I okay. don't know, anything I should -- else

some there, I that So gives hope clarity Bert. you

Bert Hazlett

Thank movements a in visibility you. XXXX, get something little specifically, we Should those that's with any Receptor, of that on -- further or out? is in

Michael Castagna

more our to really so plus we're in drugs multi-year one see is mean of the and think capital class to space on that unmet one three not together, work see need that in that in they you'll is royalties now it's it been the that's benefit we have terms And with and and that from our more be growth a is focus mode. And will here I that year we'll we how a of some an evolve, agreement. place, you'll for particular that. they have get patients to I and now and think more to exciting faster, the shareholders drive that plus think X.X. updates moving focused know a are this I that survival Receptors, in I this get one continue from mode see I a talking It's we them. think can one one partnership place, to team milestones

Bert Hazlett

thank you. Terrific,

Operator

that conference I today's question-and-answer additional to concludes remarks. or turn At closing any time. back this the you for And session. will

Michael Castagna

your everyone the you thank dialing international you so Coast East Okay, for today. the Coast as Appreciate as early on time markets. well and West in

we to pipeline continued move the international will expansion. of We as you Afrezza, hopefully in some continue forward demonstrate give growth clarity on

York look May, shareholders take hope to New forward So and in again. there you week Thank there. City next we'll questions seeing our in additional

Operator

call. now this concludes participation, you you Thank And may your today's disconnect. for

MannKind (MNKD) 7 May 192019 Q1 Earnings call transcript