MannKind Corporation has entered into a strategic financing agreement worth up to $500 million with funds managed by Blackstone, providing the inhaled therapeutics company with flexible, long-term capital to advance its growth initiatives. The non-dilutive funding strengthens MannKind's capital structure as it prepares for potential product launches and pipeline expansion.
Financing Structure and Terms
The senior secured credit facility consists of three components: a $75 million initial term loan funded at closing, a $125 million delayed draw term loan (DDTL) available over the next 24 months subject to customary drawdown conditions, and an additional $300 million uncommitted DDTL available at the mutual consent of both parties.
The facility bears interest at a calculated SOFR variable rate plus 4.75%, which may increase by 25 basis points if a total leverage ratio is exceeded. The agreement matures in August 2030 and does not require scheduled amortization payments during the term.
Strategic Growth Applications
"This strategic financing significantly increases our operating flexibility and provides us substantial access to non-dilutive capital on favorable terms, complementing our strong cash position," said Michael Castagna, PharmD, Chief Executive Officer of MannKind Corporation. The funding will support multiple growth initiatives including commercial team expansion in preparation for the anticipated launch of the pediatric indication for Afrezza, if approved, continued pipeline advancement, potential business development opportunities, and general corporate purposes.
Jonathan Brayman, Managing Director at Blackstone Credit & Insurance, emphasized the partnership's strategic value: "MannKind has a strong commercial track record, diversified product portfolio, and exceptional management team. This strategic financing provides flexible capital to support MannKind's growth initiatives while positioning Blackstone as a long-term partner to the company."
Company Focus and Technology Platform
MannKind Corporation focuses on developing and commercializing innovative inhaled therapeutic products and devices to address serious unmet medical needs for patients with endocrine and orphan lung diseases. The company targets conditions including diabetes, nontuberculous mycobacterial (NTM) lung disease, pulmonary fibrosis, and pulmonary hypertension.
The company's signature technologies center on dry-powder formulations and inhalation devices that offer rapid and convenient delivery of medicines to the deep lung, where they can exert local effects or enter systemic circulation depending on the target indication. This approach leverages the company's formulation capabilities and device engineering expertise to reduce disease burden for patients.
Partnership and Future Outlook
Blackstone brings significant resources to the partnership, with $1.2 trillion in assets under management across global investment strategies including life sciences. The firm's value creation platform and deep bench of life sciences expertise are expected to support MannKind's commercialization efforts and both organic and inorganic pipeline development.
The financing positions MannKind to accelerate its next phase of growth and innovation while maintaining operational flexibility. The company's preparation for the potential pediatric Afrezza launch represents a key near-term catalyst, pending regulatory approval.
