Positive clinical trial results for MannKind Corp’s first product have made the company eligible for a second stage of financing from its new supporter, the company announced Friday.
Affiliates of Deerfield Management Co. can now provide another $40 million of financing to the Valencia biotech, which hopes to get U.S. regulatory approval within the next several months to market its Afrezza inhaled insulin treatment.
MannKind on Wednesday said that two clinical trials of its Afrezza inhaler met its goals helping diabetics control their condition. Deerfield, a New York foundation-backed, heath care-focused investment management firm, in July signed an agreement to purchase up to $160 million in MannKind convertible notes in four stages as certain milestones were met.
Shares on Friday closed down 87 cents, or 13 percent, to $5.77 on the Nasdaq.