MannKind Corp. on Wednesday announced it received a $4.9 million loan from JPMorgan Chase Bank as part of the federal CARES Act Paycheck Protection Program.
The Westlake Village biotech company said the funds will pay to retain employees, maintain payroll and make lease, mortgage interest and utility payments amid the coronavirus pandemic. All or a portion of the loan may be forgiven if MannKind meets certain criteria under the CARES Act, including ensuring funds go to payroll costs and rent payments.
MannKind also announced staff members making more than $100,000 annually will see a 20 percent pay reduction effective April 27, including executive officers.
“MannKind expects to maintain this reduction for at least 10 weeks. The company does not intend to reduce pay for employees whose payroll costs are below $100,000,” the company said in a statement.
Last month, the company made headlines announcing a collaboration with Immix Biopharma Inc. in Los Angeles to develop a dry powder treatment for acute respiratory distress syndrome, a complication of COVID-19. MannKind’s flagship product Afrezza is designed to treat diabetes in adults and uses an inhalable insulin powder.
Shares of MannKind (MNKD) closed Wednesday unchanged at $1.26 on the Nasdaq.