FIRM IN NASDAQ BIOTECH INDEX LOCAL MANNKIND CORP. CHOSEN FOR LISTING.

Byline: Staff and Wire Services

VALENCIA - A local biomedical firm working on an insulin inhaler for diabetics has been selected to join a key biotechnology market index, officials said Tuesday.

MannKind Corp. has been selected for inclusion in the Nasdaq Biotechnology Index, which tracks the performance of the pharmaceutical and biotechnology market sectors.

``MannKind's inclusion in the Nasdaq Biotechnology Index increases our visibility to the investment community,'' Hakan Edstrom, the firm's president and chief operating officer, said in a printed statement. ``It is an honor and testament to our corporate and clinical achievements.''

The Valencia-based company completed an initial public offering of its common stock in August and has begun the third and final clinical trial in Europe with its lead product, the Technosphere insulin system.

The experimental product aims to replace insulin injections by needle with an inhaler system delivering a dry-powder insulin formula into the lungs.

By midyear, Mannkind also plans to initiate Phase 3 trials in the United States to assess the long-term safety of the Technosphere system in both type 1 and type 2 diabetes.

In the quarter that ended March 31, Mannkind reported losses of $22.2 million due to higher research spending for advanced clinical trials. Operating expenses rose to $22.6 million over the three months - a $6 million increase from the same period a year earlier.

Research and development expenses accounted for $5.9 million of the increase, as expanded clinical trials pushed spending to $18.7 million.

The Nasdaq Biotech Index includes companies classified under the Financial Times Stock Exchange's global system as either biotechnology or pharmaceutical. All securities in the index are listed on the Nasdaq National Market and must meet minimum requirements on market value, average daily trading volume, seasoning as a public company and some other criteria.