MANNKIND UNVEILS IPO PLAN $70 MILLION EXPECTED TO BE RAISED BY ACTION.

Byline: Evan Pondel Staff Writer

VALENCIA - Insulin-inhalant developer MannKind Corp. announced Wednesday an initial public offering to raise at least $70 million to further the company's product development.

Underwriters plan to issue 5.5 million shares with an estimated price range of $13 to $15 a share.

MannKind will use about $50 million to develop its Technosphere Insulin product, a diabetes treatment that is currently in the second phase of three clinical trials, according to documents filed with the Securities and Exchange Commission.

Though MannKind's priority is receiving approval for its insulin inhalant, the company also plans to develop therapeutic products for cancer, inflammatory and autoimmune diseases.

After the offering, MannKind's principal stockholders will include Chairman and Chief Executive Officer Alfred E. Mann, with a 50.4 percent stake, and Biomed Partners LLC, with a 7.6 percent stake.

Mann has developed a reputation as a marketing maverick in the medical device arena. Several companies have taken notice, including Boston Scientific Corp., which acquired Mann's Advanced Bionics Corp. for $740 million in June. In 2001, Mann's insulin pump manufacturer, MiniMed Inc., was acquired by Minnesota-based Medtronic Inc. for more than $3 billion.

``Al knows how to market products really well,'' said David Kliff, president and founder of the Chicago-based Diabetic Investor. ``With MiniMed, he was in the right place at the right time. The company's insulin pump wasn't necessarily better than others on the market.''

Mann's marketing prowess may prove imperative for MannKind Corp. The Valencia-based company has reported consistent losses in the last three years. For the three months ended March 31, MannKind recorded a net loss of $17.1 million, compared with a net loss of $20.4 million in the same period a year ago, said the SEC filing.

The filing also notes the company has ``a history of operating losses'' and expects ``to continue to incur losses.''

MannKind has never been profitable, and, as of March 31, had an accumulated a deficit of $383.4 million, the filing said.

MannKind's product portfolio is also in direct competition with heavyweights like Pfizer. The company is in the third phase of clinical trials for Exubera, an inhaled dry-powder insulin. Kliff said if Exubera is able to receive approval, MannKind will face significant competition.

``I'm sure Al has a great company, and, if inhaled insulin becomes a reality, it would be a real popular product. But it's not as simple as it sounds,'' said Kliff, who is also a diabetic. ``A lot of people are working on these products. And Al may be behind a lot of players. I wish him luck. He's going to need a lot of it.''

Other analysts say there is steady growth in the health care sector. ``It certainly has a favorable following on Wall Street,'' said Christopher Cooley, analyst with FTN Midwest Research. ``Success for new company depends on what the company's profile is and what growth looks like.''

The company plans to list its common stock on the Nasdaq National Market under the symbol MNKD.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com