STOCK SALE FUNDS PROJECT LOCAL COMPANY DEVELOPING INSULIN PRODUCT.Byline: Susan Abram Staff Writer VALENCIA - A local biopharmaceutical company is closer to developing a pulmonary insulin product that already is in trial use in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe. Mannkind Corp., a private company based in Valencia, has raised $50 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). through the sale of 980,392 shares of a newly created preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to select institutional and private investors. The company focuses on developing and commercializing therapeutics for diseases such as diabetes and cancer, plus inflammatory and autoimmune diseases Autoimmune diseases A group of diseases, like rheumatoid arthritis and systemic lupus erythematosus, in which immune cells turn on the body, attacking various tissues and organs. Mentioned in: Complement Deficiencies, Premature Menopause , according to its Web site. Company officials issued a press release this week, but were not available Friday for further comment. ``This financing allows us to continue the development of our Technosphere Insulin product for the treatment of Type 2 diabetes type 2 diabetes n. See diabetes mellitus. , which is currently in ... trials in the U.S. and Europe,'' Hakan Edstrom, Mannkind's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said in a prepared statement. ``We believe that our product, if approved, will be the first pulmonary insulin system to produce a profile of insulin levels in the bloodstream that approximates the first-phase insulin release spike normally seen in healthy individuals following the beginning of a meal.'' According to the company, the preferred stock is convertible into 9,803,920 shares of Mannkind common stock at a price of $5.10 per share, subject to certain adjustments and anti-dilution provisions. No mandatory dividends are payable on the stock. In addition, the shares of stock sold in the offering have not been registered under the Securities Act and cannot be offered or sold in the United States. Mannkind's insulin system is based on the company's Technosphere technology, which ``is being developed with the goal of providing a wide range of alternatives for non-invasive pulmonary drug delivery of therapeutic agents that currently require invasive administration,'' according to the company's statement. Its emphasis is based on manipulations of the immune system immune system Cells, cell products, organs, and structures of the body involved in the detection and destruction of foreign invaders, such as bacteria, viruses, and cancer cells. Immunity is based on the system's ability to launch a defense against such invaders. to develop agents to treat cancer as well as a variety of inflammatory and autoimmune diseases. ``Approximating this first-phase insulin release spike may allow patients to achieve greater control over their glucose levels, which we expect may reduce exhaustion of the insulin-secreting cells in the pancreas and possibly also reduce the degree of insulin resistance Insulin Resistance Definition Insulin resistance is not a disease as such but rather a state or condition in which a person's body tissues have a lowered level of response to insulin, a hormone secreted by the pancreas that helps to regulate the level ,'' Edstrom said. The insulin research, development and manufacturing is conducted at Mannkind's Danbury, Conn., office. Susan Abram, (661) 257-5257 susan.abram(at)dailynews.com |
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