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MannKind prepares for layoffs

Posted: February 15, 2011 1:55 a.m.
Updated: February 15, 2011 1:55 a.m.
 

The biomedical company MannKind Corp. plans to lay off 26 employees from its Valencia site, officials said Monday.
Officials expect to lay off 179 workers, about 40 percent of its work force.

The brunt of the cuts are being made at the company’s Connecticut manufacturing plant, where 131 employees are being let go.

The layoffs are necessary to free up cash to pay for additional clinical trials requested by the Food and Drug Administration for its inhaled insulin, Afrezza, CEO Matt Pfeffer said. The FDA’s request for more trials will likely delay production of Afrezza for up to 18 months, he said.

“It’s unfortunate,” Pfeffer said. “We lost a lot of good people but we hope we can hire some of them again someday.”

All of the layoffs will become effective by mid-April. Until then, all employees are on paid leave and will receive a severance package once they are let go, Pfeffer said.

Meanwhile, the company reported a $38.3 million loss in the fourth quarter. Its shares were down 32 cents, or 8 percent, to $3.47 in trading Monday.

MannKind is one of the more prominent companies based in Santa Clarita, which has a growing biomedical industry.

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