Aneesh

Aneesh, on behalf of Gregory Renza from Truist Securities, asked CFO Chris Prentiss about the expected evolution of gross and operating margins in 2026, considering the integration of FUROSCIX and the potential pediatric launch of Afrezza. He also asked CEO Michael Castagna to elaborate on how MannKind leverages FDKP technology to improve the delivery, efficacy, and tolerability of dry powders, and its potential implications for IPF, drawing parallels from PAH and PH-ILD.

Answer

CFO Chris Prentiss explained that gross margins would see a slight decline in 2026 due to the On-body Infusor's lower margin, but anticipate significant improvement in 2027 and beyond with the FUROSCIX auto-injector launch. He also noted the non-cash impact of intangible asset amortization on COGS. CEO Michael Castagna detailed FDKP's critical role in deep and consistent lung penetration, emphasizing its importance in protecting and delivering drug molecules across Afrezza, inhaled bumetanide, and MNKD-201 (nintedanib DPI), forming a key technological moat for MannKind.