Anish

Anish asked 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 requested more details on how MannKind leverages FDKP to enhance dry powder delivery, efficacy, and tolerability, and its relevance to IPF.

Answer

Chris Prentiss (CFO) explained that FUROSCIX's On-body Infusor has a slightly lower gross margin than Afrezza, which will cause a slight decline in overall gross margin in 2026, but expects significant improvement with the auto-injector launch in 2027. He also noted the impact of non-cash amortization of intangible assets on COGS. Michael Castagna (CEO) detailed FDKP's critical role in MannKind's technology, enabling deep and consistent lung penetration for various dry powder formulations, including Afrezza, bumetanide, and nintedanib, by protecting and delivering the drug effectively.