MannKind Announces CFO Transition

[sla55]

investors.mannkindcorp.com/news-releases/news-release-details/mannkind-announces-cfo-transition

MannKind Announces CFO Transition

Steven B. Binder announces planned retirement and is appointed Executive Vice President, Special Projects, effective April 22, 2024, through December 31, 2024
Christopher Prentiss appointed Chief Financial Officer, effective April 22, 2024
DANBURY, Conn. and WESTLAKE VILLAGE, Calif., March 26, 2024 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq: MNKD), a company focused on the development and commercialization of inhaled therapeutic products and devices for patients with endocrine and orphan lung diseases, announced today that Steven B. Binder will retire from his position as Chief Financial Officer, effective April 22, 2024. Mr. Binder plans to remain at MannKind through the end of the year as Executive Vice President, Special Projects.

Christopher Prentiss has been appointed as Chief Financial Officer, effective April 22, 2024. Mr. Prentiss will be a member of MannKind’s executive leadership team and will report to Michael Castagna, Chief Executive Officer. “We are excited to have Chris join us at such a pivotal time as our new CFO,” said Michael Castagna, PharmD., Chief Executive Officer for MannKind Corporation. “Chris will be responsible for ensuring we maintain our fiscal discipline as we continue to deleverage the balance sheet and invest behind our growth opportunities in the coming years.”

“At the same time, we are deeply grateful for the vision, dedication, and leadership Steve has provided our company during his tenure at MannKind,” continued Castagna. “Steve’s fiscal stewardship has guided our recapitalization, helped us record nearly $200 million total revenue last year, helped us achieve profitability in recent quarters and bolstered the balance sheet with over $300 million in cash and investments at the end of 2023. We are pleased that Steve will remain with MannKind for the rest of 2024, allowing for an optimal transition with Chris.”

“I look forward to working with Chris and remain totally committed to MannKind’s continued success,” said Steve Binder, Chief Financial Officer. “Together, we plan to help the leadership team deliver on our 2024 milestones, build shareholder value and achieve our MannKind mission.”

Chris has over 20 years of experience serving in financial leadership positions within the biopharma industry in both private and public companies. Since September 2022, Mr. Prentiss has served as Chief Financial Officer of ADARx Pharmaceuticals, Inc., a privately held clinical-stage biotechnology company, where he helped to raise nearly $250 million in funding. Between April 2015 and November 2021, he held a series of finance positions of increasing responsibility at the commercial-stage biotech company Adamas Pharmaceuticals, Inc., culminating in Chief Financial Officer. His responsibilities at Adamas included finance, accounting, investor relations, information technology and facilities. During his tenure, the company launched GOCOVRI® (in 2018) as well as acquired OSMOLEX® ER. At the time Adamas was acquired by Supernus Pharmaceuticals, Inc. in 2021, it had an annual revenue run rate of approximately $100 million.

His earlier career also included senior financial roles at InterMune, Inc., Dynavax Technologies Corporation and MannKind. Mr. Prentiss began his career in the assurance practice at KPMG LLP. A licensed CPA (inactive) in California, he earned his Bachelor of Science degree in Accounting from Loyola Marymount University and an MBA from Indiana University’s Kelley School of Business.

[cretin11]

That's a significant retirement. Sometimes these can be a good thing, though don't know if Binder is one we should be glad to see retiring. He's been a good one, hopefully Prentiss is as well.

[sla55]

Form 8-K:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b)(c)
Effective April 22, 2024 (the “Effective Date”), Steven B. Binder is retiring as the Chief Financial Officer and principal accounting officer of MannKind Corporation (the “Company”). On March 25, 2024, the Company’s board of directors appointed Christopher Prentiss as the Company’s Chief Financial Officer and principal accounting officer, effective on April 22, 2024, succeeding Mr. Binder in these capacities. Commencing on the Effective Date, Mr. Binder’s title will be changed to Executive Vice President, Special Projects, a role he is anticipated to serve in through December 31, 2024.

Mr. Prentiss, age 48, has served as Chief Financial Officer of ADARx Pharmaceuticals, Inc., a privately held clinical-stage biotechnology company, since September 2022. Between April 2015 and November 2021, he held a series of finance positions of increasing responsibility at the commercial- stage biotech company Adamas Pharmaceuticals, Inc. (“Adamas”), culminating in Chief Financial Officer commencing in November 2019. His responsibilities at Adamas included finance, accounting, investor relations, information technology and facilities. Prior to that, Mr. Prentiss was Senior Director, Controller at Dynavax Technologies Corporation, a clinical-stage biopharmaceutical company, from May 2012 to June 2013, where he was responsible for the accounting and tax functions. He previously served in senior finance positions of increasing responsibility during his earlier career at the Company between 2005-2012. Prior to that, Mr. Prentiss was a Senior Manager at KPMG LLP in the assurance practice. Mr. Prentiss received a Bachelor’s of Science degree in Accounting from Loyola Marymount University, and a Masters of Business Administration from Indiana University. Mr. Prentiss is a licensed CPA (inactive) in California.

In connection with his appointment, the Company entered into an employment offer letter with Mr. Prentiss that will govern the terms of his employment with the Company. The employment offer letter provides that Mr. Prentiss will receive an annual base salary of $460,000 and will be eligible to receive an annual performance bonus with a target bonus percentage equal to 50% of his base salary. In addition, Mr. Prentiss will be eligible to receive relocation assistance benefits through the Company’s relocation assistance program. The employment offer letter also provides that
Mr. Prentiss will be eligible to participate in the Company’s 2018 Equity Incentive Plan (the “2018 EIP”), and will be entitled to receive (a) an equity award of 103,600 restricted stock units (“RSUs”), which will vest 1/3 on each of the second, third and fourth anniversaries of the vesting commencement date, subject to the terms of the 2018 EIP and related RSU award agreement, and (b) at the Company’s next annual grant cycle for its executive officers in May 2024, an equity award at the same level as its other Executive Vice Presidents, expected to be comprised 55% of performance- based RSUs and 45% of time-based RSUs. In addition, on or shortly after the Effective Time, Mr. Prentiss will enter into a Change of Control Agreement in substantially the form filed with the Securities and Exchange Commission (“SEC”) on April 7, 2017 as Exhibit 99.1 to the Company’s Current Report on Form 8-K, which will provide that if Mr. Prentiss’s employment is subject to an involuntary termination within two years following a change in control, he will be entitled to receive continued payment of base salary for 18 months, payment of his group health insurance premiums for up to 18 months, a prorated annual performance bonus and full accelerated vesting of any unvested equity awards. Mr. Prentiss may also be entitled to receive tax gross up payments in the event any payments made in connection with a change in control are subject to the excise taxes imposed by Sections 280G and 4999 of the Internal Revenue Code.

Mr. Prentiss will also enter into an indemnity agreement with the Company in the form previously filed with the SEC as Exhibit 10.1 to the Company’s Registration Statement on Form S-1, originally filed with the SEC on April 30, 2004, as amended.

[wyattdog]

His earlier career also included senior financial roles at InterMune, Inc. this the company Mike mentioned at the last conference call that was purchased by Roche for 8.3 billion$

[ktim]

Seems good news Binder is willing to step back/down and provide such a long period for a smooth transition.

[letitride]

Special projects M&A comes to mind at the very least a partnership or 2.

[runner]

So, reading the details, he worked for Mannkind previously for six years from 2005 to 2011. Did he work with Matthew Pfeffer at that time? I have only been an investor since 2007, so I am murky on details before that.

[brianrocco]

Mar 26, 2024 15:12:47 GMT -5 cretin11 said:

That's a significant retirement. Sometimes these can be a good thing, though don't know if Binder is one we should be glad to see retiring. He's been a good one, hopefully Prentiss is as well.

I was very impressed by S. Binder.  He was a good communicator, transparent, and his statements grounded in facts.  I'm disappointed to learn of his departure.  I hope it was not because of disagreement on policy.

[stockwhisperer]

It is normal for people to retire. His replacement seems great. MC certainly showed great appreciation for Steve on the recent conference call. I wondered about that at the time. I doubt it was any coincidence that MC spoke so highly of Steve and said, “ I want to acknowledge as we go forward the hard work that Steve has done in landing our royalty financing deal as we worked on this for over six months. We're in a great position because of Steve's vision and leadership over the last seven years. And before I turn it over, I just want to acknowledge all the hard work Steve has done for us and our shareholders and our employees.
With that said, I'll turn over to Steve to go over the financials for the quarter.” I do not think there is a reason reason to be pessimistic or suspicious about this. Just part of what happens in any business from time to time. So many positives ahead.

[mango]

What is the Special Projects division Binder will oversee until the end of the year? That’s interesting. Assuming it is R&D related?

[Clement]

Let's raise a glass to Steven Binder!

[mayday]

Mar 27, 2024 7:48:36 GMT -5 Clement said:

Let's raise a glass to Steven Binder!

Little early?

[prcgorman2]

Mar 27, 2024 7:54:12 GMT -5 mayday said:

Mar 27, 2024 7:48:36 GMT -5 Clement said:

Let's raise a glass to Steven Binder!

Little early?

It's 5 o'clock somewhere...

[prcgorman2]

Mar 27, 2024 7:45:19 GMT -5 mango said:

What is the Special Projects division Binder will oversee until the end of the year? That’s interesting. Assuming it is R&D related?

"Special Projects" is, I think, a corporate term meaning "nothing in particular".  Where I used to work when the term "special projects" was applied to transitions in leadership it usually meant one of two things; paid furlough, or consulting.

I think in Steven Binder's case it is the latter where Binder will provide knowledge transfer, ensure strategic execution, assist relationship management, and generally otherwise facilitating a smooth transition.

[dh4mizzou]

At my old employer people left to "pursue other opportunities" when they were let go. Doubt this is the case and it may be a situation where Steve hangs around for 'moral' support.