MannKind Corporation (NASDAQ: MNKD) saw its shares plunge 10.50% in pre-market trading on Wednesday, following the release of its second quarter 2025 financial results and the announcement of a strategic financing agreement with Blackstone. The biopharmaceutical company's mixed financial performance and the terms of the new deal appear to have raised concerns among investors about its future prospects.

MannKind's Q2 2025 results showed some positive indicators, with revenue reaching $76.5 million and operating income of $5.299 million. The company reported a net income of $668,000 and an adjusted earnings per share (EPS) of $0.05, which was in line with estimates. However, the revenue slightly missed analyst expectations of $77.521 million, which may have contributed to the negative sentiment.

In a separate announcement, MannKind revealed a strategic financing agreement with Blackstone for up to $500 million. The deal includes an immediate cash infusion of $75 million at closing, with the facility maturing in August 2030. While this agreement provides MannKind with significant financial resources, the market's negative reaction suggests concerns about potential dilution or the long-term impact of the financing terms on the company's financial structure. The steep decline in share price indicates that investors are reassessing MannKind's valuation in light of these developments, focusing on the challenges ahead and the need for such a large financing deal despite the company's profitability.