MannKind Corporation (NASDAQ:MNKD) fell 2.33% after the company released its fiscal third-quarter results on Monday. The biopharmaceutical company reported $36.5 million or 9 cents a share in quarterly losses. Results fell short of Wall Street expectations. Analysts were expecting only 4 cents in losses. The company had incurred a net loss of 17 cents or $50.8 million in the same quarter last year.
MannKind’s operating expenses fall
MannKind stock has gained about 30% in the last 12 months. The company’s Q3 operating expenses declined from $44.8 million last year to $38.3 million in the latest quarter. Research & development expenses also fell from $27.3 million to $19.2 million. General & administrative expenses increased 9% from $17.5 million to $19.1 million. The increase was mainly due to $13.6 million in professional fees related to the global licensing agreement with Sanofi SA (ADR) (NYSE:SNY) (EPA:SAN).
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For the first nine months of this year, operating expenses stood at $149.5 million, up from $122.8 million in the same period last year. However, the Valencia, California-based company’s cash balance improved during the quarter. MannKind said it ended the September quarter with $172.5 million in cash and cash equivalents, a significant jump from $41.2 million in the second quarter of 2014.
MannKind gets $150 million from Sanofi
During the July-September quarter, MannKind received $150 million in upfront payment from French drugmaker Sanofi for the licensing agreement. It received $17.3 million by exercising stock options and warrants. MannKind got another $40 million in July from the Tranche 4 notes purchased by Deerfield.
Shares of MannKind have declined more than 46% since the company’s inhaled insulin Afrezza won the FDA approval in June 2014. Analysts believe Sanofi is the perfect partner for MannKind to sell Afrezza. However, terms of the deal favor the French company, which is going to have more say in how and where to market the drug and how much effort to put in. Investors are worried that it may affect MannKind’s profitability.