MannKind Corporation Reports Q3 Loss Of $36.5 Million

MannKind Corporation Reports Q3 Loss Of $36.5 Million
Image source: Pixabay

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).

Exclusive: Lee Ainslie Struggled During The Third Quarter As Tech Holdings Fell

activist short selling Investing investLee Ainslie's Maverick Capital had a difficult third quarter, although many hedge funds did. The quarter ended with the S&P 500's worst month since the beginning of the COVID pandemic. Q3 2021 hedge fund letters, conferences and more Maverick fund returns Maverick USA was down 11.6% for the third quarter, bringing its year-to-date return to Read More

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.

Updated on

No posts to display