MannKind Corporation Q1 Losses Narrow On Lower Expenses

MannKind shares rose 3.73% to $4.17 in after-hours trading Thursday after the company released its fiscal first-quarter results. The biopharmaceutical company said its total losses for the March quarter declined across the board. MannKind’s quarterly operating expenses were $21.7 million, down 47.5% from the corresponding quarter a year ago.

MannKind Afrezza

MannKind records $7.1 million in Afrezza shipments

MannKind incurred a net loss of $30.7 million or 8 cents per share, much lower than $52.1 million or 14 cents per share in the same quarter a year ago. Its R&D expenses declined 64.2% YoY to $9.4 million, largely due to the commercialization of Afrezza. The Valencia-based company reported a 31.2% decline in general & administrative expenses to $10.5 million.

The fall in general & administrative expenses reflects a reduction in non-cash stock compensation expenses, MannKind said. The company recorded $7.1 million in Afrezza product shipments during Q1 ending March 31. That figure likely includes inventory stocking and free samples provided to patients.

Last week, MannKind’s marketing partner Sanofi revealed that it generated only $1.1 million in Afrezza sales during March quarter. Analysts were expecting Q1 Afrezza sales to come in at $3-$4 million. MannKind and Sanofi launched the inhaled insulin product in the U.S. market on February 3, 2015. During the March quarter, MannKind’s portion of the loss related to Afrezza was $12.4 million.

Tourbillion Capital betting against MannKind

The company ended the quarter with $120.8 million in cash. It also received $50 million in milestone payment from its French partner. Notably, hedge fund manager Jason Karp of Tourbillion Capital remains bearish on MannKind. In a letter to investors on May 5, Karp said that MannKind stock “will go to ZERO.” He has already made millions betting against the biopharmaceutical company.

Karp described Afrezza roll out as “disastrous drug launch.” The hedge fund manager’s negative view is based on Afrezza prescriptions, which are well below Exubera. Jason Karp’s previous price target was $1, but now he expects the stock to become worthless.