MannKind shares plunged 7.19% to $1.29 in after-hours trading Monday after the company released its fiscal fourth-quarter and full-year 2015 results. The biopharmaceutical company reported a net Q4 loss of 66 cents per share compared to a loss of just 9 cents per share in the same quarter a year ago. Analysts were expecting a Q4 loss of 5 cents a share.
MannKind takes impairment charges of $206 million
The Valencia-based company said Afrezza sales continued to be weaker than expected. Poor sales were the primary reason Sanofi terminated its contract to market Afrezza in January, which affected “the value and recoverability of long-lived assets in accordance with accounting guidance.” As a result, the company took non-cash impairment charges of $206.6 million in the fourth-quarter. That includes $66.2 million related to loss on future purchase commitments and $140.4 million related to impairment of fixed assets.
During the fourth quarter, MannKind spent $6.2 million on research & development, down 65% YoY. The decline was mainly because Afrezza transitioned from development to commercial activities. General and administrative costs also fell 33.6% to $8.3 million.
For the full year 2015, the company’s total operating expenses stood at $138.1 million compared to $180 million in 2014. The FY2015 R&D expenses were $29.7 million. Full year general and administrative expenses also fell nearly 50% to $41 million. The company reported a full year loss of $368.4 million or 91 cents per share, which includes the $206.6 million in impairment charges. MannKind ended 2015 with $59.1 million in cash and cash equivalents.
MannKind names a new CCO
MannKind also announced the appointment of Michael Castagna as its new Chief Commercial Officer, effective immediately. Castagna will be responsible for the commercialization of Afrezza, and will report directly to CEO Matthew Pfeffer. He had previously worked with Amgen on a portfolio of as many as nine biosimilar drugs. He had also helped Bristol-Myers Squibb launch rheumatoid arthritis drugs.
Additionally, MannKind’s Chief Operating Officer Juergen A. Martens is resigning on March 18. The company did not give a reason for his departure.