Company Update (NASDAQ:MNKD): MannKind Corporation Reports 2015 First Quarter Financial Results


MannKind Corporation (NASDAQ:MNKD) reported financial results for the first quarter ended March 31, 2015.

For the first quarter of 2015, total operating expenses were $21.7 million, a decline of 47.5% compared to the similar quarter in 2014. Research and development expenses were $9.4 million, a decline of 64.2% compared to the first quarter of 2014, reflecting the commercialization of Afrezza in the first quarter of 2015 and a reduction in non-cash stock compensation expense. General and administrative expenses were $10.5 million, a decline of 31.2% compared to the first quarter of 2014, mainly reflecting lower non-cash stock compensation expenses.

For the quarter ended March 31, 2015, our portion of the loss sharing arrangement with Sanofi related to Afrezza was $12.4 million, which we financed by way of an advance under the loan facility with our partner. The amount outstanding under theSanofi loan facility is now $15.4 million. During the three months ending on March 31, 2015, we recorded $7.1 million in Afrezza product shipments as deferred product sales from our collaboration with Sanofi.

The net loss for the first quarter of 2015 was $30.7 million, or $0.08 per share based on 398.9 million weighted average shares outstanding, compared with a net loss of $52.1 million, or $0.14 per share based on 368.8 million weighted average shares outstanding for the first quarter of 2014. The number of common shares outstanding at March 31, 2015 was 409.1 million.

Cash and cash equivalents remained at $120.8 million at March 31, 2015 and at December 31, 2014, respectively. During the first quarter of 2015, we also received a $50.0 million milestone payment related to our collaboration agreement with Sanofi as well as $6.2 million in proceeds from warrant and option exercises. This cash inflow offset our first quarter operating activities, which included building up Afrezza product inventory, purchasing additional machinery and equipment related to the commercialization of Afrezza and the pursuit of new product opportunities. Currently, $30.1 million remains in available borrowings under the amended loan arrangement with The Mann Group. (Original Source)

Shares of MannKind Corporation closed today at $4.04, $0.12 or 2.88%. MNKD has a 1-year high of $11.48 and a 1-year low of $4. The stock’s 50-day moving average is $4.96 and its 200-day moving average is $5.70.

On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on April 16, RBC analyst Adnan Butt reiterated a Buy rating on MNKD, with a price target of $10, which represents a potential upside of 148.8% from where the stock is currently trading. Separately, on March 24, Jefferies Co.’s Shaunak Deepak maintained a Buy rating on the stock and has a price target of $9.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Adnan Butt and Shaunak Deepak have a total average return of -5.4% and -34.6% respectively. Butt has a success rate of 47.9% and is ranked #3334 out of 3594 analysts, while Deepak has a success rate of 0.0% and is ranked #3439.

The street is mostly Neutral on MNKD stock. Out of 6 analysts who cover the stock, 4 suggest a Hold rating and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $7.80, which represents a potential upside of 94% from where the stock is currently trading.

MannKind Corp is a development stage company engaged in the discovery, development, and commercialization of therapeutic products for diseases such as diabetes.