MannKind Corporation (NASDAQ:MNKD) reported financial results for the second quarter ended June 30, 2015.
For the three and six months ended June 30, 2015, product shipments of Afrezza, our novel rapid-acting inhaled insulin therapy, were $5.9 million and $13.0 million, respectively, which we recorded as deferred product sales from our collaboration withSanofi. For the quarter ended June 30, 2015, our portion of the loss sharing arrangement with Sanofi related to Afrezza was$12.8 million, which we subsequently financed by way of an advance under the loan facility with an affiliate of Sanofi after June 30, 2015. The amount currently outstanding under the Sanofi loan facility is now $28.4 million, which includes $0.2 million in paid-in-kind interest.
For the second quarter of 2015, total operating expenses decreased from $69.8 million to $24.1 million, a decline of 65.5% compared to the same quarter in 2014, primarily due to Afrezza having moved out of clinical development into the commercial market. Additionally, non-cash stock compensation from the non-recurring achievement of performance and modification events in 2014 decreased in the second quarter of 2015 as compared to the second quarter of 2014. Research and development expenses decreased from $37.3 million to $7.7 million, a decrease of 79.4%, reflecting the transition from development to commercial activities. General and administrative expenses decreased from $32.5 million to $10.6 million, a reduction of 67.4%, mainly due to the decrease in non-cash stock compensation expense. Offsetting the total decrease of $51.5 million in R&D and G&A for the second quarter of 2015 was product manufacturing costs of $5.7 million. We did not recognize any product manufacturing costs in the second quarter of 2014 as we had not yet commenced commercialization of Afrezza.
For the first six months of 2015, operating expenses were $45.8 million, a decline of 58.8% compared to the same period in 2014. Total research and development expenses for the six months ended June 30, 2015 were $17.1 million, a decline of 73.1% compared to the same period in 2014, primarily due to reduced non-cash stock compensation expense resulting from the non-recurring achievement of performance and modification events in 2014 and in the first quarter of 2015. General and administrative expenses for the six months ended June 30, 2015 were $21.1 million, a decrease of 55.9% compared to the same period in 2014, primarily due to reduced non-cash stock compensation expense resulting from the non-recurring achievement and modification events in 2014 and in the first quarter of 2015.
The net loss for the second quarter of 2015 was $28.9 million, or $0.07 per share, based on 401.0 million weighted average shares outstanding, compared with a net loss of $73.4 million, or $0.19 per share, based on 380.8 million weighted average shares outstanding for the second quarter of 2014. The number of common shares outstanding at June 30, 2015 was 412.3 million.
Cash and cash equivalents were $107.2 million at June 30, 2015, compared to $120.8 million in the first quarter of 2015. During the second quarter of 2015, we received $6.7 million in proceeds from warrant and option exercises, $5.5 million in payments from Sanofi for product shipments, and $2.1 million in proceeds from our at-the-market sales facility. Currently, $30.1 millionremains available to borrow under our amended loan arrangement with The Mann Group. (Original Source)
Following the earnings release, MannKind Corporation shares are up 1.76% to $4.05 in pre-market trading. MNKD has a 1-year high of $10.08 and a 1-year low of $3.46. The stock’s 50-day moving average is $5.17 and its 200-day moving average is $5.45.
On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on August 6, Piper Jaffray analyst Joshua Schimmer reiterated a Hold rating on MNKD, with a price target of $3.50, which represents a potential downside of 12.1% from where the stock is currently trading. Separately, on August 3, RBC’s Adnan Butt 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, Joshua Schimmer and Adnan Butt have a total average return of 6.9% and -4.4% respectively. Schimmer has a success rate of 51.9% and is ranked #601 out of 3728 analysts, while Butt has a success rate of 47.4% and is ranked #3331.
Overall, one research analyst has rated the stock with a Sell rating, 2 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $4.50 which is 13.1% above where the stock closed last Friday.
MannKind Corp is a development stage company engaged in the discovery, development, and commercialization of therapeutic products for diseases such as diabetes.