MannKind Corporation (NADSAQ:MNKD) today reported financial results for the fourth quarter and full year ended December 31, 2014.
For the fourth quarter, our operating expenses declined 35% compared to the similar quarter in 2013. Research and development costs were significantly lower, mainly due to a reduction in non-cash compensation expenses and much lower clinical trial expenses following the completion of the Affinity studies in 2013. General and administrative costs declined 29%, mainly reflecting lower non-cash compensation expenses.
For the full year 2014, our total operating expenses increased modestly, with a decrease in research and development costs offset by an increase in general and administrative costs. Research and development costs decreased due to the completion of our Affinity trials, the pivotal clinical trials relating to the efficacy and safety of our novel inhaled insulin, Afrezza. Higher general and administrative costs resulted primarily from increased professional fees, principally related to the negotiation and completion of a collaboration agreement with Sanofi. In addition, professional fees reflected a significant expansion in our program to identify, screen and fully evaluate new product opportunities that will best take advantage of the unique advantages of our Technosphere® drug delivery technology.
The net loss applicable to common stockholders for 2014 was $198.4 million or $0.51 per share based on 385.2 million weighted average shares outstanding, slightly higher than the net loss to common shareholders of $191.5 million, or $0.64 per share on 299.6 million weighted average shares outstanding in 2013. Our common shares outstanding at year-end 2014 were 406.1 million.
Cash and cash equivalents at the end of 2014 were $120.8 million. Subsequent to year end, we received $50.0 million relating to two product development milestones achieved in the fourth quarter of 2014 from our collaboration agreement with Sanofi. In addition, we have $30.1 million of borrowings remaining under the loan arrangement with the Mann Group.
“After achieving a number of significant milestones during 2014, we began the commercial production of Afrezza during the fourth quarter of the year,” said Hakan Edstrom, MannKind’s President and Chief Executive Officer. “With our flagship product, Afrezza©, in the early stages of its commercial launch in the United States, we now enter a very exciting new phase forMannKind.”
Shares of MannKind Corporation opened today at $6.71 and are currently trading down at $6.67. MNKD has a 1-year high of $11.48 and a 1-year low of $3.80. The stock’s 50-day moving average is $6.29 and it’s 200-day moving average is $6.15.
On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on February 4, RBC analyst Adnan Butt maintained a Buy rating on MNKD, with a price target of $13, which implies an upside of 93.7% from current levels. Separately, on January 16, MLV & Co.’s Arlinda Lee reiterated a Hold rating on the stock and has a price target of $7.
MannKind Corp is a development stage company engaged in the discovery, development, and commercialization of therapeutic products for diseases such as diabetes.