Stock Update (NASDAQ:MNKD): MannKind Corporation Reports 2016 First Quarter Financial Results

MannKind Corporation (NASDAQ:MNKD) reported financial results for the first quarter ended March 31, 2016.

For the first quarter of 2016, total operating expenses were $20.0 million as compared to $21.7 million for the same quarter in 2015.  Research and development expenses were $5.1 million for the first quarter of 2016, a decline of 45%, compared to the first quarter of 2015, primarily due to the reduction in force and closure of the Paramus, New Jersey facility in 2015 and the transition from development to commercial activities. General and administrative costs were $7.4 million for the first quarter of 2016, a decline of 30%, compared to the first quarter of 2015, mainly due to the reduction in force and closure of the Paramus facility in 2015 in addition to reduced professional fees related to strategic planning activities incurred in 2015 and lower non-cash stock compensation expense. Product manufacturing costs for the first quarter of 2016 were $7.5 million, an increase of 300%, compared to the same quarter of 2015, due to underutilization of the manufacturing facility and loss from foreign currency exchange of $2.4 million related to purchase commitments.

The Company’s portion of the loss sharing under the Sanofi License Agreement was $5.5 million for the first quarter of 2016.  The total amount owed to Sanofi is currently $68.8 million, including accrued interest of $2.8 million.

The net loss for the first quarter of 2016 was $24.9 million, or $0.06 per share based on 428.9 million weighted average shares outstanding, compared to the net loss of $30.7 million, or $0.08 per share on 398.9 million weighted average shares outstanding in the first quarter of 2015. The number of common shares outstanding at March 31, 2016 was 429.1 million.

Cash and cash equivalents at March 31, 2016 were $27.7 million, compared to $59.1 million at December 31, 2015. In February 2016, an upfront fee of $250,000 was received pursuant to the previously announced collaboration and license agreement with Receptor Life Sciences.  In addition, $467,000 was received from exercises of stock options by employees.  Currently, $30.1 million remains available for borrowing under the amended loan arrangement with The Mann Group. A recently filed universal shelf registration statement became effective along with a prospectus supplement for a $50.0 million ATM facility. (Original Source)

Shares of MannKind are down 3% to $1.28 in after-hours trading. MNKD has a 1-year high of $7.32 and a 1-year low of $0.64. The stock’s 50-day moving average is $1.62 and its 200-day moving average is $1.62.

On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on April 28, JMP analyst Jason Butler reiterated a Hold rating on MNKD. Separately, on March 30, Goldman Sachs’ Jay Olson maintained a Sell rating on the stock and has a price target of $0.25.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Butler and Jay Olson have a total average return of 37.7% and 40.8% respectively. Butler has a success rate of 57.1% and is ranked #102 out of 3828 analysts, while Olson has a success rate of 100.0% and is ranked #815.

Overall, 3 research analysts have rated the stock with a Sell rating, one research analyst has assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $0.25 which is -81.5% under where the stock opened today.

MannKind Corp. is a biopharmaceutical company. It focuses on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer. MannKind was founded by Alfred E. Mann on February 14, 1991 and is headquartered in Valencia, CA.


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