MannKind (NASDAQ:MNKD) Announces Quarterly Earnings Results, Hits Estimates

MannKind (NASDAQ:MNKD) issued its quarterly earnings results on Wednesday. The biopharmaceutical company reported ($0.01) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.01), FiscalAI reports. The firm had revenue of $109.37 million during the quarter, compared to the consensus estimate of $108.80 million. MannKind had a negative net margin of 6.63% and a negative return on equity of 11.21%. The business’s revenue was up 43.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.05 EPS.

Here are the key takeaways from MannKind’s conference call:

• Afrezza’s pediatric launch showed encouraging early traction: all 20 priority institutions have written at least one prescription, and one in three of the top 100 pediatric rapid-acting insulin prescribers has prescribed the product. Management reported rising new prescriptions, repeat writing and early refills, while noting that many prescriptions currently use the $35 cash-pay program and may later convert to insurance coverage.
• FUROSCIX continued to grow ahead of the ReadyFlow launch. Second-quarter FUROSCIX sales rose 43% sequentially to $22.2 million, with nephrology sales up 67%; the FDA-approved ReadyFlow autoinjector is expected to become available by late August and management expects it to materially improve FUROSCIX gross margins.
• Nintedanib DPI advanced toward Phase II development in IPF. The Phase I-B study in IPF patients reported no serious adverse events, discontinuations or bronchospasms, and generally mild, transient cough; the Phase II trial has dosed its first patient, although the regulatory pathway and potential expansion into PPF and other ILD indications remain uncertain.
• Second-quarter revenue increased 43% year over year to $109.4 million, while first-half revenue rose 29% to $199.5 million. Marketed products grew 27% sequentially, reflecting increasing diversification beyond MannKind’s United Therapeutics-related royalty and collaboration revenue streams.
• Profitability weakened as the company invested heavily in launches and development. GAAP net loss was $19 million versus $700,000 of income a year earlier, while non-GAAP net loss was $2.7 million; MannKind also expects to pay the $45 million FUROSCIX-related CVR in the third quarter and record approximately $16 million of associated expense, partly offset by a $50 million PIPE financing.

MannKind Stock Performance

Shares of NASDAQ:MNKD traded up $0.14 during midday trading on Wednesday, reaching $4.10. 6,807,819 shares of the company’s stock were exchanged, compared to its average volume of 4,674,084. The company’s 50 day simple moving average is $3.92 and its two-hundred day simple moving average is $3.78. The firm has a market capitalization of $1.27 billion, a PE ratio of -58.56 and a beta of 1.12. MannKind has a 12 month low of $2.23 and a 12 month high of $6.51.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. Weiss Ratings restated a “sell (d)” rating on shares of MannKind in a report on Wednesday, July 8th. Zacks Research downgraded MannKind from a “hold” rating to a “strong sell” rating in a research report on Tuesday, July 7th. Mizuho lowered their price target on MannKind from $8.00 to $7.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Royal Bank Of Canada upped their price target on MannKind from $3.50 to $4.75 and gave the company a “sector perform” rating in a report on Thursday, May 7th. Finally, Wall Street Zen upgraded MannKind from a “sell” rating to a “hold” rating in a research report on Sunday, July 5th. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, MannKind has an average rating of “Moderate Buy” and a consensus price target of $9.34.

Insider Buying and Selling at MannKind

In related news, Director Steven B. Binder sold 16,940 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $3.29, for a total value of $55,732.60. Following the sale, the director owned 808,008 shares of the company’s stock, valued at $2,658,346.32. The trade was a 2.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 2.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Franklin Resources Inc. boosted its holdings in MannKind by 1.4% during the third quarter. Franklin Resources Inc. now owns 162,217 shares of the biopharmaceutical company’s stock valued at $871,000 after purchasing an additional 2,201 shares in the last quarter. Mariner LLC raised its holdings in shares of MannKind by 1.3% in the 4th quarter. Mariner LLC now owns 209,479 shares of the biopharmaceutical company’s stock worth $1,188,000 after buying an additional 2,777 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of MannKind by 108.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 5,636 shares of the biopharmaceutical company’s stock worth $32,000 after buying an additional 2,927 shares during the period. Royal Bank of Canada lifted its position in shares of MannKind by 2.1% during the 4th quarter. Royal Bank of Canada now owns 206,612 shares of the biopharmaceutical company’s stock worth $1,170,000 after buying an additional 4,200 shares during the period. Finally, Alliancebernstein L.P. lifted its position in shares of MannKind by 1.7% during the 3rd quarter. Alliancebernstein L.P. now owns 279,091 shares of the biopharmaceutical company’s stock worth $1,499,000 after buying an additional 4,541 shares during the period. Institutional investors own 49.55% of the company’s stock.

About MannKind

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF).