MannKind (NASDAQ:MNKD) Releases Quarterly Earnings Results, Hits Expectations

MannKind (NASDAQ:MNKD) announced its quarterly earnings results on Wednesday. The biopharmaceutical company reported ($0.01) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.01), FiscalAI reports. The company had revenue of $109.37 million for the quarter, compared to the consensus estimate of $108.80 million. MannKind had a negative return on equity of 11.21% and a negative net margin of 6.63%.MannKind’s revenue was up 43.0% compared to the same quarter last year. During the same quarter in the previous year, the business 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 Up 3.5%

Shares of MNKD stock traded up $0.14 during trading hours on Wednesday, hitting $4.10. 6,807,819 shares of the company’s stock traded hands, compared to its average volume of 4,674,084. The stock’s fifty day simple moving average is $3.92 and its two-hundred day simple moving average is $3.78. MannKind has a 12-month low of $2.23 and a 12-month high of $6.51. The stock has a market cap of $1.27 billion, a price-to-earnings ratio of -58.56 and a beta of 1.12.

Insider Activity at MannKind

In related news, Director Steven B. Binder sold 16,940 shares of the company’s stock in a transaction that occurred on Tuesday, May 12th. The stock was 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 in the company, valued at $2,658,346.32. This represents a 2.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd grew its stake in shares of MannKind by 108.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 5,636 shares of the biopharmaceutical company’s stock worth $32,000 after acquiring an additional 2,927 shares during the last quarter. Lido Advisors LLC bought a new position in MannKind in the 4th quarter worth about $63,000. Mercer Global Advisors Inc. ADV bought a new position in MannKind in the 4th quarter worth about $70,000. Freestone Grove Partners LP purchased a new stake in MannKind during the 4th quarter valued at about $80,000. Finally, Ameriprise Financial Inc. grew its position in MannKind by 45.1% during the 3rd quarter. Ameriprise Financial Inc. now owns 17,055 shares of the biopharmaceutical company’s stock valued at $92,000 after purchasing an additional 5,300 shares during the last quarter. Hedge funds and other institutional investors own 49.55% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. HC Wainwright reiterated a “buy” rating on shares of MannKind in a research report on Thursday, July 23rd. Wells Fargo & Company raised their price target on MannKind from $11.00 to $14.00 and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Weiss Ratings reiterated a “sell (d)” rating on shares of MannKind in a report on Wednesday, July 8th. Wall Street Zen upgraded shares of MannKind from a “sell” rating to a “hold” rating in a report on Sunday, July 5th. Finally, Mizuho reduced their price objective on shares of MannKind from $8.00 to $7.00 and set an “outperform” rating on the stock in a research report on Thursday, May 7th. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $9.34.

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).