Higher Expenses Widen MannKind's Q1 Loss by 27%

Clinical-stage biopharmaceutical company MannKind (NASDAQ: MNKD  ) reported its first-quarter results before the opening bell this morning, pointing to higher spending ahead of its all-important PDUFA decision for experimental inhaled diabetes drug Afrezza on July 15.

For the quarter, MannKind produced no revenue and saw its operating expenses move higher by 13.7% to $41.4 million. Research and development expenses actually fell by just shy of 1% to $26.2 million from the prior-year period; however, general and administrative expenses ballooned 52% to $15.2 million as non-cash stock-based compensation rose by $3.4 million and the company experienced a $1.2 million increase in consulting and legal fees.

Net loss for the quarter increased 27% to $52.1 million, or $0.14 per share, from $41 million, or $0.15 per share from the year-ago quarter. MannKind has an additional 88.7 million shares outstanding now as compared to the prior year, thus the wider net loss but smaller EPS loss. Comparatively, Wall Street had expected MannKind to produce a slightly narrower $0.13-per-share loss.

As is always important with wholly clinical-stage companies, MannKind reported that its cash and cash equivalents totaled $35.8 million, compared with $70.8 million in the sequential fourth quarter. It also notes that it has $30.1 million in available borrowing capacity with the Mann Group to fund the company if needed.

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  • Report this Comment On May 12, 2014, at 5:55 PM, theeseer wrote:

    Al Mann expressed confidence in the company call today concerning the all important FDA approval. The delay is not a problem in terms of sufficient funds to carry the company through the FDA announced decision date of July 15th although the company is hoping for a quicker decision. Al Mann said "intensive discussions" were underway with potential partners.

    I'm long the stock and believe that this company will soon have a profitable future.

  • Report this Comment On May 12, 2014, at 8:12 PM, theeseer wrote:

    Sorry to post again but this $3.50 quote on approval is ridiculous. George Rho and other longtime analysts of the Pharma sector peg the projected price per share of MNKD in the neighborhood of 36.50 over two years. Keep in mind MNKD is entering the fastest growing and one of the largest health sectors, the diabetes market. On track to be a 32 billion dollar market by 2018. This does not even consider the "tecnosphere" whistle size inhaler soon to be used for many other drugs and those license fees will be huge.

    Note: In todays conference call one important "Tell" as they say in poker, was dropped. Al Mann stated that they are in conversations with the FDA to answer questions. If there was going to be a rejection they already have 5 years of data so I am "guessing" labeling questions for approval. Its probably done and to be announced soon!!

  • Report this Comment On May 12, 2014, at 8:46 PM, missjessiecat wrote:

    This is the best investment available in today's market. My projection is that by year end the pps will be north of $20. Yes, that's speculation, but I've put my money where my moth is!

  • Report this Comment On May 12, 2014, at 11:28 PM, larryw101 wrote:

    Only a fool, such as the author of this article, would only focus on this quarter's loss. The micro view taken by this bozo author is only over shadowed by lack his lack of intelligence. There is so much ore to the Mankind story than this quarter's loss.

    Motley Fool is scraping the bottom of the barrel it seems in finding authors to write for them.

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Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

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8/31/2015 1:43 PM
MNKD $3.84 Down -0.08 -2.04%
MannKind Corp CAPS Rating: **