What happened

Shares of MannKind Corporation (NASDAQ: MNKD), a small-cap biotech commercializing the inhaled insulin product Afrezza, shed 22.2% of their value in March, according to S&P Global Market Intelligence . What sent MannKind's shares spiraling downward?

MannKind's stock moved lower in response to the company's clear need to raise capital. Complicating matters more, the biotech's shares were further hampered by the ongoing risk avoidance behavior among investors resulting from President Trump's trade war with China. 

An hourglass close to running out of sand.

Image source: Getty Images.

So what

Predictably, MannKind did turn to the markets to raise capital last week to the tune of $28 million. In response, the drugmaker's shares fell by another 24.8% last Friday. With the markets in revolt over Trump's controversial trade policies, MannKind's stock may have trouble finding a bottom anytime soon. 

Now what

Can MannKind avoid further dilutive capital raises and a possible date with bankruptcy court? Even though Afrezza's sales are picking up to some degree, the long and short of it is that the drug's commercial launch would need to kick into overdrive to save MannKind at this point.

After all, the biotech only has about two quarters of cash remaining after this latest financing, implying that it will tap the markets yet again within the next month or so. That's not a sound plan for share-price appreciation, quite frankly. 

As a more immediate concern, MannKind's shares have now fallen below the $2 mark and they seem to be headed even lower in the near term. Consequently, the company may soon be facing another delisting notification from the Nasdaq stock exchange. MannKind therefore seems to be quickly running out of time to turn its business around.