What happened
Shares of MannKind (MNKD 2.07%) were up 15.6% Wednesday morning after the company released first-quarter earnings after the market closed on Tuesday.
The company specializes in treating endocrine and orphan lung diseases, using its signature dry-powder formulations and inhalation devices. Its shares are down a little more than 16% so far this year.
So what
The healthcare company's first-quarter earnings had plenty of good news for investors. MannKind reported revenue of $41 million, up 239% year over year, including $23 million in revenue from Tyvaso DPI, a pulmonary arterial hypertension (PAH) therapy the company collaborated on with United Therapeutics. The $23 million consisted of $12 million in royalties and $11 million in collaboration and services revenue.
MannKind also trimmed its losses by 72% over the same quarter in the prior year, with only $6 million in losses. It reported it had $167 million in cash as of March 31. The company also had sales of $12.4 million in the quarter, up 26% year over year from its ultra-rapid-acting inhaled insulin, Afrezza.
Now what
At its current rate of improvement, it is easy to see MannKind becoming profitable some time this year. The company has another potential therapy on the way that's worth watching. MannKind's inhaled Clofazimine, an antibiotic designed to treat non-tuberculosis mycobacterial lung disease, is in a phase 2/3 trial.
The company also said it is increasing its manufacturing capacity because of the strong demand for its products. Thanks to its collaboration deal with United Therapeutics, MannKind makes an additional $200 million to $240 million in annual revenue for every 10,000 new Tyvaso DPI patients.
