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Why MannKind Corp. Stock Briefly Dropped Today

By George Budwell - Jul 30, 2015 at 12:44PM

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MannKind's shares briefly dipped by double-digits today. Here's why.

What: MannKind Corp.'s (MNKD 4.84%) stock briefly fell by 11% today after its marketing partner Sanofi (SNY 2.52%) reported its second-quarter sales for the inhaled insulin product Afrezza. According to the press release, Afrezza's second-quarter sales came in at a meager $2.2 million for the three month period and $3.3 million for the entire first half of the year--putting it well off of the track toward blockbuster status. 

So what: MannKind is struggling mightily with its debt load, evinced by yesterday's Senior note exchange that saw the the company pay off a hefty portion of its $100 million loan amount with shares. So, the biotech desperately needs Afrezza's sales to pick up in hurry in order to avoid another having to dilute shareholders further.

Now what:  MannKind is scheduled to report its second-quarter results in the second week of August, where investors will get a much needed update on the company's financial status, and perhaps more importantly, a bit more color on why Afrezza's sales are lagging. As a reminder, MannKind shares both profits and losses on Afrezza with Sanofi, meaning that the forthcoming second-quarter numbers probably won't be pretty. As such, you may want to avoid this stock for the time being. 

 

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Stocks Mentioned

Sanofi Stock Quote
Sanofi
SNY
$54.40 (2.52%) $1.34
MannKind Corporation Stock Quote
MannKind Corporation
MNKD
$3.68 (4.84%) $0.17

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