MannKind Corporation (MNKD) Stock Slammed Despite Smaller Q1 Losses

MannKind Corporation (NASDAQ:MNKD) surprised investors with a Q1 revenue above analyst expectations and an earnings loss some 33% less than forecasts. MNKD stock holders promptly drove down the share price as much as 25% in early trading this morning.

MannKind Corporation (NASDAQ:MNKD)


The Valencia, CA-based biopharmaceutical company focuses on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes.

MKND said it had a net loss of $16.3 million, or 17 cents a share, on revenue of $3 million, according to a company press release. Analysts had expected revenue of $2.75 million.  Revenue was comprised of $1.8 million from the sale of surplus bulk insulin to a third party and $1.2 million of recognized Afrezza product sales as dispensed to patients, according to the company.

As of March 31, deferred net revenue included $1.8 million of Afrezza product shipped to the third-party logistics provider and wholesale distributors, but not yet recognized as revenue. No management comments accompanied the earnings announcement.

Mannkind announced last Thursday that it had signed a deal with a diabetes management platform One Drop to be included in its service. One Drop is a subscription service platform that offers unlimited blood glucose testing supplies and around-the-clock live support from diabetes experts.

“The complexity and conflicting incentives of the United States healthcare system are not aligned to help people with diabetes on insulin achieve optimal outcomes, as we see that almost seven out of ten people on mealtime insulin are not at the ADA [American Diabetes Association] goal of <7% A1C,” Michael Castagna, MannKind’s chief commercial officer, said in a May 4 press release.  “Even though injectable insulins have been available for decades, 20% of users regularly skip injections. “We intend to empower people with diabetes to take charge of their health by trying something different.”

MNKD stock has hovered at or near all-time lows for nearly a month, down almost 97% from June 2014.



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