MannKind Corporation Disappoints With Afrezza Sales
TipRanks | May 11, 2015 07:32AM ET
By Sarah Roden
MannKind Corporation (NASDAQ:MNKD) reported first quarter 2015 results on May 7, revealing underwhelming sales and a mediocre Afrezza launch. Shares of MannKind last closed at $4.02, just above the 52-week low of $3.52. Some analysts are beginning to doubt if the company can make a comeback.
The biotechnology company posted a net loss per share of $(0.08); slightly narrower loss than the consensus of $(0.09) and an improvement from $(0.14) in the same quarter of last year. MannKind did not provide a revenue figure but the analyst consensus for quarterly revenue was $6.29 million.
The focus of the earnings report was Afrezza; a rapid-acting inhalable insulin for adults with diabetes produced by both MannKind and Sanofi (PARIS:SASY). Though Afrezza is just beginning its commercial launch, Sanofi’s recent quarterly earnings revealed that the inhalable insulin only brought in $1.1 million in the first quarter—far-below the analyst estimate of $3 million to $4 million. MannKind anticipated the weak sales were due to the low number of prescriptions. However, MannKind executive chairman Alfred Mann pointed out that Sanofi’s reported revenue for Afrezza “really covered only a portion of the quarter, since the launch only started in February.”
Mann acknowledged that Afrezza’s launch “may be getting off to a slower start” than anticipated, but MannKind expects to see an acceleration in sales. Mann added that “the potential diabetes market is enormous and Afrezza will fill a substantial need.” Analysts and executives pointed to the positive response from people with diabetes who have used Afrezza.
Now, MannKind owes $12.4 million as its portion of the loss arrangement with Sanofi. MannKind financed the loss under Sanofi’s loan facility and there is $15.4 million outstanding under the loan facility.
According to TipRanks is Hold.
Joshua Schimmer has rated MannKind 7 times since January 2010, though he has only given Sell and Hold ratings. Schimmer has earned a 50% success rate recommending the stock with a +8.1% average return when measured over a three month period. Schimmer has rated many biotechnology stocks in the past such as Amgen Inc (NASDAQ:AMGN) and Gilead Sciences (NASDAQ:GILD).
Schimmer has rated Amgen 12 times since October 2009, earning a 67% success rate recommending the company with a +5.7% average return per AMGN rating when measured over three months. Separately, Schimmer has rated Gilead Sciences 9 times since February 2011, earning a 67% success rate recommending the stock with a +5.1% average return per GILD rating when measured over three months.
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Overall, Schimmer has a 60% overall success rate recommending stocks with a +13.2% average return per rating when measured over one year.
To see more ratings made by Joshua Schimmer, visit TipRanks today.
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