An Opportunity for The Better: MannKind Corporation (MNKD)

MannKind Corporation stock identified change of 27.45% away from 52-week low price and recently located move of -44.44% off 52-week high price. MNKD stock has been recorded 1.66% away from 50 day moving average and -0.83% away from 200 day moving average. Moving closer, we can see that shares have been trading -0.80% off 20-day moving average.

MannKind Corporation (MNKD) recently stated preliminary financial results for the quarter and nine months ended September 30, 2019.

Third Quarter 2019 Results

Net revenues were $14.6M for the third quarter of 2019, reflecting Afrezza net revenue of $6.4M and collaborations and services revenue of $8.2M. Afrezza net revenue increased 46% contrast to $4.4M in the third quarter of 2018, primarily driven by higher product demand (including the first shipment to Brazil), a more favorable mix of Afrezza cartridges and price.

Collaborations and services revenue increased $8.1M contrast to the third quarter of 2018, primarily driven by the license contract with United Therapeutics, which began in the fourth quarter of 2018.

On a GAAP basis, Afrezza gross loss was $0.7M for the third quarter of 2019 contrast to a gross loss of $0.9M in the same period in 2018. Afrezza cost of goods sold for the third quarter of 2019 included a one-time fee of $2.75M recorded in connection with the amendment of the Company’s insulin supply contract with Amphastar in August 2019. As a result, on a non-GAAP basis, gross profit was $2.1M or 33% for the third quarter of 2019.

Research and development (R&D) expenses for the third quarter of 2019 were $1.6M contrast to $2.0M for the third quarter of 2018. This 23% decrease was primarily attributable to a $0.4M decrease in clinical trial spending.

Selling, general and administrative (SG&A) expenses for the third quarter of 2019 were $16.7M contrast to $19.4M for the third quarter of 2018. This decrease of $2.7M, or 14%, was primarily attributable to a $0.8M decrease in personnel-related costs and a $1.9M decrease in Afrezza marketing costs.

Interest expense on notes for the third quarter of 2019 was $4.1M contrast to $1.0M for the third quarter of 2018. This $3.1M increase or 316% was primarily attributable to a $3.4M charge realized as a result of achieving of a sales milestone in the third quarter of 2019 under the Company’s milestone contract with Deerfield.

The net loss for the third quarter of 2019 was $10.4M, or $0.05 per share contrast to a $24.2M net loss in the third quarter of 2018 or $0.16 per share. The decrease was primarily the result of increased total revenues from higher Afrezza commercial demand and from the licensing and research contracts with United Therapeutics.

Nine Months Ended September 30, 2019 

Net revenues were $47.0M for the nine months ended September 30, 2019, reflecting Afrezza net revenue of $17.5M and collaborations and services revenue of $29.5M. Afrezza net revenue increased 52% contrast to $11.5M for the nine months ended September 30, 2018, primarily Because of higher product demand (including the first shipment to Brazil), a more favorable mix of Afrezza cartridges and price. Collaborations and services revenue increased $29.3M contrast to the nine months ended September 30, 2018, which was primarily attributed to the licensing contract ($23.3M) and research contract ($5.9M) with United Therapeutics, both of which began in the fourth quarter of 2018.

On a GAAP basis, Afrezza gross profit was $2.1M for the nine months ended September 30, 2019, an improvement of $5.0M or 173% contrast to a gross loss of $2.9M in the same period in 2018, primarily Because of a raise of $6.0M in net revenue, a $1.8M decrease in inventory write-offs, partially offset by increased costs Because of higher sales and the Amphastar one-time amendment fee of $2.75M in the third quarter of 2019. As a result, on a non-GAAP basis, gross profit was $4.9M or 28% for the nine months ended September 30, 2019.

The Healthcare sector company, MannKind Corporation noticed change of 0.78% to $1.3 along volume of 1990571 shares in recent session compared to an average volume of 2052.96K. MNKD’s shares are at 4.84% for the quarter and driving a 10.64% return over the course of the past year and is now at 0.78% since this point in 2018. The average volatility for the week at 6.03% and for month was at 6.05%. There are 206.38M shares outstanding and 195.74M shares are floated in market. Right now, the stock beta is 2.3.