) loss of 23 cents per share in the fourth quarter of 2012 was
wider than the Zacks Consensus Estimate of a loss of 18 cents.
Loss during the quarter was, however, narrower than the year-ago
loss of 30 cents per share. A higher share count following the
issuance of shares in Oct 2012 accounted for the lower
In Oct 2012, MannKind issued 46 million shares. The company
also entered into a purchase agreement with The Mann Group LLC,
which is controlled by MannKind's chief executive officer and
principal shareholder, Alfred E. Mann.
Quarter in Detail
MannKind did not generate any revenue in the final quarter of
2012 as in the year-ago quarter.
Research and development (R&D) expenses increased 25.2%%
to $25.3 million in the reported quarter. The increase in R&D
expenses was primarily attributable to higher costs for clinical
trial-related activities during the quarter.
MannKind is primarily focusing on the development of its lead
pipeline candidate Afrezza. An inhaled insulin, Afrezza, is being
developed for the treatment of type I (MKC-171 study) or type II
(MKC-175 study) diabetes.
General and administrative expenses decreased approximately
20.4% in the reported quarter to $8.2 million. The decrease was
primarily attributable to lower legal expenses during the
MannKind's cash burn during the fourth quarter of 2012 was
$25.9 million as compared to $29.9 million in the third quarter
For the full year 2012, MannKind suffered a loss of 94 cents,
which was 6 cents wider than the Zacks Consensus Loss Estimate.
However, the 2012 loss was narrower than the year-ago loss of
$1.32 per share. MannKind generated revenues of $35,000 during
full year 2012, as against $50,000 in 2011.
More than financial results, we expect investor focus to
remain on Afrezza. MannKind expects to present results on Afrezza
in mid-August this year. The company plans to resubmit the New
Drug Application (NDA) for Afrezza in late September or early
October this year with a final decision for the candidate
expected in Apr/Mar 2014.
We expect investor focus to remain on Afrezza. MannKind
currently carries a Zacks Rank #3 (Hold). However, other
biopharmaceutical stocks such as
) carry a Zacks Rank #2 (Buy). Another biopharmaceutical stock,
) carries a Zacks Rank #1 (Strong Buy).
ALKERMES INC (ALKS): Free Stock Analysis
MEDIVATION INC (MDVN): Free Stock Analysis
MANNKIND CORP (MNKD): Free Stock Analysis
TARGACEPT INC (TRGT): Free Stock Analysis
To read this article on Zacks.com click here.