MannKind Posts Wider Q2 Loss, Up on Sanofi Deal for Afrezza - Analyst Blog

MannKind Corporation 's ( MNKD ) loss of 19 cents per share in the second quarter of 2014 was wider than the Zacks Consensus Estimate of a loss of 11 cents and the year-ago loss of 16 cents. Higher costs led to the wider loss in the reported quarter.

Mannkind Corporation - Earnings Surprise | FindTheBest

MannKind did not generate any revenue in the second quarter of 2014 as in the year-ago quarter. We note the company will report revenues going forward as Afrezza has been approved by the FDA for the improvement of glycemic control in adults suffering from diabetes mellitus. The approval was gained in Jun 2014.

Quarterly Highlights

Research and development (R&D) expenses climbed 38% in the reported quarter to $37.3 million. Higher non-cash stock based compensation expenses led to the increase.

General and administrative expenses more than doubled to $32.5 million. Once again, it was the increase in non-cash stock compensation expense which led to the massive rise.

Our Take

We believe that the numbers put out by MannKind in the second quarter of 2014 are not as significant as the deal with the French company Sanofi ( SNY ) on Afrezza (read: MannKind Enters into a Global Deal with Sanofi for Afrezza ).

Shares of the U.S. based company gained significantly after striking the partnership deal with Sanofi, which has considerable experience in marketing diabetes treatments. MannKind ended the trading session on Aug 11 at $8.53 per share, up 4.92%. We expect investor focus to remain on the performance of Afrezza following its launch.

MannKind carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care sector include Gilead Sciences ( GILD ) and Actelion ( ALIOF ). Both stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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