Key Points
Investors weren't pleased with the biotech's bottom-line decline.
It also missed the consensus analyst estimate for that metric.
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MannKind (NASDAQ: MNKD) was a stock to avoid on the second-to-last trading day of the week. Investors eagerly sold out of the commercial-stage biotech's equity, as they clearly felt its latest earnings release to be lacking -- despite a significant top-line beat. MannKind closed the day down more than 7% in value.
An unkind investor reaction
MannKind released its fourth-quarter and full-year 2025 results before market open, reporting that revenue grew 46% year over year to just under $112 million. However, that period's tally includes almost $22.9 million from sales of edema treatment Furoscix. This became part of the company's portfolio following the October 2025 acquisition of the drug's developer, scPharmaceuticals.
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On the bottom line, net income not in accordance with generally accepted accounting principles eroded to just over $1.5 million ($0.01 per share), from the year-ago profit of almost $23 million.
That meant a mixed quarter for MannKind, as it narrowly missed the average analyst estimate of $0.02 per share for non-GAAP (adjusted) profitability but trounced the consensus revenue estimate of $97.9 million.
Notable increases in cost of goods sold, mostly related to incorporating Furoscix into the portfolio, and higher research and development expenses dinged the bottom line.
Oversold
I don't think that investor reaction was justified. Furoscix is a worthy addition to the company's product lineup, and it has a strong pipeline with several projects in the later stages of development. I wouldn't be quite so discouraged by the numbers, and with the sell-off, I'd consider MannKind stock a bargain now.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MannKind. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
