Is MannKind Corporation (NASDAQ:MNKD) Heading In The Right Direction?


In 1Q 2017 release, MannKind Corporation (NASDAQ:MNKD) posted revenue of $3 million, of which, revenue of $1.2 million was from Afrezza. The second part of the revenue came from the sale of bulk supplies. The company posted a net loss of $16.3 million compared to net loss of $24.87 million in 1Q 2016, however the question remains is it good enough for the firm.

The updates

In 1Q2017, the sales of Afrezza came at $1.2 million, while there were no comparable sales, a year earlier. On contrary, MannKind has shown some improvement on the cash position side, which has increased to $48 million as of the close of Q1 2017 from $22.9 million in December.

This increase in cash position can be accredited to the payment of around $30 million from Sanofi, and also to proceeds received against sale of a building. Now, with the Sanofi receivable removed from the books, the balance sheet has far less assets. MannKind is selling off its assets to get the required funds.

Here, it remains to understand the reason behind company selling so much of its bulk insulin. There are experts in the market who see it is as a big concern as clearly the sales numbers are well beyond the expectations. In Q4 2017, the company followed the same approach and sold bulk insulin to generate revenue of $10.2 million. In that respective quarter the insulin was given to Sanofi under the finalized deal.

To conclude, MannKind’s sales initiatives are leading nowhere. Revenue have thus far disappointed in 2017, while the company is looking for different ways to generate cash. There are no receivables noted on the books this reported quarter.

In the last trading session, the stock price of MannKind jumped more than 15% to close the day at $1.22. After the recent surge, the market cap of firm stands at 116.08 million.