MannKind Corporation (NASDAQ:MNKD) Surges After Company Reports Zero Revenue and Earnings Loss


Dallas, Texas 05/014/2014 (FINANCIALSTRENDS) –MannKind Corporation (NASDAQ:MNKD), which had been edging downwards towards $6 in the days leading up to their first quarter 2014 financial results release, has now started moving upwards and is already past $6.5. This despite the fact that the company reported generating zero revenue, and piled it on with a loss of $52.1 million, or $0.14 per share.

MannKind Corporation First Quarter 2-14 Financial Results

MannKind Corp reported $41.4 million in first quarter 2014 total operating expenses, a $5 million increase as compared to the $36.4 million for the same quarter last year. Research and development (R&D) expenses were $26.2 million, while general and administrative (G&A) expenses increased to $15.2 million.

The R&D expenses are virtually unchanged, but G&A expenses shot up by more than $10 million. MannKind Corp notes this is because of $3.4 million in stock-based compensation expenses, and another $1.2 million in legal and consulting fees.

The company reported a net loss for the first quarter of 2014 was $52.1 million, or $0.14 per share. This loss per share is higher than the $0.13 loss per share that analysts were expecting, but lower than the $0.15 loss per share the company reported in the first quarter in 2013.

Mark the Date – July 15

If you go by the financials, MannKind Corp should be sinking like a stone on the NASDAQ. The fact that it’s actually rising therefore has nothing to do with revenue, losses or expenses. What does affect MNKD a lot is the fate of the company’s diabetes drug Afrezza, on which the company has spent more than $500 million for research and clinical tests.

MannKind Corp is waiting on FDA approval for Afrezza under PDUFA (Prescription Drug User Fee Act). The FDA advisory committee has already recommended Afrezza for both Type-1 and Type-2 diabetes. However, the FDA last month pushed back the review dates for the drug by three months. D-day for MannKind and Afrezza is now July 15, 2014. If the FDA approves the drug, expect a huge rise in the stock price.