Where Is MannKind Corporation (NASDAQ:MNKD) Headed?

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In 1Q 2017, MannKind Corporation (NASDAQ:MNKD) recorded revenue of $3 million, of which, Afrezza contributed $1.2 million of revenue. The other part of the sales came from the bulk supplies. The firm registered a net loss of $16.3 million against a net loss of $24.87 million in equivalent quarter of 2016, however the concern is it good enough for the growth of firm.

The highlights

In 1Q2017, the Afrezza sales stood at $1.2 million, however there existed no comparable sales, a year ago. Contrariwise, MannKind has exhibited some improvement on the funds side, which has surged to $48 million as of the close of the last quarter from $22.9 million in the three-months period closed December 2016.

This jump in cash position can be attributed to the payment of about $30 million from Sanofi, and to proceeds obtained against building sale. Now, with the receivables of Sanofi removed from the financial books, the assets have reduced considerably in the balance sheet. MannKind is disposing off its assets to acquire the required funds.

Here, it remains to note that the reason behind firm selling bulk insulin. There are professionals in the market who note it is as a concern as evidently the sales numbers are far beyond the anticipated numbers. In Q4 2017, the firm followed the same plan and sold bulk insulin to record revenue of $10.2 million. During that quarter the insulin was assigned to Sanofi under the finalized contract.

To conclude, MannKind’s sales plans are not progressing as planned. Revenue have, so far, disappointed in 2017, while the firm is seeking different means to record cash. There are no receivables registered on the books in the last quarter.

On Tuesday, the stock price of MannKind declined more than 5% to close the day at $1.30. After the recent decline, the market capitalization of firm stands around 159 million.