MannKind Corporation’s (MNKD) loss of 15 cents per share in the first quarter of 2013 was narrower than the Zacks Consensus Estimate of a loss of 16 cents and the year-ago loss of 27 cents per share.
Quarter in Detail
MannKind did not generate any revenue in the first quarter of 2013 as in the year-ago quarter.
Research and development (R&D) expenses increased 9.3% to $26.4 million in the reported quarter. The increase in R&D expenses was primarily attributable to higher costs for clinical trial-related activities during the quarter.
MannKind is primarily focusing on the development of its lead pipeline candidate Afrezza. Afrezza, an inhaled insulin, is being developed for the treatment of type I (Affinity 1 study) or type II (Affinity 2 study) diabetes.
General and administrative expenses increased approximately 2.7% in the reported quarter to $10.0 million. The increase was primarily attributable to higher non-cash stock based compensation expenses.
MannKind’s cash burden during the first quarter of 2013 was $33.5 million as compared to $25.9 million in the fourth quarter of 2012.
We expect investor focus to remain on Afrezza going forward. MannKind expects to present results on Afrezza in mid-August this year. The company plans to resubmit the New Drug Application (:NDA) for the candidate in late September or early October this year.
MannKind currently carries a Zacks Rank #2 (Buy). Other biopharma stocks, such as Jazz Pharmaceuticals (JAZZ), Santarus Inc. (SNTS) and Cubist Pharmaceuticals Inc. (CBST) are comparatively well placed. While Jazz Pharma and Santarus carry a Zacks Rank #1 (Strong Buy), Cubist Pharma carries a Zacks Rank #2 (Buy).
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