MannKind Corporation (NASDAQ:MNKD) Fails to Meet Sales Estimates of Afrezza

MannKind Corporation (NASDAQ:MNKD) announced that its inhaled insulin drug, Afrezza, generated $1.1 million in sales in France. Unfortunately, it is the distributor, Sanofi, who gets to make the most of it. Analysts had hoped that the drug would make $3-$4 million in sales. The stock of the company has been experiencing a lot of ups and downs in the past two months, due to missed estimates in sales.

MannKind is a biopharmaceutical company that concentrates on development of inhaled therapies to treat diabetes. The company’s leading drug Afrezza was approved in June 2014, but has failed to cope with sales estimates. The drug is known to leave the system quickly, reducing the chances of excessive glucose removal from the blood. Although the company CEO, Alfred Mann, has been known to have founded and run 14 different companies in his career, the investors are starting to lose hope.

The worldwide market for Afrezza is composed of around 387 million patients and growing. However, the distribution agreement with Sanofi means that MannKind gets just 35% of the share in sales. Fortunately, the company is also entitled to milestone payments of up to $75 million, if certain targets are met. Even though Afrezza enjoys several benefits over its counterparts, it has still failed to impress in terms of sales. One of the reasons for failure could be improper marketing.

MannKind had failed to generate any revenues at the end of FY2014, due to the absence of drugs on its portfolio. Additionally, millions were spent in research, development and marketing of the drug. The net loss amounted to $198 million, with this year failing to show promise, until now. Sanofi, however, remains optimistic about the drug, stating that the current campaign had focused on building awareness about the product and it has yet to show potential.

MannKind Corporation (NASDAQ:MNKD) closed at $3.81, after losing 5.22% on May 8. The company has 409.1 million shares being traded in the market, with a 52-week range of $3.52-$11.48.

About the Author

Adam is a staff reporter for US Markets Daily Publications & Media, covering foreign affairs and domestic policy.

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