MannKind Corporation (NASDAQ: MNKD) is having an incredibly strong start to the investing year in today’s trading session, and for good reason. The company has surpassed a key mark when it comes to Afrezza prescriptions. Today, we’ll talk about the prescription numbers, what we’re seeing from the stock, and what we’ll be watching for with regard to MNKD ahead.
MNKD Surpasses The 500-Prescriptions-In-A-Week Mark
As mentioned above, MannKind is having an incredibly strong start to the year today after releasing updated Afrezza prescription data. With the release, investors learned that Afrezza prescriptions finally surpassed the mark signifying 500 prescriptions in a week. In fact, this is the first time since the company has had full rights to commercialize the drug and since Sanofi (NYSE: SNY) reached this mark in December of 2015.
This is overwhelmingly big news. While it has taken some time, the company reached a key milestone that helps to improve its amount of money earned per prescription. Not to mention, revenue ran higher as the number of cartridges included in each prescription rose, leading to a higher cost per prescription. As a result, retail sales came in around $650,000. At the moment, estimations surrounding gross sales sit around $370,000 and net sales sit around $251,000.
While this data proved to be overwhelmingly positive, MNKD isn’t quite out of the woods just yet. At the end of the day, the company still has a very high cash burn rate at around $24 million per quarter. With only $20 million cash on hand, at the rate of Afrezza prescription growth we are seeing, the company isn’t going to have enough money to stay alive for too much longer.
Considering this, MNKD is likely to be in desperate need of financing, and relatively soon. In situations like this, we often see dillutive moves as a way to get a company out of a bind. Considering that MannKind Corporation will need to raise funds soon, it would a mistake to count coming dilution out.
What We’re Seeing From The Stock
One of the first things that we learn when we start to dabble in the market is that the news causes movement. Any time a publicly-traded company releases news, we can expect for the market to have a reaction. With strong sales numbers out of MNKD, investors seem to be ignoring the cash issue for the moment and running on excitement surrounding the milestone. As a result, we’re seeing strong gains. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (2:09), MNKD is trading at $2.62 per share after a gain of $0.30 per share (12.93%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MNKD. In particular, we’re interested in following the story surrounding Afrezza and we’re going to be watching for some financial solutions to be announced relatively soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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