Narrower-than-Expected Loss at MannKind (CBST) (JAZZ) (MNKD) (SNTS)

Zacks

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.

Our View

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).

CUBIST PHARM (CBST): Free Stock Analysis Report

JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report

MANNKIND CORP (MNKD): Free Stock Analysis Report

SANTARUS INC (SNTS): Free Stock Analysis Report

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