Westlake Village-based biotech company MannKind saw a slight bump in revenue in the first quarter thanks to its product Afrezza, but net losses continued to climb.
MannKind released its earnings after the markets closed on May 12. It ended the day down 8.6% and regained 0.25% on May 13, to close at $4.03.
MannKind, which develops drugs and treatments for those suffering from diabetes and pulmonary arterial hypertension, delivered revenue of $17.4 million, a 7% rise from the first quarter of 2020.
Afrezza, an inhaled insulin treatment for patients with type 1 and type 2 diabetes, accounted for nearly half of that revenue, at $8.1 million in the first quarter, a 1% rise from the same quarter a year earlier.
“What’s really important to look at is true demand growth in the marketplace,” Michael Castagna, CEO of MannKind, said during the company’s earnings call. “When you strip away inventory shifts from wholesalers, pull forward a patient’s prescriptions in their volume mix and price, you really show a true demand growth from 7.3 million to 8.8 million, or 21%, year over year.”
But net losses continue to mount for MannKind, which had a $57.2 million net loss in fiscal year 2020.
In the first quarter of 2021, MannKind had a net loss of $12.9 million, a 38% rise from the first quarter of 2020.
According to the company’s earnings release, the growth in net loss is primarily attributed to an increase in interest expense, selling, general and administrative expenses, and research and development expenses.
MannKind received a huge bump to its assets, however. The company now has $278.3 million in cash, cash equivalents and investments after it received $230.0 million gross proceeds from 2.5% senior convertible notes.
MannKind finished fiscal year 2020 with $67.2 million in assets including cash and cash equivalents.
“The cash received from the convertible debt offering has resolved at significant risk and uncertainties regarding sources of liquidity, which previously raised substantial doubt about the company’s ability to continue as a growing concern,” CFO Steven Binder said during the earnings call.