MannKind saw a significant rise in revenue thanks to its product Afrezza, but its net loss in the second quarter of fiscal year 2021 also rose significantly as the company tried to pay down its debt.
The Westlake Village biotech company released its earnings after the markets closed on Aug. 11. It opened the next day down 7.3%, to $3.98, but recovered the loss and more in the following days, with shares closing at $4.10 on Aug. 16.
MannKind, which develops drugs and treatments for those suffering from diabetes and pulmonary arterial hypertension, delivered revenue of $23.3 million in the second quarter of 2021, a 54% rise from the same quarter a year earlier.
Afrezza, an inhaled insulin treatment for patients with type 1 and type 2 diabetes, drove that growth, accounting for $10.1 million in revenue, a 45% increase year-over year.
Afrezza’s gross profit for the quarter ended June 30 was $5.6 million compared to $3.3 million in the same quarter last year, a 68% increase driven by higher Afrezza revenue and increased manufacturing activities, partially offset by a $2 million fee, according to the company.
But MannKind’s net loss grew from $10.3 million in the first quarter of 2020, or 5 cents per diluted share, to $35.5 million, or 14 cents per diluted share.
This spike in net loss was primarily due to a non-cash loss on extinguishment of the Mann Group convertible note of $22.1 million.
Rising research and development costs as well as rising general administrative costs also led to the rise in net loss.
MannKind ended the quarter with $201.4 million in cash and cash equivalents after the company saw the issuance of $230.0 million of 2.5 % senior convertible notes in the first quarter of 2021.