MannKind Corporation (NASDAQ:MNKD) has released its financial results for the third quarter and nine months ended September 30, 2020.
MannKind continues to execute well as Afrezza prescription increases
Michael Castagna, the CEO of the company, said that their employees have continued to execute in a challenging COVID-19 environment. Castagna said that as the company heads towards the end of 2020, the focus is on two main drivers of shareholder value. These include supporting healthcare providers to enhance Afrezza prescription and also supporting United Therapeutics in moving the TreT clinical program to completion, which included TreT clinical suppliers manufacturing.
In the quarter, the company reported total revenue of $15.4 million, with Afrezza sales in the US accounting for $7.3 million. Services and collaborations revenue generated $8.1 million. The company saw a 27% YoY increase in Afrezza sales in the US due to high product demand, price, and favorable blend of cartridges. MannKind completed its first Afrezza sale to its marketing partner in Brazil in Q3 last year for $0.7 million, but in Q3 2020, the company didn’t report any international sales. Notably, service and collaboration revenue dropped $0.1 million in Q3 2020 compared to a year ago.
Afrezza gross profit increased
MannKind reported an increase of $4.4 million YoY in Afrezza gross profit due to high Afrezza revenue coupled with the low cost of goods sold. This was mainly attributable to the $2.8 million amendment fees connected to its supply agreement in 2019. During the quarter, the company reduced promotional and marketing activities by $1.2 million. Also, there was a $0.8 million reduction in professional costs.
Similarly, the company reduced interest expense in the third quarter by $2.9 million, which was attributable to a milestone obligation of $3.4 million in Q3 2019. For the nine months, Afrezza’s gross profit increased by 416%, mainly due to high commercial product sales and low cost of goods sold. This was due to an amendment fee of $2.8 million related to last year’s insulin supply deal.