• Total Revenue: $72 million for Q2 2024, a 49% increase compared to Q2 2023.
• GAAP Net Loss: $2 million for Q2 2024.
• Non-GAAP Net Income: $14 million for Q2 2024.
• Tyvaso DPI Royalties: $26 million in Q2 2024, a 34% increase over Q2 2023.
• Collaboration and Services Revenue: $26 million in Q2 2024, a 132% increase over Q2 2023.
• Afrezza Net Revenue: $16 million in Q2 2024, a 20% increase over Q2 2023.
• V-GO Revenue: $4 million in Q2 2024, a 7% decline compared to Q2 2023.
• Cash and Investments: $262 million at the end of Q2 2024.
• Year-to-Date Revenue: $139 million, a 55% increase over the prior year period.

• Warning! GuruFocus has detected 8 Warning Signs with MNKD.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MannKind Corp (NASDAQ:MNKD) reported record revenue of $72 million for the second quarter of 2024, marking a 49% increase compared to the same period in 2023.
• The company achieved a significant milestone with the fast track designation by the FDA for clofazimine inhalation suspension, indicating promising progress in its pipeline.
• Afrezza sales grew by 20% in Q2 2024 compared to the previous year, driven by volume growth and a price increase.
• MannKind Corp (NASDAQ:MNKD) ended the quarter with a strong balance sheet, having reduced debt and dilution to shareholders by paying down convertible debt with cash and stock.
• The company has a robust pipeline with several promising candidates, including nintedanib DPI and INHALE-1, with key data readouts expected in the near future.

Negative Points

• Despite record revenue, MannKind Corp (NASDAQ:MNKD) reported a GAAP net loss of $2 million for the second quarter of 2024.
• The company experienced a decline in V-GO sales, which fell by 7% in Q2 2024 compared to the previous year, reflecting lower demand.
• MannKind Corp (NASDAQ:MNKD) faces challenges in the competitive market for its pipeline products, with the need to demonstrate improved efficacy and tolerability.
• The company is still in the early stages of site activation and patient enrollment for its clofazimine inhalation suspension trial, which could impact timelines.
• There is uncertainty regarding the potential impact of new data on Afrezza sales growth, with significant growth expected more realistically in 2025.

Q & A Highlights

Q: How are you thinking about IP and revenue runway for your pipeline candidates, and how well protected is your Technosphere technology? A: Technosphere's IP extends into the 2030s, with Tyvaso's IP potentially reaching the 2040s. Clofazimine has QIDP and orphan designation, extending its IP to 2039-2040. We feel confident about our IP protection for the next decade and a half, assuming no further innovations.

Q: Can you provide more details on the 201 update expected in Q4, including patient data and next steps? A: We've completed the first three dosing cohorts with no major findings. The next phase involves multiple ascending doses, with results expected in Q4. We'll assess cough tolerability, bronchospasm, and GI toxicity. These results will guide our Phase 2/3 design discussions with the FDA.

Q: Regarding the ICoN-1 Phase 3 design, can you comment on the powering assumptions for the six-month primary endpoint and interim analysis? A: The trial is designed with a dual primary endpoint in the US, focusing on quality of life and sputum. The interim analysis on 100 patients will assess futility but not superiority. The study is approximately 90% powered, with plans to adjust patient numbers if necessary.

Q: What feedback have you received from ADA regarding INHALE-3 results, and how do you see this impacting Afrezza sales growth? A: Feedback has been positive, with increased confidence among high prescribers. We expect some impact in Q4, but significant growth is anticipated in 2025. The pediatric data in Q4 will be crucial for future growth, potentially leading to a high-double-digit increase.

Q: Can you discuss the activation and entrenchment of sites for clofazimine inhalation and how this shapes your confidence in the program? A: We've activated about 10 sites, with more expected in September. Feedback has been positive, and we're pre-screening patients. The trial is progressing well, with interest from top investigators, and we feel confident about recruiting patients soon.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.