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Post by BD on May 9, 2018 15:05:40 GMT -5
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Post by liane on May 9, 2018 15:07:26 GMT -5
I can't believe you beat sla!
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Post by traderdennis on May 9, 2018 15:08:42 GMT -5
wow, 2.2 million in additional revenue, but cogs when up 1.5 million. 5.2 million additional expense in head count. so to get an extra 2.2 million it costs 6.7 million. Negative contribution revenue. Not good.
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Post by sportsrancho on May 9, 2018 15:11:23 GMT -5
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Post by centralcoastinvestor on May 9, 2018 15:14:42 GMT -5
No surprises in my opinion. It is interesting that they emphasized that the STAT study was accepted by the ADA as all of us already know. I think the STAT study is going to raise a few eyebrows at the ADA when it is released. Having mentioned again in the lead bullets makes me believe the results are impressive.
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Post by harryx1 on May 9, 2018 15:17:31 GMT -5
No surprises in my opinion. It is interesting that they emphasized that the STAT study was accepted by the ADA as all of us already know. I think the STAT study is going to raise a few eyebrows at the ADA when it is released. Having mentioned again in the lead bullets makes me believe the results are impressive. Yep.
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Post by sla55 on May 9, 2018 15:22:11 GMT -5
WESTLAKE VILLAGE, Calif., May 09, 2018 (GLOBE NEWSWIRE) -- MannKind Corporation(NASDAQ:MNKD) today reported financial results for the first quarter ended March 31, 2018. “We started 2018 with solid growth of 184% in quarterly Afrezza sales year-over-year, which reflects our progression as a fully-integrated commercial enterprise and our focused promotional efforts,” said Michael Castagna, Chief Executive Officer of MannKind Corporation. “We look forward to new scientific data releases at the American Diabetes Association scientific meeting in June to help clinicians better understand the unique benefits of this innovative product.”
For the first quarter of 2018, Afrezza net revenue was $3.4 million compared to $1.2 million for the first quarter of 2017, an increase of $2.2 million or 184%. On January 1, 2018, the Company adopted ASC 606, the new revenue recognition standard, under which it recognizes revenue as it sells product to wholesale distributors. Previously, it recognized sales on the basis of a model that estimated the sale of Afrezza to patients. As of January 1 2018, it reduced $3.4 million in previously deferred revenue (that reflected inventory in sales channels) to zero and also made a corresponding decrease to accumulated deficit. A comparison of the condensed consolidated financial statements with and without the adoption of ASC 606 can be found in the Notes to Condensed Consolidated Financial Statements in the form 10-Q for the quarter ended March 31, 2018. Total revenue for the first quarter of 2018 was $3.4 million compared to $3.0 million for the first quarter of 2017, an increase of $0.4 million or 15%. This increase was primarily due to the increased net revenue from Afrezza, partially offset by the sale of bulk insulin of $1.7 million in the first quarter of 2017.
Cost of goods sold for the first quarter of 2018 was $4.0 million compared to $2.5 million for the first quarter of 2017, an increase $1.5 million or 57%. This increase was primarily the result of higher Afrezza sales compared to the same period in the prior year together with inventory write-offs of $0.6 million in the quarter ended March 31, 2018. There were no inventory write-offs in the same period of the prior year.
Research and development (R&D) expenses for the first quarter of 2018 were $2.6 million compared to $3.1 million for the first quarter of 2017, a decrease of $0.5 million or 16%. This decrease reflected a $1.1 million reallocation of salary and salary-related expenses from R&D in 2017 to selling, general and administrative expenses (SG&A) in 2018) associated with personnel who were engaged in R&D activities in 2017 and transitioned to providing medical affairs and pharmacovigilance support to Afrezza commercial activities in 2018. The decrease in R&D expenses in the first quart of 2018 was offset by increased outside contract research organization spending on clinical trials of $0.5 million.
SG&A expenses were $20.6 million for the first quarter of 2018 compared to $15.4 million for the first quarter of 2017. The $5.2 million or 34% increase was primarily due to $5.7 million in headcount-related expenses from additional field force and G&A support functions (inclusive of the $1.1 million reallocation from R&D). In addition, there was a charge of $0.8 million in the first quarter 2018 for costs related to transitioning corporate support functions from Danbury, CT to Westlake Village, CA to create a more efficient back-office operation. Partially offsetting these increases were a $0.5 million decrease in spending on outside sales efforts that were transitioned in-house, $0.6 million lower consulting costs, and $0.2 million due to lower facility costs.
The net loss for the first quarter of 2018 was $30.4 million, or $0.25 per share compared to a $16.3 million net loss in the first quarter of 2017 or $0.17 per share. In addition to the variances described above which impacted the net loss in 2017, there was a favorable change due to a non-cash gain recognized in the first quarter of 2017 for the decrease in the fair value of warrant liability of $6.6 million which did not have a corresponding first quarter 2018 amount as the warrants were exchanged for shares and cancelled in October 2017.
Cash, cash equivalents and restricted cash at March 31, 2018 decreased to $27.2 million compared to $48.4 million at December 31, 2017, primarily due to net cash used in operating activities of $21.7 million in the first quarter 2018 offset by $0.5 million of net proceeds from the at-the-market equity offering facility. Subsequent to the quarter end in early April, the Company raised $26.3 million of net proceeds from a registered direct offering of 14 million shares of common stock and warrants at a purchase price of $2.00 per share and accompanying warrant exercisable at $2.38 per share.
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Post by otherottawaguy on May 9, 2018 15:37:12 GMT -5
Doing a comparison of Q1 2017 to 2018:
2017 Q1 loss of 16.3M or -$0.17/share (share count 95.88M) 2018 Q1 loss of 30.4M or -$0.25/share (share count 121.6M)
Comparing the quarters using a common share count:
30.4M (2018 Q1 loss) / 121.6M (2017 share count) = -$0.317/ share
Guess this is a beat of Zacks -$0.22, sorry that it just in the wrong direction.
OOG
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Post by digger on May 9, 2018 15:52:47 GMT -5
wow, 2.2 million in additional revenue, but cogs when up 1.5 million. 5.2 million additional expense in head count. so to get an extra 2.2 million it costs 6.7 million. Negative contribution revenue. Not good. Spencer Osborne says, "Simply stated, Q1 has benefits that subsequent quarters will not have because of the accounting shift." I'm afraid i don't quite understand his explanation. How much of today's reported revenue was due to whatever it is he is talking about?
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Post by peppy on May 9, 2018 15:57:35 GMT -5
shout box is open
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Post by digger on May 9, 2018 16:13:56 GMT -5
I don't quite get this -- "Research and development (R&D) expenses for the first quarter of 2018 were $2.6 million compared to $3.1 million for the first quarter of 2017, a decrease of $0.5 million or 16%. This decrease reflected a $1.1 million reallocation of salary and salary-related expenses from R&D in 2017 to selling, general and administrative expenses (SG&A) in 2018) associated with personnel who were engaged in R&D activities in 2017 and transitioned to providing medical affairs and pharmacovigilance support to Afrezza commercial activities in 2018."
pharmacovigilance -- "the practice of monitoring the effects of medical drugs after they have been licensed for use, especially in order to identify and evaluate previously unreported adverse reactions."
Why do they need to take people out of R&D to do "pharmacovigilance"? What exactly do they do?
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Post by digger on May 9, 2018 16:25:58 GMT -5
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Post by digger on May 9, 2018 16:28:19 GMT -5
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Post by chuck on May 9, 2018 19:10:40 GMT -5
wow, 2.2 million in additional revenue, but cogs when up 1.5 million. 5.2 million additional expense in head count. so to get an extra 2.2 million it costs 6.7 million. Negative contribution revenue. Not good. Spencer Osborne says, "Simply stated, Q1 has benefits that subsequent quarters will not have because of the accounting shift." I'm afraid i don't quite understand his explanation. How much of today's reported revenue was due to whatever it is he is talking about? Bro - That's a rabbit hole you don't want to go down. nuff' said.
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Post by dreamboatcruise on May 9, 2018 19:37:40 GMT -5
I don't quite get this -- "Research and development (R&D) expenses for the first quarter of 2018 were $2.6 million compared to $3.1 million for the first quarter of 2017, a decrease of $0.5 million or 16%. This decrease reflected a $1.1 million reallocation of salary and salary-related expenses from R&D in 2017 to selling, general and administrative expenses (SG&A) in 2018) associated with personnel who were engaged in R&D activities in 2017 and transitioned to providing medical affairs and pharmacovigilance support to Afrezza commercial activities in 2018." pharmacovigilance -- "the practice of monitoring the effects of medical drugs after they have been licensed for use, especially in order to identify and evaluate previously unreported adverse reactions." Why do they need to take people out of R&D to do "pharmacovigilance"? What exactly do they do? Crunching numbers on the Adverse Events data reported to FDA vs prior trial data to see if they find any unexpected signals? That's likely not a full time job for many. A person can report time into different expense categories, so this doesn't mean people have necessarily stopped R&D work entirely to switch over to any one of these other areas.
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