On Wednesday, Oppenheimer maintained its Outperform rating on MannKind (NASDAQ:MNKD) Corporation (NASDAQ:MNKD) and increased the price target to $6.50 from the previous $5.50. The adjustment comes after the company reported fourth-quarter sales that exceeded both the firm's and the Street's expectations.
MannKind's fourth-quarter sales reached $58.5 million, surpassing the anticipated $52.8 million by Oppenheimer and the $53.5 million consensus estimate. The outperformance was primarily attributed to higher Collaboration/Services sales, which included Tyvaso DPI volume. In the diabetes segment, sales of Afrezza and V-go slightly exceeded forecasts, with Afrezza generating $15.5 million, marking a 29% year-over-year increase, and V-go bringing in $4.7 million despite a 13% decline.
The company also reported a stable royalty income from Tyvaso DPI, noting an increase to $21 million in the fourth quarter from $20.2 million in the third quarter. Additionally, on January 2, 2024, MannKind sold a 1% stake of its total 10% Tyvaso DPI royalty to Sagard Healthcare for $150 million in cash.
MannKind's operational expenses leverage remained robust in the fourth quarter, contributing to the company's second consecutive profitable quarter. Looking ahead, the endocrine pipeline is garnering attention, with initial data from the INHALE-3 study expected to be released at the Advanced Technologies & Treatments for Diabetes (ATTD) conference next week. Furthermore, top-line data and primary endpoints for a 17-week study are anticipated to be presented at the American Diabetes Association (ADA) meeting in June 2024.
The company is also progressing with its orphan lung disease treatment, MNKD-101, which is on schedule to commence phase-3 trials in the second quarter of this year.
InvestingPro Insights
Following Oppenheimer's positive outlook on MannKind Corporation (NASDAQ:MNKD), InvestingPro data further highlights the company's financial dynamics. MannKind's market capitalization stands at approximately $1.08 billion, reflecting investor confidence in the company's market position. Despite challenges in profitability, with a negative P/E ratio of -32.57 for the last twelve months as of Q3 2023, the company has shown a remarkable revenue growth of 131.61% during the same period. The substantial increase in revenue is a testament to the company's expanding business and may underpin future financial performance.
InvestingPro Tips indicate that although analysts do not expect MannKind to be profitable this year, they do foresee sales growth. This aligns with the company's fourth-quarter sales outperformance, driven by its Collaboration/Services sales and diabetes segment products like Afrezza. Moreover, MannKind's liquid assets surpass its short-term obligations, suggesting a solid liquidity position that may support its operational activities and pipeline development, including the upcoming phase-3 trials for MNKD-101.
For investors looking to delve deeper into MannKind's financials and future prospects, there are additional InvestingPro Tips available at https://www.investing.com/pro/MNKD. To enhance your investing strategy with these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools at hand, investors can make more informed decisions based on the latest data and expert analysis.
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