Split with Sanofi results in $178.8M revenue for MannKind in 2016
Published 1:12 pm, Monday, March 20, 2017
DANBURY — MannKind Corp. posted quarterly earnings of $12.4 million and full-year earnings of $178.8 million as the company reported financial results for the fourth quarter and full year ended Dec. 31.
The quarterly earnings included $10.2 million from insulin sales to Sanofi, and yearly earnings included $170 million in revenue deferred from the collaboration with Sanofi. Net income for the fourth quarter was $54 million. Income for the year was $125.7 million compared with a loss of $368.4 million in 2015.
MannKind had partnered in 2014 with Sanofi to market its main product Afrezza, an inhaled insulin to treat diabetes, but Sanofi severed ties after Afrezza sales did not meet its expectations. MannKind is now marketing Afrezza in-house. It announced in February new packaging and purchase options for the drug.
Under the terms of the separation agreement, Aventisub, an affiliate of Sanofi, forgave a $71.56 million loan balance owed by MannKind.
In February, MannKind received $16.7 million from a real estate sale in Valencia, Calif.
Research and development expenses for MannKind were $1.6 million for the fourth quarter of 2016, compared to $6.2 million in the fourth quarter of 2015. The drop of 74.2 percent is primarily due to decreased collaboration development work.
Research and development costs for 2016 were $14.9 million compared to $29.7 million for 2015, a decrease of 49.8 percent, primarily due to reduced expenses associated with a reduction in workforce.
On March 1, following stockholder approval, the company's board of directors approved a 1-for-5 reverse stock split, reducing the number of shares from 700 million to 140 million.