MannKind Corporation (NASDAQ:MNKD) has achieved a bit of a milestone by recording script sales more than 300 for the first time since it re-launched Afrezza in July. Its lead candidate Afrezza closed the second quarter with script sales coming at 266, and in the last 14 weeks this number has surged to 305. This indicates that the sales growth stands now at averaged 2.79 new scripts per week.
The highlights
The recent data reflects some positive indications in new scripts, which have moved to 152 from 107. However, that is counterbalanced in refills dropping that declined to 153 from 159. Essentially, the flatness of the total sales continues to be a big concern. On a QoQ basis, the company after a long time is witnessing the current quarter outpacing the previous quarter.
The first week in 4Q2016 is outpacing 41% of what was reported in the first week of 3Q2016. While these numbers are positive, the fact continues to be that sales are advancing slower than what is required to deliver equity growth or to enable the street to trust in the prospects of Afrezza.
The scope
On a YoY basis, the numbers are still far-away from the expected sales of Afrezza. Sales in 4Q2016 are moving 46% behind compared to what was reported in 4Q2015. It doesn’t seems that MannKind can report positive YoY sales metrics until next year. On a positive aspect, the YoY chart does confirm that sales have been moving above the line for last few weeks. The only concern is whether this pace of sales can surge quickly enough to meet the street expectations.
From a cash viewpoint, money and time are running low. Going by market expert’s projection, MannKind has nearly $30 million left in cash. With cash usage of $10 million in a month, and average revenue, the time frame during which the firm can act is diminishing quickly. MannKind has a fair credit line that can be put to use for satisfying specific debt holders. However, the fact that cash situation remains dire cannot be ignored.
