MannKind Corporation (NASDAQ:MNKD) shares generated growth of 40% in Thursday’s trade and the stock is up 15% since the start of this year. Although no report accounts for a huge rally in Thursday’s trade, traders are focusing on Afrezza product sales. Its share volume increased to 25.9 million in today’s trade, compared to the average volume of 3.3 million. The MannKind stock currently trades around $3.79 per share.
The MannKind stock experienced significant pressure in the last three years, losing more than 90% of the price. In the last 52-weeks, its stock has hit the highest level of $6.96 per share and lowest trading point for this stock was $0.67 per share.
The company’s stock was under pressure in the last three years, amid its poor financial performance. In the latest quarter, the company generated revenue of $2.04 million, representing a decline of 98% compared to the same period last year. Its revenue also missed analysts’ consensus estimate by $1.84 million.
Moreover, MannKind generated a loss of $0.33 per share, missing analysts’ consensus estimate by $0.11 per share. The company’s cash generation potential was also not strong enough to support operational requirements. Therefore, the company continues to generate cash by issuing common stock shares.
On the other hand, Afrezza net revenue increased by 28% to $2.0 million over the previous quarter and soared 246% compared to the past year period. Its CEO stated, “We’ve been very busy both during and after the third quarter addressing our two top priorities, recapitalizing our balance sheet and growing Afrezza sales.”
On the cash generation side, the company is trying to fund its operations using different strategies. In the latest quarter, the company freed up almost 8.4 million shares, it generated close to $57.7 million of cash through the stock offering.
The company ended the latest quarter with the cash balance of $20.1 million excluding the cash from the stock offering. The cash burn rate in the latest quarter was also high at $23.3 million. Overall, investors are focusing on the company cash generation potential and the potential growth in Afrezza sales.
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