What happened
Commercial-stage biotech MannKind (NASDAQ:MNKD) was a top choice of investors on the second day of the trading week. Tuesday saw MannKind's share price leap by almost 19%, making it stand out on a day when the S&P 500 index slumped by 0.4%.
So what
The reason for the stock's jump wasn't hard to tease out.
MannKind, which concentrates on developing treatments for endocrine and lung disorders, published its second quarter results that day.
The company's total revenue was $48.6 million, a vast improvement over the $18.9 million it earned in the same period of 2022. The net loss according to non-GAAP (generally accepted accounting principles) adjusted standards narrowed dramatically, coming in at $366 million ($0.00 per share) against the year-ago shortfall of over $29 million.
Analysts weren't forecasting such solid performance. On average, they were estimating MannKind would book just under $43 million on the top line and post an adjusted net loss of $0.04 per share.
The most notable jumps in revenue for MannKind during the quarter came from collaborations. Royalties from the company's partnerships brought in more than $19 million in the quarter, well up from the $304,000 in the same time frame last year.
Now what
MannKind has also effectively leveraged its two approved insulin treatments: the inhalable Afrezza and the V-Go patch. In the earnings release, it quoted CEO Michael Castagna as saying the company "optimized our commercial operations" supporting the two products. As a consequence, its endocrine business unit should become profitable starting next year.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.