MannKind Corp. posted a narrower third-quarter loss on Monday as the company winds down its research operations and prepares to start selling its Afrezza brand inhalable insulin.
The Valencia biotech reported a net loss of $36.5 million (-9 cents a share) in the third quarter ended Sept. 30, compared to $50.8 million (-17 cents) for the same quarter last year. The company does not yet have any products on the market that generate revenue.
Analysts on average expected a loss of 1 cent a share on revenue of $51 million, according to Thomson Financial Network.
The company said its research and development costs declined 30 percent in the quarter because of non-cash stock performance awards that were paid to employees last year and settled during the quarter.
MannKind received Food and Drug Administration approval in June to sell its Afrezza in the U.S. market. And, in late September, the company signed a worldwide marketing agreement with French drug maker Sanofi for Afreeza.
Under the agreement, MannKind will manufacture the drug at its plant in Danbury, Conn., while Sanofi will take responsibility for marketing and regulatory compliance. The agreement required Sanofi to make an upfront payment of $150 million with 10 days of the signing, but that was not reflected in the third-quarter report.
Shares closed down 17 cents, or 1.5 percent, to $5.84 on the Nasdaq.
American Homes 4 Rent reported on Monday third-quarter funds from operations that missed Wall Street expectations, as the company remains aggressive in expanding its housing portfolio.
The Agoura Hills single-family landlord reported FFO of $38.5 million (15 cents a share) for the quarter ended Sept. 30, compared to $35.3 million (15 cents) in the second quarter. The company does not have comparable numbers for the third quarter last year, as it was prior to going public. Revenue increased 17 percent to $110 million from the prior quarter.
FFO is a REIT metric that adds amortization and depreciation expenses into net income to get a better picture of cash flow. Analysts had expected FFO of 17 cents on revenue of $109 million, according to Thomson Financial.
On a net income basis, the company lost $12.8 million (-11 cents).
The company has yet to turn a profit since going public, as it has remained aggressive in growing its business, even as a lack of available stock and rising costs due to higher home prices are challenging the sector. Its total portfolio increased by 3,704 homes to 30,877 as of Sept. 30. The company said it leased 26,161 properties, an increase of 2,797 leased properties from June 30, 2014.