MannKind Corporation (NASDAQ:MNKD) reported that it will host shareholder update on February 1, 2017 after the market hours. This could comprise some promising news, but the main objective for this call can be to discuss NASDAQ compliance issue and a possible reverse split. The company’s shareholders have reason to be nervous these days. Sales of Afrezza have not been encouraging in 2017 so far with nearly 225 scripts purchased for the week closing January 20.
MannKind is low on cash with nearly 6-7 months of funds assuming cash burn of $10 million per month. It is outside of compliance required to be listed on NASDAQ and could be forced to plan for a reverse split to rectify that issue. The firm is losing leverage with each day. This turns deals harder to convert in favorable terms, and unlocks the way for “fire-sale” type measures.
The factors above are all real and concerning. There are some prospective positives to contemplate. The issue with this list is that they need a lot of faith and hope. The agreement with Receptor Life Science could advance further and result in some additional milestone outlays. Realistically, this is possibly a slow moving procedure.
A partnership deal for overseas or United States could be run into Afrezza. Realistically, the associate would have strong saying in discussions, and with poor sales in the United States in 2017, there may not be numerous willing partners.
A deal could be finalized on using Technosphere for other medications. This could have the potential, but shareholders should consider that the Receptor Life Sciences agreement failed to get much up-front cash.
MannKind can plan to get an extension on the Nasdaq compliance issue. Shareholders should know that the company doesn’t qualify for an extension, but can try to get the requirements renounced. Analysts consider that the firm may not attempt for an extension.