MannKind Q3 Earnings Call Highlights

Key Points

• Revenue increased 24% to $101.9 million in the third quarter, though MannKind posted a $23.2 million net loss. Management expects GAAP and non-GAAP profitability in the fourth quarter and annual profitability in 2027.
• FUROSCIX ReadyFlow is gaining traction: about 75% of shipments had shifted to the new version by late October, and prescriptions rose roughly 56% in the six weeks after launch. Management expects fourth-quarter FUROSCIX revenue near $38 million.
• Pediatric Afrezza adoption is expanding, with children accounting for about one-quarter of prescriptions, while the company plans to refocus on its underperforming adult business. MannKind also expects a first-half 2028 data readout from its inhaled nintedanib study for idiopathic pulmonary fibrosis.

MannKind NASDAQ: MNKD expects to return to profitability in the fourth quarter after reporting higher third-quarter revenue and a net loss, as the company’s FUROSCIX ReadyFlow and pediatric Afrezza launches gain traction.

Revenue rose 24% to $101.9 million from $82.1 million a year earlier, Chief Financial Officer Chris Prentiss said on the company’s Nov. 5 earnings call. MannKind reported a net loss of $23.2 million, compared with net income of $8 million in the third quarter of 2025.

Prentiss said the company expects fourth-quarter profitability on both a GAAP and non-GAAP basis and annual profitability in 2027. He cautioned that profitability next year would not necessarily begin in the first quarter, adding that the company remains focused on revenue growth while maintaining relatively stable investment in expenses.

ReadyFlow conversion accelerates

FUROSCIX generated $22.4 million in third-quarter net revenue. MannKind began shipping the ReadyFlow version in mid-September, and roughly 75% of FUROSCIX shipments had shifted to it by late October, Chief Executive Officer Mike Castagna said.

Prentiss estimated that the transition reduced third-quarter revenue by about $3 million, as patients and prescribers moved toward ReadyFlow before it was available for dispensing and launch inventory in the channel was limited. He said ReadyFlow has a meaningfully lower cost of goods than the older On-body Infusor.

Castagna said prescriptions grew about 56% in the six weeks after launch compared with the preceding six weeks. Much of the growth came from new patients and prescribers, including physicians in nephrology and cardiology, he said.

Management expects fourth-quarter FUROSCIX revenue to roughly match the first half of 2026, with Castagna putting the estimate near $38 million. He said longer-dated inventory was expected to become available the following week, potentially helping address prescribers’ and patients’ concerns about short-dated supply.

Castagna also said MannKind expects to increase its sales force footprint and promotional efforts going into 2027. He noted that Medicare deductible resets can be a significant out-of-pocket barrier for FUROSCIX patients at the start of the year.

Afrezza pediatric launch drives prescriptions

Afrezza third-quarter net revenue increased about 5% year over year to $19.3 million, while total prescriptions rose roughly 17% from the second quarter. Castagna said pediatric patients now account for about one in four Afrezza prescriptions.

More than 2,000 pediatric patients have been treated since launch, with roughly 600 pediatric prescribers, Castagna said. All 60 of MannKind’s priority pediatric institutions had prescribed Afrezza, he added.

Prentiss said prescription growth is running ahead of revenue because of a pediatric access program that continues through the end of 2026. More than half of pediatric prescriptions are already reimbursed by insurance, he said, and converting the rest to paid coverage is a priority for 2027. Castagna said the company does not intend to continue its $35 cash-pay program next year.

Castagna acknowledged that the adult Afrezza business has underperformed this year, citing field-team turnover, competition from new insulin pumps and reduced promotion as resources shifted to the pediatric launch and FUROSCIX. He said MannKind plans to refocus on adults while continuing to support pediatric adoption.

Collaboration revenue and pipeline

Royalty revenue rose 12% year over year to $37.5 million, driven by Tyvaso DPI, which MannKind manufactures for United Therapeutics. Collaboration and services revenue declined to $19.4 million from $26.5 million; Prentiss attributed quarterly fluctuations to delivery timing and said full-year collaboration and services revenue is expected to be consistent with 2025.

For the first nine months of 2026, total revenue rose 27% to $301.4 million, while MannKind recorded a $58.9 million net loss, compared with net income of $21.8 million a year earlier. Prentiss said a significant portion of the 2026 GAAP loss was noncash and related to the scPharma acquisition. MannKind also closed a $50 million private placement that funded a $45 million contingent value right payment triggered by ReadyFlow approval.

In its pipeline, MannKind expects a first-half 2028 data readout from INFLO-2, a global phase 2 study of inhaled nintedanib in patients with idiopathic pulmonary fibrosis. Castagna said the company reduced the planned study size to about 150 patients from 220 and is activating sites under an updated protocol.

Castagna said an upcoming meeting with the Food and Drug Administration could determine whether U.S. sites are added, potentially accelerating the study. He said there will be no interim analysis, and the trial will assess safety and tolerability along with early lung-function measures.

MannKind also anticipates $15 million in milestones from its ralinepag DPI program with United Therapeutics in 2027. Castagna said the specific milestone triggers have not been disclosed and that MannKind would receive a 10% royalty on the product.

About MannKind (NASDAQ:MNKD)

MannKind Corporation, a biopharmaceutical company, focuses on the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases in the United States. It offers Afrezza, an inhaled insulin used to improve glycemic control in adults with diabetes, and the V-Go wearable insulin delivery device, which provides continuous subcutaneous infusion of insulin in adults. The company's product pipeline also includes Tyvaso DPI (Treprostinil), an inhalation powder for the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease; MNKD-101, a nebulized formulation of clofazimine, for the treatment of severe chronic and recurrent pulmonary infections, including nontuberculous mycobacterial lung disease; MNKD-201, a dry-powder formulation of nintedanib, for the treatment of idiopathic pulmonary fibrosis (IPF).

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