MannKind Corporation (MNKD) Stock: Investors Prepare For Dilution

MannKind Corporation (NASDAQ: MNKD) has struggled in the market as of late, and those declines seem to be continuing. At the end of the day, the company is reeling from its inability to increase sales of Afrezza. Today, we’ll talk about what’s happening, what we’re seeing from the stock, and what we’ll be watching for with regard to MNKD ahead.

What’s The Deal With MNKD

MannKind’s claim to fame is Afrezza, their fast-acting inhaled insulin. Unfortunately, the treatment hasn’t seen the uptake that many were expecting to see. Nonetheless, investors recently got a breath of fresh air when the company announced that it has received approval for a label change.

The new label includes further instructions for both patients and prescribers. It was hoped that these instructions would improve sales while helping patients and make them want to renew their prescriptions. However, most recent numbers show that this isn’t the case.

In fact, most recent sales numbers show that sales of Afrezza are starting to flatten out. This is horrible news because the company simply won’t be able to survive without growth in Afrezza sales.

As a result, investors seem to be preparing for some bad news with regard to MNKD. Considering the flattening Afrezza sales, the company is likely to have to raise money again relatively soon. Of course, in doing so, dilution is going to be a key source for concern. Nonetheless, with sales projected to bring in only $25.7 million and a cash burn of $23 million last quarter, things just aren’t looking good on the financial side.

What We’re Seeing From The Stock

As mentioned above, MannKind isn’t having the best of days in the market today. As investors prepare for the dilution that will likely take place in early 2018, the stock is taking a turn for the worse. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:58), MNKD is trading at $2.39 per share after a loss of $0.17 per share (6.64%) thus far today.

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What We’ll Be Watching For Ahead

Moving forward, teh CNA Finance team will continue to keep a close eye on MNKD. In particular, we’re interested in following the story surrounding Afrezza sales and hope that the company can find a way to lift these numbers. We’re also watching for whatever creative financing the company comes up with ahead to solve their financial blues. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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