MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation has had a rough go in the market over the past year, and for good reason. The company went through its first launch of its first approved product. Unfortunately, sales simply weren’t what they could have been. With low sales volume, the company’s revenue and earnings fell short. Soon, the stock was tanking. However, there is one thing that I believe can send this stock over the top. That is strong sales of Afrezza. The good news is that this really isn’t out of reach for MNKD. Today, we’ll take a look at the last launch, what the company is doing now, and what we can expect to see from the stock moving forward. So, let’s get right to it…
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The Last Afrezza Launch Sank MNKD Stock Price
There’s no denying that the last launch of Afrezza was absolutely horrible, and the bears will point that out in every conversation. So, before we get to what’s changed, lets talk about why the last launch was so bad.
Shortly after hearing the news of approval from the FDA, MannKind investors learned that the company had contracted with Sanofi, a French pharmaceutical company, for the commercialization of the treatment. This, in my opinion, was a big mistake.
The truth is that Sanofi has its own competing product. Therefore, if they did great with the Afrezza launch, they would be making MNKD investors happy, but could cost themselves in the long run. Throughout the first launch of Afrezza, investors sat on the sidelines asking questions. When will we see commercials, when will we see radio ads, when will we see any ads at all?
It wasn’t until the late stages of commercialization that it seemed like Sanofi was doing anything at all. By this time, sales were horrible and MNKD was sinking in the market. Not to mention, the little bit the company did simply wasn’t enough to boost sales.
So, here we are, more than a year after the approval of Afrezza. Unfortunately, the Sanofi-led commercialization simply didn’t work. Sales were horrible and MannKind stock is now sitting at about 1/7 of the price that it reached last year.
There’s A Silver Lining Here
While the fact that MNKD sank due to poor sales volume of Afrezza is horrible, there is a silver lining here. You see, in January, it was announced that the agreement between Sanofi and MannKind was coming to an end. This was great news.
As a result of the canceled agreement, MNKD had rights to sell its product once again. For the next several months, the company planned the commercialization process, and now, we’re right in the first stages.
This time around, I believe that sales will be great. The reality is that, this time around, MNKD is in charge. Who’s better suited for the job than the one company that has the most to gain and the most to lose? Over the past several months, the company has compiled a dedicated sales force, created presentations to help with sales, and more. They’ve even increased sample sizes and created titration packs to sell the product.
Where Do We Go From Here
From here, we wait. While I do take a bullish stance, I will say that no one, not even the bulls, knows how well or how poorly the second launch of Afrezza will go. I am expecting to see good things, but the proof will be in the sales. With that said, as sales reports become available, it’s going to be incredibly important to watch them closely. As soon as sales start to rise, MNKD is likely to explode upward.
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