MannKind Corporation (NASDAQ: MNKD)
MannKind has a very interesting story to tell. As one of the most hotly debated stocks on the biotech market, price volatility is nothing new. However, their story goes far beyond that. Their story revolves around Afrezza. Those who love the stock blame it on Afrezza, and the same goes for those who hate it. Today, we’ll talk about the MNKD Afrezza story and why I think the story will have a very happy ending for the bulls in the market.
What Is Afrezza?
Afrezza is a new, inhaled before meal insulin. Essentially, diabetics see blood sugar spikes most commonly around meals. So, the insulin is taken before a meal is eaten to even out the body’s blood sugar. The big difference isn’t in when it’s taken, it’s how it’s taken. While any other insulin on the market requires an injection, Afrezza is inhaled and far less invasive. (Now you see where the money is!)
MNKD Stock Falls On Afrezza’s Bad Rep
This is where the amazing story takes a turn to drama. About 3 weeks after Afrezza was first launched, an analyst at Goldman Sachs decided that he was going to downgrade MannKind stock. The primary reasoning for the downgrade was simple… Afrezza simply hadn’t produced enough sales to be impressive to him.
So, there we were, three weeks after the launch of what could grow to become the cornerstone of change and stability for diabetics, but sales aren’t up to par. For some reason, I always thought that you needed a larger sample size than three weeks to determine how well, or poor for that matter, sales are doing. Nonetheless, the downgrade happened and MNKD paid the price for it.
This Is Where The Battle Begins
Ever since that fateful day, MannKind has struggled in the market. The epic battle between bulls and bears has seemingly brought this stock to it’s knees. However, there’s hope. You see, MannKind is proving that it’s not just any insulin. Physician feedback has been the reason for the most recent upgrades and movements in target price for the stock. Now, the company has announced that a larger dose will be available and they’re working to triple their production capacity for the drug.
How The Story Will End
Now, I know that MNKD bears are most likely going to get a bit upset at this view, but I suggest they listen; because here’s what’s coming. Between positive physician feedback, the creation of a larger dose, and the fact that MNKD is working to increase production capacity all point to one thing…Afrezza is about to boom! The way I see it, Afrezza is an amazing product and will continue to move through the market; helping diabetics to live a more comfortable life. As a result, MannKind will have no choice but to grow and so too will the stock!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!