MannKind Corporation (NASDAQ: MNKD)
MannKind has been a very interesting stock to watch over the past year. There’s no denying that the company has struggled. However, things may be changing in a big way. The declines that we’ve seen are the result of a botched launch of Afrezza, the company’s flagship product. Nonetheless, Afrezza Launch 2.0 is gearing up, and things are very different this time around. Today, we’ll talk about the previous launch and what went wrong, what is different this time around, and why I believe that MNKD will skyrocket from here. So, let’s get right to it…
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What Went Wrong With MNKD?
MannKind is focused on their flagship product known as Afrezza. The treatment is an inhaled insulin designed to treat diabetes that was approved in December of 2014. Shortly after the announcement that Afrezza received approval from the FDA, MNKD contracted out the commercialization of the treatment.
The commercialization of Afrezza was to be done by Sanofi. There was only one problem here. Sanofi had a competing product. If they were to properly commercialize Afrezza, they could realize losses on their own product. This conflict of interest led to a botched launch of the treatment. With little by way of outreach to physicians and consumers, and even less by way of advertising, Afrezza sales weren’t what they should have been. Unfortunately, MNKD stock fell dramatically as a result.
What’s Different This Time Around
While the previous launch of Afrezza left much to be desired, this time around is likely to be very different. In fact, there are four key differences between Afrezza launch 1.0 and Afrezza launch 2.0. Here they are:
- MNKD Is In Charge – First and foremost, as mentioned above, the previous launch was done by Sanofi. Because of a conflict of interest, it can be argued that Sanofi didn’t do very much to commercialize the product properly. However, this time around, MannKind is in charge. This is an important key because the success of MNKD as a whole largely hinges on the second launch of their flagship product. As a result, the company is going to be focused and goal-oriented, which, in my opinion, will lead to better results.
- Dedicated Sales Force – During the first launch, the sales force that Sanofi put together was laughable at best. However, this time around, MNKD has put together a sales force that is knowledgeable about the product, driven, and dedicated to the product’s success.
- Relationships – Over the past several months, we’ve heard quite a bit about the new relationships that MannKind has been building. One of the most important of these is a new partnership with JDRF, an organization focused on improving the lives of members of the diabetes community. This new partnership is focused on molding Afrezza as an insulin for the pediatric community. I believe that this is an incredibly strong play.
- Data – During the first Afrezza launch, there was definitely data available, however, not nearly as much as there is today. This data will likely be used by MNKD to better educate both physicians and patients.
With the four key points mentioned above, I couldn’t imagine that this launch will be a poor one. All in all, MNKD has set the stage for action that will likely lead to a strong sales volume for their flagship product.
I’m Expecting Big Gains To Come
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from MannKind. While the first launch of Afrezza didn’t go well, there are reasons that it went the way it did. Those issues have been addressed, and MNKD is moving forward with a strong second launch.
All in all, Afrezza is an incredible product. If it is geared toward the pediatric community as well as the members of the diabetic community that don’t have access to public restrooms in the workplace, we’re likely to see big sales numbers. After all, proper commercialization involves playing to the product’s strengths, and these are two of the biggest.
At the end of the day, MNKD is working to revolutionize the way diabetes is treated. They have come up with a way to make it less painful and, in a way, less embarrassing. Now, with strong commercialization plans in the running, it only makes sense that the product will sell well, leading to strong gains for the stock.
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What Do You Think?
Where do you think MNKD is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!
[Image Courtesy of Pixabay]