MannKind Corporation (NASDAQ: MNKD)
MannKind has been an incredibly interesting company to watch as of late. After the company announced that it would be canceling its agreement with Sanofi for the commercialization of Afrezza, the stock tanked. However, since then, we’ve seen relatively steady gains. Now, investors are pushing the stock further up as they await the investor conference that will be happening later today. Below, we’ll discuss what we’ve seen from MNKD, why I am bullish on the stock, and why I believe that we can expect to see incredibly strong gains in after-hours trading today following the investor conference call.
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What We’ve Seen From MNKD Over The Past Year
As mentioned above, MNKD has been an incredibly interesting stock to watch as of late. In late 2014, the company received approval from the FDA for Afrezza, an inhaled insulin. Soon, they contracted with Sanofi for the commercialization of the treatment. Unfortunately however, Sanofi delayed the commercialization process, sending the value of MNKD spiraling down out of control. In early January, it was announced that Sanofi and MannKind would be cutting ties, leading to even more losses. However, since the announcement of the agreement cancellation, we’ve seen gains as investors become more and more excited with regard to what’s coming next.
Why I’m Bullish On MannKind
I’ve held onto my bullish opinion on MNKD for quite some time, and for a very good reason. First and foremost, Afrezza is a treatment that’s much needed in the diabetes industry. After all, about 10% of consumers are afraid of needles. Not to mention, there are several people with jobs that don’t allow them access to public restrooms for insulin injections. And Afrezza is a great alternative to injections for children who suffer from diabetes. However, Afrezza isn’t the only reason I’m bullish on the stock.
Tecnosphere is the technology behind Afrezza and it is a key driver to bullish opinions surrounding MNKD. This is because there are several ways to use the technology. Essentially, any medication that currently requires an injection could soon be featured as an inhaled treatment from MNKD. The possibilities are endless!
Finally, I’m incredibly excited about the cancellation of the agreement between MNKD and Sanofi. The reality is that Sanofi was dealing with a major conflict of interest that led to delays. Now that MNKD is breaking the ties, they have the ability to market Afrezza on their own, and they have some great ideas for doing just that. One of the most interesting to me is Specialized Diabetes Care Centers, which is a very strong idea. In these centers, consumers will be able to get real-time diabetes care powered by Afrezza!
Why The Stock Is Likely To Climb After Hours Today
After the market closes, MNKD will be holding an investor conference, and I’m expecting this one to be a big one. The last time the company offered a presentation, Matthew J. Pfeffer was only days into his position as CEO and had already started to make big changes. Now, he is more than a month in, and we’re likely to hear more by way of confidence and strategy from him. At the moment, there are quite a few questions with regard to Afrezza, Technosphere, and the Sanofi cancellation. At this point, I believe that Pfeffer is going to clear up the cloudy air, leading to investor excitement. All in all, I’m very excited to see what happens tonight.
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What Do You Think?
Where do you think MNKD is headed moving forward and why? Let us know your opinion in the comments below!