MannKind has had a tough time in the market recently, however, the rough time isn’t likely to last forever. There are several things that investors should keep in mind with regard to Afrezza when thinking about MNKD. Here they are…
Insurance Coverage Is Gearing Up
First and foremost, investors have been very concerned about sales recently. After all, Afrezza simply isn’t selling anywhere near the amount of prescriptions that investors would like to see. However, a big part of the sales issue has been coverage. But MannKind is expecting coverage to start very soon – and in a big way. Here’s what the CEO of the company recently had to say about it…
“Permanent formulary placement decisions have not yet been made by most plans. These decisions are typically made six to twelve months following the launch. The good news is that we are now in that period, and Sanofi’s discussions with managed care organizations are ongoing, and we expect the coverage and patient access to improve.”
Direct To Consumer Campaign Is In Action
Another factor involved in the small amount of sales of Afrezza has been advertising. In all reality, there has been none. However, that is changing very quickly. As a matter of fact, MannKind has started to roll out the Direct-to-Consumer advertising campaign. The campaign includes featured print ads for Afrezza in highly circulated media such as Time magazine, Diabetes Forecast, and several other media channels. This campaign should increase consumer awareness of the product and, thereby, increase sales.
Short Interest On MannKind Is Out Of Control
Finally, short interest is absolutely killing MannKind. Short interest is the amount of shares that are purchased and sold short in an attempt to make a profit off of declines. This is a way for manipulation to occur and can come with big consequences for any stock. Unfortunately for MannKind, short interest on the stock is way up. Currently, about 45% of shares are sold short which is an astronomical figure. However, the CFO of the company recently addressed the issue and provided investors with a way to protect themselves…
If any non-employee shareholders are unhappy about the effect of shorting on MannKind’s share price, I strongly encourage you to make sure you are not enabling the practice. Talk to your broker and make sure your shares are held in an account that doesn’t support lending.
The Bottom Line
Unfortunately, much of the declines we’re seeing in MannKind are caused by investor manipulation. The reality is that the company is a great investment with an incredible product. Sure, sales may be taking a bit longer than anyone would like to see, but all in all, Afrezza will sell in the long run. Not to mention, the company is doing everything they can to make this happen now. Insurance coverage is picking up and advertising dollars are being spent. From here, I believe that it’s all up hill for Afrezza sales and should be fore MannKind’s stock as well. Now we just need to work on the short selling.
What Do You Think?
What are you expecting to see from MNKD and why? Let us know in the comments below!