Biotech

Biocept BIOC Stock News

Biocept, Inc. (NASDAQ: BIOC)

Biocept has had a very interesting time in the market recently. Although the company has released several points of data that show their advancements in the cancer diagnostics space, investors just didn’t seem interested as the stock fell. However, that seems to be changing. On Friday, the stock had a relatively strong day; followed by more breakout activity today. So today, we’ll take a look at what we’re seeing in the market, talk about why we’re seeing the activity, and discuss what we can expect to see moving forward. So, let’s get right to it.

BIOC Is Climbing

BIOC Stock ChartLooking at the chart to the left, a few things become clear. Firstly, Biocept has finally reached the floor with regard to the recent declines we’ve been seeing. That happened early Friday morning. However, since then, we’ve seen the bulls take hold of the stock, driving it further and further up. It’s also important to note that we’ve hit a pivotal point with regard to resistance. Following strong growth, we’ve seen a slight correction and it looks like a flag is likely to take shape in the chart. However, I strongly recommend watching that red line closely. Once this stock breaks through the $3.02 resistance line, it’s likely that we’ll see more, very strong growth.

Why Is Biocept Climbing In The First Place?

In my opinion, there are two ways this question can be answered…

  • From A Technical Standpoint – Looking at it from the technical side of the equation, it’s easy to say that after several days of slow and steady declines, the stock has reached support in the market. When this happened, BIOC started to bounce back, exciting investors and traders. As a result, the price of the stock was pushed further.
  • From A Fundamental Standpoint – From a fundamental standpoint, the climb also makes great sense. The reality is that in the past month, the company has proven to be able to detect a specific type of breast cancer using a blood sample biopsy. They’ve also added a new test to their portfolio that’s designed to pinpoint those who are likely to have lung cancer in the future. Again, these pieces of news both came out within the past month. The reality is that Biocept is a great company with great management, and a clear focus on the continuing improvement of the cancer diagnostics process…who wouldn’t invest?

Where Biocept Stock Is Likely To Move Next

I think we’re going to see great things in both the short-term and long-term outlooks of BIOC. The reality is that the company is incredibly strong fundamentally; and for the reasons mentioned above, I think we’re going to see great long term growth. As far as the short term goes, I don’t think we’ll see much downward movement. We’re likely to see a flag start to appear followed by more breakout movement in the upward direction as investors continue to get excited about this stock!

What Do You Think?

Where do you think BIOC is headed? Let us know in the comments below!

MannKind Stock News

MannKind Stock NewsMannKind Corporation (NASDAQ: MNKD)

Following the recent declines that we’ve seen from the stock, MannKind is having a great day in the market today. As with most MNKD price movement, today’s gains can be tied to Afrezza. Essentially, Physicians have provided feedback in a survey from Jefferies; and the feedback was overwhelmingly positive. Today, we’ll talk about what physicians are saying, how the market is reacting, and what we can expect to see from MNKD moving forward. So, let’s get right to it.

What Physicians Have To Say About MannKind’s Afrezza

Recently, Jefferies took a survey among several endocrinologists and physicians. As a matter of fact, the sample size of endocrinologists and physicians was over 50. In their responses, 65% of the physicians surveyed said that they not only knew about Afrezza, the type 1 diabetic inhaled insulin; and more importantly, they expect to use the drug more frequently moving forward. While many analysts have downgraded MannKind stock recently, the data from the survey has provided reason for Jefferies to maintain it’s “Buy” rating on MNKD with the current target price of $9 per share.

What We’re Seeing In The Market Today

MannKind is having a great day in the market today. Following the release of the survey data from Jefferies, the company’s stock quickly went into bullish action. Currently (10:57), MannKind is trading at $4.33 per share after a gain of 8.39% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see great things out of the MNKD stock; both in the short term and the long term perspective. Here’s how I see it going…

  • Short Term – In the short run, I’m expecting to see more growth from MannKind. While it’s important to remember that as a small-cap biotech stock, MannKind will most likely see quite a bit of price volatility, it’s also clear that investors are loving the news from Jefferies. As a result, we may see a dip from today’s highs; but that will most likely be followed by more gains!
  • Long Term – In the long run, my outlook for MNKD remains unchanged. I’ve talked about my long term outlook for the stock several times. Nonetheless, it’s a great outlook overall. First off, I’m incredibly impressed with what the company has been able to accomplish with Afrezza. There’s no doubt that sales are moving slowly, but there’s also no doubt in my mind that sales will pick up soon as the company starts the marketing plan. However, my outlook goes a bit further than Afrezza. The reality is that the inhaled insulin represents much more than a diabetes treatment, it represents the ability to deliver injection only medications through an inhaled powder. MannKind is already testing this ability with other medications, and is likely to show positivity in these tests. While most may be looking at MannKind as a company that’s changing diabetes treatments, I look at the company as one that’s innovating a new way to deliver medications in a less-invasive way. In the long run, I believe there’s quite a bit of value in that.

What Do You Think?

Where do you think MNKD is headed and why? Let us know in the comments below!

Biocept BIOC Stock News

Biocept BIOC Stock NewsBiocept, Inc. (NASDAQ: BIOC)

Looking over the past month, Biocept has had a pretty tough time in the market. After a steep climb on April 20th, the stock has fallen since; leading many investors to start asking the question, “When will BIOC bounce back?” Personally, as I’ve written throughout the week, I think the breakout is coming soon. Today, we’ll take a look at the stock’s chart and talk about when we’re likely to see a breakout; as well as talk about my long term expectations from biotech stock and whether or not it’s a good long term investment in my opinion.

From A Technical Standpoint: Looks Like A Breakout Is Coming Soon

BIOC Stock ChartLooking at the chart to the left, there are a few things that are clear. First off, there was a nice climb in the value of the stock on April 20th. Since then, we’ve seen steady downward movement when you set the volatility aside. Now, look at support and resistance. As you can see, resistance is falling. However, the support line is slowly rising. As a result, we’re seeing a smaller spread; so, at some point soon, BIOC has no choice but to break either support or resistance. Personally, I think it will breakout in the positive direction.

From A Fundamental Standpoint: Biocept Seems Like A Great Investment

When you look at the company from a fundamental standpoint, it’s hard to argue that BIOC has incredible potential for growth. First off, the management has proven their capability of getting things done. We’ve seen that with the two major announcements revolving around liquid biopsies that we’ve seen this month. Secondly, the product that BIOC offers is one that’s much needed in the medical field.

Biocept develops diagnostic blood testing technologies. Essentially, the company has found a way to detect cancer using a blood sample biopsy rather than a tissue sample. Most recently, Biocept announced the addition of a new test to it’s portfolio. The new test is designed to detect whether or not a patient is receptive to cancerous cells with a specific focus on lung cancer. So, essentially, Biocept has found a way to detect whether or not lung cancer is likely in a patient before it even happens. Considering that the amount of time diagnosis takes could mean the difference between life and death for lung cancer patients, this is a huge breakthrough in the industry of cancer treatments!

Another recent announcement the company made revolved around the result of it’s liquid biopsy for breast cancer. In the study, Biocept performed biopsies on several blood samples taken from women with a specific type of blood cancer. When comparing the results of the liquid biopsies to the results of traditional tissue biopsies, the results were identical; ultimately proving that BIOC had successfully found a way to detect breast cancer without the need for an invasive tissue biopsy.

The bottom line is that Biocept is a great company with a product that’s not only wanted, it’s needed. As a result of the advancements the company has made in the medical field, I have a feeling that early detection of cancer will be made possible for many patients; ultimately increasing the survival rate we see from the ailment. In my opinion, that’s incredibly valuable and BIOC stock will show just how valuable it is in the long run.

What Do You Think?

Where do you think BIOC is headed and why? Let us know in the comments below!

Oncothyreon ONTY Stock News

Oncothyreon ONTY Stock NewsOncothyreon Inc (USA) (NASDAQ: ONTY)

Oncothyreon stock has had an incredible day in the market today. After a slight climb that brought the stock to a closing price of $2.02 yesterday, the stock is up more than 30% today. So, What’s the reason for the climb, and what can we expect to see in the short term and in the long term from ONTY? Here’s my take on it.

Zacks Upgrade Makes ONTY Appealing

I’ve looked at several different sources and tried to find multiple reasons for the climb. However, the only positive news I was able to dig up from the company has been earnings and analysts. Recently, several analysts have weighed in with their opinions on ONTY. However, most recently has been Zacks; and it seems as though their upgraded opinion is the reason for the climb. Yesterday, Zacks announced that they’ve upgraded the stock from a “Hold” rating to a “Buy” rating; giving it a target price of $2.25. While the stock has grown much further past $2.25 per share at this point, this seems to be the cause of the growth.

What We Can Expect To See From Oncothyreon In The Short Term

To be honest, I find this breakout to be incredibly interesting. The reality is that the momentum was started by an upgrade targeting the value of the stock to be $2.25 per share. However, we saw this thing as high as $2.84 at the peak of the trend a little more than an hour ago. With that said, the slight push of momentum was enough to get this trend really rolling and investor excitement has taken hold. Given the fact that price movements in the market are a series of overreactions; I’d imagine that a decent correction is coming soon. Nonetheless, I don’t see the price falling to $2.25 or anywhere near that any time soon. What I think we’ll most likely see is a slight decline as investors get concerned about resistance. From there, we should see another bounce; giving day traders the perfect opportunity to buy on the pull back.

What We Can Expect To See From ONTY In The Long Run

In the long run, I’m also expecting to see great things. Looking past the analyst upgrades we’ve seen recently, the company seems to be very strong fundamentally. This clinically stage biopharmaceuticals company focuses on the development and commercialization of therapeutic products for the treatment of cancer. When you look at their current pipeline, the company has several candidates designed to target cancer in incredibly effective ways. Oncothyreon’s primary goal is to develop and commercialize novel synthetic vaccines and target small molecules that have the potential to improve the lives and outcomes of cancer patients. Among the candidates in it’s pipeline is, and the leader of the charge is Stimuvax. This flagship candidate is a cancer vaccine in Phase III development for non-small cell lung cancer. With their incredible pipeline, management that has proven to take charge, and an exclusive, worldwide collaboration agreement with Merck for the development and commercialization of Stimuvax, I think we’re going to see great things to come from Oncothyreon and it’s stock in the long run.

What Do You Think?

Where do you think ONTY is headed and why? Let us know in the comments below!

Clovis Oncology CLVS Stock News

Clovis Oncology CLVS Stock NewsClovis Oncology Inc (NASDAQ: CLVS)

Clovis Oncology is trading relatively low today after climbing yesterday. However, I’m not too concerned about the declines. As a matter of fact, I think what we’re seeing is very natural and will lead to more upward movement. Today, we’ll discuss the news that caused the company’s stock to climb yesterday, what we’re seeing in the market today and why I’m not concerned about the decline, and what we can expect to see moving forward.

The News That Caused Clovis Oncology To Climb Yesterday

Yesterday, Clovis Oncology climbed following an after hours announcement on Wednesday that it will give two oral presentations at the upcoming 2015 ASCO annual meeting. The presentations that will be given will focus on Rociletinib and Rucaparib. As a result of the announcement, the stock climbed; gaining 16.7% in the trading session.

What We’re Seeing From CLVS Today

Unfortunately CLVS isn’t having a great day in the market; and the declines are proving to be concerning for some investors. Nonetheless, I’m not concerned at all. Currently (11:35), the stock is trading at $94.17 per share after a loss of 6.21% so far today.

Why I’m not concerned about today’s declines…

While today’s declines may be concerning to some investors, I’ve got to admit, I’m not concerned at all. As a matter of fact, I see this decline as natural market movement. I’ve mentioned this several times in the past. Price movements in the market happen through a series of overreactions. While there was good reason for yesterday’s climb, there wasn’t good reason for the stock to climb by nearly 17% in a single day…much of that was investor excitement. So, as we generally see in these cases, the stock has started a correction today. However, I don’t think it’s going down much further. As a matter of fact, I’d be pretty surprised to see losses fall to 7% or greater today.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see great things from CLVS in both the short term and long term outlooks. Here’s how I see it…

  • Short Term – In the short term, I’m expecting to see a bit of a recovery from today’s correction. As we tend to see in these situations, there’s a large climb, followed by a correction, followed by either another breakout like climb or sustainable growth. No matter which it is, we’re likely to see more upward movement in the short run for this one.
  • Long Term – In the long run, I’m also expecting to see great things. The reality is that Clovis Oncology is a great company with an incredible pipeline, and management that’s likely to follow through. All in all, it seems as though the stars are aligning just right for this stock; making today’s declines a great buying opportunity for future gains!

What Do You Think?

Where do you think CLVS is headed and why? Let us know in the comments below!

Gilead Sciences Stock News

Gilead Sciences Stock NewsGilead Sciences, Inc. (NASDAQ: GILD)

If you follow my work, you know that I’m a big follower of Gilead Sciences. If you’re into biotech stocks, I’m not sure how you couldn’t follow them. The company is the world’s leader in HCV and HIV treatments; making them one of the strongest stock picks in the industry; and they’ve gotten even stronger. On Wednesday, the company received approval for premium pricing of Sovaldi in Japan. Today, we’ll talk about the approval and what it means, how investors reacted in the market, and what we can expect to see from GILD moving forward.

Drug Pricing Authority of Japan Allows Premium Pricing Of GILD Sovaldi!

The news came in yesterday that Gilead’s key hepatitis C drug, Sovaldi, has been approved for premium pricing in Japan. On Wednesday, the pricing for Sovaldi in Japan was announced; and proved to be about $15,000 higher than Citigroup expected it to be. Here’s what the pricing will look at…

  • Daily – $514
  • Total Treatment Cost – $43,000 for the entire 12 week treatment

As you can see from the information above, the pricing in Japan is far less than the $84,000 pricing we’re seeing in the United States. Nonetheless, the drug was approved for a much higher price in Japan than anyone seemed to have expected.

How GILD Reacted In The Market

As we have come to expect most of the time good news comes out about a particular asset, Gilead Sciences stock was up. As a matter of fact, it’s been up more than 2% Wednesday and Thursday, and it seems like we may be seeing the beginning of a breakout today. Currently (11:08), GILD is trading at $110.02 per share after a gain of 1.18% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see gains out of GILD in both the short term and long term outlooks. Here’s how I see it…

  • Short Term – In the short term, we’ll most likely see gains as a result of investor excitement over pricing in Japan as well as reminders of great earnings and industry leadership. While we’re likely to see dips in the value of the stock here and there, for the most part, we should see pretty solid upward movement from GILD.
  • Long Term – In my humble opinion, Gilead Sciences is a great stock for the long run, even if it’s bought at current pricing. The bottom line is that even with competitors like AbbVie Inc (NYSE: ABBV), Gilead Sciences still maintains control over the HCV market; and that’s not likely to change any time soon. Now, Japan has approved higher than expected pricing. So, we can expect to see more revenue from the region than we once expected. The bottom line is that GILD is fundamentally sound and should see pretty incredible growth in the long run.

What Do You Think?

Where do you think GILD is headed and why? Let us know in the comments below!

Discovery Laboratories DSCO Stock News

Discovery Laboratories DSCO Stock NewsDiscovery Laboratories, Inc (NASDAQ: DSCO)

Discovery Laboratories stock is having a rough time in the market today. After releasing data from the AEROSURF clinical program and announcing the advancement of the program, the company’s stock took a nosedive. So today, we’ll dig into the data, talk about the advancement of the program, and discuss whether or not we can expect DSCO to climb any time soon. So, let’s get right to it.

Data From & Advancement Of The AEROSURF Phase 2 Clinical Program

Discovery labs is a specialty biotechnology company that’s focused on the development of KL4 srfactant therapies for respiratory diseases; and today, they made a big announcement. Phase 2a clinical trials in premature infants with respiratory distress syndrome (RDS) achieved both of its key objectives…

  1. Primary Objective – The primary objective of the study was to demonstrate safety and tolerabillity of a single exposure of aerosolized KL4 surfactant administered in three escalating inhaled doses to premature infants who were receiving positive airway pressure for RDS. When compared to data from infants receiving positive airway pressure alone, safety was clearly demonstrated.
  2. Proof of Conept – DSCO also planned to establish proof of concept for the Company’s proprietary technology platform based on physiological data suggesting that aerosolized KL4 surfactant is being delivered into the lung of premature infants, and acceptable performance of the novel capillary aerosol generator; and the study has done just that.


As a result of the positive data, DSCO has made the decision to advance clinical trials to phase 2b. This phase, expected to start in the fourth quarter of 2015, is aimed at determining the optimal dose and defining the expected efficacy margin of the AEROSURF treatment.

How The Market Reacted

To me, the market reaction to the Discovery Laboratories news is pretty shocking. After the break of the news, the stock essentially took a nosedive; losing nearly 14% by 10:00. Since then, it’s traded relatively flat. Currently (1:26), DSCO is trading at $0.99 per share after a loss of 13.85% so far today.

What To Expect Moving Forward

Moving forward, I’m expecting to see great things out of Disco Laboratories in both the short term and long term. The reality is that the data released is a big win in my opinion. Both key objectives were met and we’re moving to phase two. So, I’m not quite sure why the stock is falling today; it just doesn’t make sense. So, I’m expecting to see a short term recovery; leading to long term gains. Now, keep in mind that DSCO is a small in the world of biotech stocks; so, we’re likely to see a bit of volatility on the way to the top.

What Do You Think?

Where do you think DSCO is headed and why? Let us know in the comments below.

Orexigen Stock News

Orexigen Stock NewsOrexigen Therapeutics, Inc. (NASDAQ: OREX)

Orexigen took a major hit in the market earlier this week. Unfortunately, the company announced that it will be stopping testing on the cardiovascular candidate known as Contrave. As a result, the stock dived. However, today we’re starting to see gains for the first time since the bad news; leading investors to ask, “Is OREX going to bounce back?” Personally, I don’t think we’re going to see any massive growth any time soon. So below, we’ll talk about why the Contrave studies were stopped, how it affected OREX stock, and what we can expect to see in the future. So, let’s get right to it.

Why The Contrave Studies Were Stopped

The bottom line is that after a several studies, Contrave proved to be ineffective. In preliminary studies, Contrave seemed like it may be effective, and OREX released those results. However, this is a classic case that proves that no moves should be making on a pre-judgement basis. Here’s what Steve Nissen, the lead researcher for for the Cleveland Clinic Cardiovascular unit had to say about the results…

These results show neither benefit nor harm for patients taking the drug, but are consistent with the requirement by the FDA that the Light Trial demonstrates an absence of a doubling of cardiovascular risk for patients taking the drug. The inconsistency of effects on cardiovascular outcomes between the first 25 percent and the second 25 percent of the Light Study clearly illustrates the risks inherent in pre-judgement of clinical trial results based upon an interim analysis and demonstrate why interim results should remain confidential during any ongoing trial.”

How The Market Reacted To The News

As I’m sure you could imagine, Orexigen investors weren’t happy with the fact that Contrave studies are going to stop. The reality is, the company has spent an amazing amount of money on the discovery and development of this drug; and that money is now going down the drain. As a result, OREX stock fell hard; losing nearly 30% since the break of the news.

What We’re Seeing In The Market Today

Today, the story seems to be a bit different. Investors are starting to pump the value of OREX back up in the market. Currently (12:44), OREX is trading at $5.11 per share after a gain of 1.79% so far today.

Can Orexigen Recover?

Now the big question is “Can OREX bounce back in the market?” In my opinion, the answer is yes, but it’s going to take several years. Orexigen is of course going to look for new candidates. However, those candidates aren’t likely to hit the market for at least 7 years. So, in the short term, I’m not expecting to see anything too positive out of the stock. However, in the long term, things may be different. Nonetheless, I don’t see any reason to start pumping investment dollars into the company at the moment.

What Do You Think?

Will OREX recover? Why or why not? Let us know in the comments below!

Gilead Sciences Stock News

Gilead Sciences, Inc. (NASDAQ: GILD)

AbbVie Inc (NYSE: ABBV)

Before I get into the details, this article was written as a request from Ward Agular Financial Inc. If you haven’t checked out their website, it’s well worth doing. Click here to check them out!

I’ve been following Gilead Sciences for quite some time now; and I have to say, the company is incredibly impressive. Currently, they have a stronghold on both the HIV and HCV markets. However AbbVie has made their entrance in the HCV market; leading to a ruthless price war. So far, GILD has been able to maintain its stronghold over the market, but ABBV is proving to be an incredibly worthy contender. Fortunately, I’ve recently had the opportunity to have conversations with patients using treatments from both companies, and I’ll share details of those conversations below. Also, we’ll talk about pricing, availability, and which of the two companies is more likely to win the battle for HCV popularity.

What I’ve Learned From Patients I’ve Had The Opportunity To Speak With

In an interest of privacy, I’ll keep the patients’ names out of the conversation today. Instead, we’ll give them the names GILD patient and ABBV patient. Here’s what I learned from conversations with them…

ABBV Patient – The first patient I spoke with is currently using the treatment provided by ABBV. After having HCV for an undetermined period of time (likely around 30 years) he started to feel symptoms and went to get a check up. Sure enough, he was one of the baby boomers that have contracted the hepatitis C virus. Because of the insurance company he uses, Blue Cross Blue Shield, he was prescribed the ABBV treatment rather than the GILD treatment. The determining factor in medication choice here was price. The reality is that ABBV is far less expensive than GILD; and since Blue Cross Blue Shield works closely with Express Scripts (a company that has a deal with ABBV), ABBV patient really had no option. Essentially, for his insurance to cover the more expensive, yet highly effective GILD treatment, he would have to be much more sick than he currently is. So, essentially he is not yet sick enough for top notch treatment in his insurer’s eyes.

As you can imagine, when I spoke with him about this, he was obviously upset. He explained that the treatment from ABBV uses Ribavirin; which unfortunately has horrible side effects. He also explained that the amount of medications he has to take with the current treatment is far more than he would like; and that he finds the GILD 1 pill a day treatment to be very intriguing. Nonetheless, the fact that he is “not sick enough” to receive GILD keeps him from trying the option.

GILD Patient – After speaking with ABBV patient, I remembered that one of my friends was another member of the baby boomer population that was currently undergoing treatment for HCV. So, I decided to give him a call and see what medication it was that he was taking. Fortunately, he was prescribed the GILD treatment. In his particular situation, he wouldn’t be sick enough to receive the GILD treatment under Blue Cross Blue Shield. However, his current carrier ETNA, doesn’t stop him from choosing the higher end treatment.

When speaking with him, he honestly seemed happy. He explained that any medication will have side effects and that he understands he’s “eating poison”, but all in all, the only side effect he experiences is lethargy from time to time. All in all, he had no gripes with the medication and even explained how happy he was that he was able to use GILD rather than ABBV. He also brought up an interesting fact that I hadn’t thought about before. He explained that his friend who used ABBV had the HCV come back after he was fully treated. At that point, the friend was prescribed GILD treatments and has been doing incredibly well since. Which led me to ask a new question…

How Much Money Can Insurance Companies Lose By Deciding Not To Pay More

It’s clear that GILD provides the better treatment. There’s only 1 pill per day, side effects are minimal, and success rates are incredibly high. If given any other option, why would anyone take it? The answer is price. On average the full treatment provided by GILD has a price tag of $94,500. However, ABBV’s treatment only has a price tag of $83,319. So, an insurance company saves an average of about $10,000 for every patient that is treated with ABBV over GILD.

The big question now is, are they really saving. In reality, ABBV’s success rate is around 90%. So, lets say that 1 in 10 patients end up with recurring issues and are placed on GILD. This completely eats away the roughly $10,000 per patient difference! Not to mention, the cost of transplants for those who ABBV fails. The reality is that HCV causes kidney failure, and in many with recurring HCV, this becomes a reality; which requires a transplant. In the US, the average cost of a kidney transplant is $292,900. If this were to happen with only 1 in 30 patients, this would also counteract any savings from placing patients on ABBV’s treatment rather than the treatment provided by GILD.

Final Conclusion

In the long run, I think that Gilead Sciences will maintain it’s dominant position in the HCV market. The reality is that while ABBV is a worthy contender, they’re not quite ready for the big league if their competition is GILD. As a matter of fact, after breaking down the numbers, I’m incredibly surprised that any insurance company would be willing to cover ABBV over GILD. In the long run, this could be a risky move that proves to be more expensive for Blue Cross Blue Shield and like minded insurance companies. Maybe that’s why ETNA is so willing to pay the higher price tag (food for thought). Nonetheless, the battle continues and only time will tell who wins.

Sanofi MannKind Afrezza Partnership

Sanofi MannKind Afrezza PartnershipMannKind Corporation (NASDAQ: MNKD)

MannKind has a compelling story at the very least. Here we have a company that’s made amazing medical advancements in the field of diabetes and medicine in all (we’ll get to that lately); however, the company’s stock has been on a steady decline for more than 3 months now; currently in the red when looking at the past year. However, this is a hotly debated topic. Even though the stock is sliding, there are several investors that are still convinced that we’re going to see growth out of this one; and I have to admit, I’m one of them! So today, I’ll explain the argument from both sides below.

Those Who Don’t Like MNKD Point To Afrezza As A Reason

For those who are bearish on MannKind, Afrezza tells the whole story. The bears are looking at Afrezza sales and saying…something isn’t right here. The reality is that in the first quarter, analysts expected Afrezza sales to be between $3 and $4 million. However, the company was only able to generate little more than $1 million in sales. So, essentially, the bears don’t have faith in the fact that MNKD can pick Afrezza sales up. We’ve actually seen this argument pretty commonly since Goldman Sachs downgraded MNKD months ago.

Those Who Like MNKD Point To Afrezza As Well

Bad news isn’t the only news you’re going to find about Afrezza. As a matter of fact, those that are bullish on the stock point to Afrezza as a reason to run with the bulls. The reality is that Afrezza is a great advancement in the world of medication. Before Afrezza, those who needed insulin needed to take it through an injection. However, now that Afrezza is available, patients don’t have to deal with painful shots.

Now, I can understand the reason for the bearish arguments around Afrezza. The reality is that no matter how bulls sugar coat it, sales for the insulin are absolutely horrible. That can be scary to investors. However, it’s important to keep in mind the reason for the low sales. At the moment, MannKind isn’t even marketing Afrezza. There’s no commercials or print ads, it’s all word of mouth. While that won’t always hinder sales, it will play a major role. Another factor that’s playing a major role in the slow growth is the legal hoops patients have to jump through in order to get their hands on an Afrezza prescription. So, while Afrezza is on the market, it can’t be sold like other insulin and the sales shouldn’t be compared. However, MNKD should start marketing soon; and the FDA hoops won’t last forever. So, Afrezza is bound to do well in sales later on.

Another thing to keep in mind is the fact that Afrezza doesn’t simply represent insulin. It represents the ability to deliver medication that was once injection only to the human body through an inhaled powder. MannKind and its investors expect the same technology that delivers insulin in Afrezza to have the ability to deliver a wide range of other medications that are currently injection only medications. In the long run; you have to admit that this technology has value.

So, Can MNKD Recover?

I think it will. However, I also think that it may take some time before it happens. Nonetheless, I have faith in the company’s ability to innovate and I’m sure sales will come down the road.

What Do You Think?

Where do you think Afrezza is headed and why? Let us know in the comments below!

Thought Leader Discussions

Gevo, Inc. GEVO Stock News

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Gevo, Inc. (NASDAQ: GEVO) Before we get into this interview, I'd like to extend a special thanks to my friend Joey who both set up the...