MannKind Corporation (MNKD) Back On A Bearish Path: What’s Next?

MannKind Corporation (NASDAQ: MNKD)

MannKind Corporation is having a tough time in the market today. It seems as though the bullish activity we saw toward the end of last week has come to an end, and the stock is changing directions yet again. However, I don’t think that there’s any reason to be worried about the declines. The reality is that there are plenty of reasons to look at this as a discount on the gains that are to come. Here’s why…

MannKind Is Currently Trading Very Close To Support

First and foremost, support is the point at which a stock hits the floor during declines and starts to climb back up. Currently (11:34), MNKD is trading at $3.80 per share after a loss today of 3.06%. However, the most recent support level for the stock is at $3.79 so I don’t see MNKD dropping too far below that without any major bad news causing the movement to happen. So, there’s simply not much downside potential here. However, there is tons of upside potential.

There Are Plenty Of Reasons To Be Bullish

  • Analyst Ratings – First and foremost, you should never make investment decisions based solely on analyst ratings, but they do give you a good idea of what to look for. With that said, most analysts have a hold rating or higher making MNKD average in the buy area according to NASDAQ. It seems that overall, analysts have a positive opinion on the stock so we’re moving in the right direction.
  • Afrezza Is Looking Up – If you follow MannKind, you’ve already heard about Afrezza. However, for those that don’t, Afrezza is an inhaled insulin that was developed by MannKind using their technosphere technology. The drug has gotten a bit of backlash from investors. Simply put, it’s not selling as many would have hoped. However, recently, we’ve received tons of good news about what we can expect to see from Afrezza moving forward. First and foremost, one of the major issues that was harming sales figures on the drug was the fact that insurers were not covering it. However, according to a recent Seeking Alpha post, that’s no longer much of a concern. As a matter of fact, MannKind’s Afrezza is broadly covered, grabbing the attention of about 80% of the top insurers in the United States. Also, MannKind recently announced that it has tripled production capacity with regard to Afrezza, and hinted at European approval during their earnings call. Regulatory approval in Europe or Asia would definitely be a great reason to increase production and cause investors to look at the stock in a new light.
  • Other Medications – Finally, while I do believe that Afrezza will become a profitable endeavor over time, I also believe that the buck won’t stop with Afrezza. As a matter of fact, MannKind plans on using its patented technosphere technology to develop other inhaled drugs which will likely prove to be profitable in the long run.

What Do You Think?

Are you bearish or bullish on MNKD? Why? Let us know in the comments below!

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