MannKind Corporation (NASDAQ: MNKD)
If you follow my writing here or elsewhere, you know that MannKind is one of my favorite stocks to watch – and for good reason!The company has created a product that has the ability to revolutionize the treatment of diabetes. Not to mention, technosphere has the capability of doing the same for several other ailments. However, the stock has been tanking since early 2015. Nonetheless, I still have faith in MNKD. Today, we’ll talk about why MNKD has had such a rough time over the past year, changes that are likely to lead to bullish moves, and what we can expect to see from the stock moving forward. So, let’s get right to it…
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Why MannKind Has Had Such A Rough Time In The Market Over The Last Year
As mentioned above, since early 2015, MNKD has been tanking in the market, and I will admit, it’s for good reason. In late 2014, after Afrezza was approved, MannKind contracted the commercialization of the treatment to Sanofi SA (ADR) (NYSE: SNY). Unfortunately however, SNY has a competing product. As a result, it didn’t make sense for them to market Afrezza, and soon we realized that Sanofi was dragging its feet. As Afrezza continued to show lackluster sales, the value of MNKD started to decline. Soon, MNKD spiraled out of control, and declines continued. So, the bottom line is that MannKind has been declining as the result of poor Afrezza sales.
Why MNKD Is Likely To Climb Moving Forward
Based on the movement we’ve seen over the past year or so, it’s easy to think that MNKD is a horrible company. However, that’s not the case at all. In fact, in my opinion, MannKind is just as much of a victim of Sanofi as its shareholders. However, things are changing, and changing in a big way. In January, it was announced that MNKD and SNY were canceling the commercialization agreement that was signed in late 2014. This is opening the door in a big way for MNKD. Since the commercialization agreement was canceled, MNKD has announced many big changes that are likely to lead to big gains. Here’s what we’ve seen in the announcements:
- Specialized Diabetes Care Centers – One of my favorite announcements was made just a few days after Matthew J. Pfeffer took on the role as CEO at MannKind. The announcement was that MNKD has partnered with Specialized Diabetes Care Centers. This partnership requires MNKD to spend absolutely no money, however, it comes with big benefits. The care centers are centered around real-time diabetes care with Afrezza. As this gets rolling, we can expect to see strong prescription numbers from Afrezza.
- Technosphere Partnership – Technosphere is a big piece of MNKD. In fact, it’s the technology behind Afrezza. However, this technology can be used in several other ways. Recently, MNKD announced a licensing and development partnership under which technosphere will be used to develop treatments for a wide range of ailments.
- Further Partnerships – MannKind has announced that it is also working on finding other partners. It is looking into commercialization partners for Afrezza as well as other partnerships to further indications of technosphere.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see overwhelmingly positive news out of MNKD. The reality is that the best thing that could have happened to MannKind was the cancellation of the agreement between them and Sanofi. Now, MNKD is able to move forward with Afrezza in a positive way. This, in combination with technosphere, will likely send MNKD soaring in the long run.
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What Do You Think?
Where do you think MNKD is headed moving forward? Let us know your opinion in the comments below!
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