MannKind Corporation (MNKD) Stock: Continues Running For The Top


MannKind Corporation (NASDAQ: MNKD) is having yet another incredible start to the trading session in today’s pre-market. The stock has been in the green for the past seven (7) trading sessions and continues to run for the top following news released last week that the FDA has approved a label change. Today, the stock continues to climb as investors take note, expecting stronger Afrezza sales as the result of the label change. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:09), MNKD is trading at $6.02 per share after a gain of $0.69 per share (12.95%) thus far today.

The Label Change

The catalyst for the gains that we’ve seen recently out of MannKind Corporation is the fact that the FDA approved label changes for the company’s flagship treatment known as Afrezza. The changes to the label were relatively simple, but they make a big difference when it comes to selling the product.

You see, Afrezza’s label now includes specific instructions, not only for physicians, but also for patients. It is believed by many investors that these instructions will help physicians, leading to more prescriptions being written. It is also believed that the changes to the label will give consumers the much needed instructions that will lead to a better user experience, ultimately leading to more refills of the drug. If you’d like more details on the specifics of the label change, click here.

MNKD Posts Record Afrezza Sales Prior To Label Change Announcement

As if the news surrounding the label change wasn’t strong enough to keep investors excited about the prospects surrounding the company, Afrezza sales are also climbing. In fact, yesterday, the company released its sales figures for the week ending on September 29th. These figures also close out sales for the third quarter.

In the release, MNKD announced that sales for the week were just over 440. That’s massive considering that it is a record sales week for the company’s sales force. And at nearly 4,900 sales during the quarter, MNKD also had a record quarter when it comes Afrezza sales.

These Numbers Could Grow Quickly

I’d like to remind all readers that the numbers above that were released surrounding sales in the week ending September 29th are figures that were seen before the FDA officially approved the label changes on Afrezza. Therefore, these sales figures were based on what MannKind Corporation has been doing all along to motivate their sales force and the prescribers they reach out to.

However, this number could become exponentially larger. At the end of the day, the label change is exciting because it offers physicians everything they need in order to make smart decisions for their patients and patients everything they need in order to use Afrezza properly. As a result, it wouldn’t be out of the question to expect sales figures to rise. So, with the next release of sales data, I’m expecting to see yet another record broken.

What’s Next For MNKD

With the label change in mind, doors are likely going to opening for MNKD. This is not only with regard to selling their product to physicians, but also with regard to potential partnerships. After all, there are some massive companies that play on the diabetes playing field. With the label change in mind, these companies could be shaking in their boots, considering that their competitor’s product – Afrezza – could take a larger chunk of the market share than originally expected. As a result, it wouldn’t be surprising to see companies reaching out to MannKind in an attempt to collaborate on the commercialization of the treatment.

Another interesting concept is the idea that MNKD may tackle the Chinese diabetes market, which is a massive one. After all, the Chinese market is the second largest in the world. While this was a tough market to tackle in the past, things may be changing in a big way. Yesterday, it was announced that China will start accepting data from clinical trials performed outside of the country. So, we will likely start seeing a flood of companies pushing for regulatory approval in China. MannKind hasn’t said anything about whether or not they will push for Afrezza approval in the country, but we’re already seeing chatter surrounding the concept on message boards around the web. At the end of the day, this could be an incredibly strong move for the company.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MNKD. In particular, we’re interested in following the sales after the announcement of the FDA-approved Afrezza label change. We’re also interested in following the story to see if a new partnership is amassed after this news and to see if MNKD does make a push to bring Afrezza to the diabetes population in China. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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