MannKind Corporation (NASDAQ: MNKD) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has received a milestone payment, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The milestone payment;
- what we’re seeing from MNKD stock as a result; and
- what we’ll be watching for ahead.
MNKD Announces Milestone Payment
As mentioned above, MannKind is having a great start to the trading session in the pre-market hours this morning after announcing that it has received a milestone payment. The announcement came via press release early this morning.
In the release, the company said that it had achieved the first of several specified development milestones under an agreement. The milestons were reached under a collaboration and licensing agreement with United Therapeutics.
Under the terms of the agreement, MNKD and United are working on the development and commercialization of a dry powder formulation of treprostinil. The product candidate is known as Treprostinil Technosphere, or TreT.
Currently TreT is being evaluated in clinical trials for the treatment of pulmonary arterial hypertension. According to the release, the company has received a $12.5 million milestone payment related to the development of TreT.
Moving forward, the company is eligible to earn an additional $37.5 million in milestone payments upon the achievement of other defined development milestones. MNKD will also receive low double-digit royalties on net sales of TreT, should the treatment make it to market.
The company also announced that it has filed a new self registration statement on Form S-3 with the SEC. When effective, the registration will replace the existing shelf registration statement that expires on April 27, 2019.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of MannKind, the news proved to be incredibly positive.
After all, the new milestone payment drives millions in new funding through the door. Moreover, it shows that the company is one step closer to the potential commercialization of TreT, a product that could prove to be incredibly profitable.
Considering this, it’s not surprising to see that MannKind is making a run for the top in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:36), MNKD is trading at $2.10 per share after a gain of $0.13 per share or 6.60% thus far today.
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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 Afrezza sales as well as the development of TreT and the company’s continued work to expand the utilization of its proprietary technosphere technology. Nonetheless, we’ll keep an eye on the news and bring it to you as it breaks!
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