MannKind Corporation (NASDAQ: MNKD) is running up in the market again this morning as investor excitement continues to run high. So, what’s the deal? Why are investors so excited? Today, we’ll talk about:
- Why investors are so excited about MNKD stock;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why Investors Are So Excited About MNKD
MannKind’s claim to fame has largely been Afrezza, an inhalable form of insulin that is made possible through the company’s proprietary technosphere technology. However, after approval a while back, it became clear that taking the treatment to market was going to be a very expensive process. Ove the past couple of years, the company has spent massive amounts of money on commercialization and many have argued that insolvency would happen before profitability. Nonetheless, with news that broke just days ago, the insolvency issues are off of the table.
Recently, MNKD announced that it had entered into an agreement with United Therapeutics. As a result of the agreement, the company would receive a $45 million upfront payment and an additional $50 million in potential milestone payments surrounding development and commercialization as well as royalties on sales. In exchange, United will use the company’s proprietary technosphere technology to develop a dry-powder formulation of its drug, treprostnil.
This is overwhelmingly important news for MNKD and its investors. First and foremost, it gives the company valuable funding that will allow the company to market Afrezza and gives it a very long runway before insolvency becomes an issue. Perhaps more importantly however, the news acts as a bode of confidence in the technosphere technology. Think about it, if the dry-powder formulation of treprostnil works out well, other companies will likely be interested in creating dry powder formulations of their own drugs by licensing out the company’s technosphere technology. This could be the big open door that MNKD and its investors have been waiting for!
What We’re Seeing From The Stock
With such good news hitting the tape recently, investors are becoming more bullish on MannKind stock by the day. So, it’s no surprise to see that the stock 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 (11:22), MNKD is trading at $2.11 per share after a gain of $0.18 per share or 9.33% 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 the story surrounding Afrezza sales, the agreement with United and agreements that may be coming down the line in the future should all go well with United. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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