MannKind Corporation (MNKD) Stock: Is Something Big On The Horizons?


MannKind Corporation (NASDAQ: MNKD)

MannKind Corporation has been an incredibly interesting stock to watch as of late. Over the past year or so, there has been a heavy debate surrounding the stock, and for good reason. You see, the company created Afrezza, an insulin like no other. This one is inhaled rather than injected. However, sales didn’t quite go as well as expected. Nonetheless, the tides may change in a big way, and it may happen soon. Today, we’ll talk about why Afrezza didn’t sell, what’s changed since the turn of the new year, and what I’m expecting to see from MNKD moving forward.

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Why Afrezza Didn’t Sell Very Well

When it comes to MNKD, the conversation surrounding the stock is heavily focused on its flagship product, Afrezza. Unfortunately, sales of Afrezza just haven’t been what they should have been. There are a couple of reasons for this:

  • Sanofi – Shortly after receiving approval from the FDA, MannKind contracted the commercialization of Afrezza to a company known as Sanofi. Unfortunately, Sanofi didn’t do much to commercialize the treatment. You see, they had a competing treatment of their own, and properly commercializing Afrezza could lead to declines in sales of its own product. So, one of the biggest reasons that we haven’t seen sales is that advertising for the treatment simply hasn’t been there.
  • Pricing – In the beginning, pricing of Afrezza wasn’t in the hands of MNKD. Instead, Sanofi set an incredibly high price point. This created a new problem. You see, with such a high price point, it was considered to be a high-tier treatment. This means that most insurance companies would not cover the full cost of Afrezza. However, by bringing down the price point, insurers will likely be more apt to cover the full cost of the treatment.

What We’ve See From MNKD This Year

This year has been a crucially important year for MNKD thus far, and will likely continue along that road. You see, in January, it was announced that the commercialization agreement between MannKind and Sanofi would be coming to an end. This would put commercialization rights to the treatment back into the hands of MNKD.

This is a very important fact to consider. While MannKind doesn’t necessarily have the money it needs to properly commercialize Afrezza, the company now has the ability to reach out to new commercialization partners. This is something that the CEO of the company has stressed quite a bit, and something that I expect to happen moving forward. We have also heard quite a bit about real-time diabetes care centers. Essentially, MNKD has entered into an agreement that will promote Afrezza through real-time care centers. This promotion will cost MNKD absolutely nothing!

Finally, MannKind also announced that it had entered into a partnership with regard to Technosphere, the proprietary technology that made Afrezza possible. Essentially, the company is now working on creating several treatments, including pain management, gastrointestinal, and other treatments that will soon be able to be inhaled.

What I’m Expecting To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from MNKD. In the short run, uncertainty will likely lead to more volatility. However, in the long run, if the company plays its cards right, there is tremendous upside potential with regard to both Technosphere and Afrezza.

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What Do You Think?

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