MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation has had a rough run in the market for some time now. However, it seems as though things are starting to head in the right direction, at least, somewhat in the right direction. Today, we’ll talk about the struggles the company has faced, the new news (that, for many, is old news… I’ll explain later), what we’re seeing from the stock today, and what we can expect to see from MNKD ahead.
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MNKD Hasn’t Had The Best Of Times Lately
As mentioned above, MannKind has been struggling in the market for more than a year now. The company created an insulin that can be inhaled. This feat of medical innovation was expected to be met with incredible sales numbers. However, that simply wasn’t the case.
Shortly after FDA approval, MNKD contracted the commercialization of the inhaled insulin (Afrezza) to Sanofi. However, Sanofi had a competing product. For the next year, investors watched and waited for positive commercialization news. Unfortunately, this news never came. Early this year, it was announced that the agreement between the two companies would come to an end, causing further declines in the stock.
However, recently, MNKD started the second commercialization effort of Afrezza. While sales are relatively slow at the moment, growth seems to be relatively promising. So, one of the reasons for the recent bullish activity on the stock has been these commercialization efforts.
The New News That’s Not Really So New
Throughout the declines, many bulls jumped over to the bear side. However, I stuck to my guns. There were two primary reasons that I did everything I could to maintain a positive opinion with regard to MannKind, even in the face of lack-luster sales. First and foremost, Afrezza is a dream product for many in the diabetic community. While the product didn’t fly off of the shelves as expected, it does represent a revolutionary change in how diabetes is treated, and, in time, I’m expecting sales to pick up.
However, Afrezza wasn’t the only reason that I maintained such a strong opinion of MNKD. In fact, one of the big reasons was Technosphere, which just so happens to be the center of the big news that’s causing movement at the moment. You see, Technosphere is the technology that allows insulin to be absorbed through the lungs when using the Afrezza insulin inhaler. For some time now, the company has said that they are working on further indications for this technology. For many of the bulls on the stock, this has been the driving force behind their decision to stick around.
Recently, MNKD let us in on one of the projects that they are working on. In light of the Mylan news surrounding the high price of the Epipen, MannKind said that it was working on a product that would allow for the delivery of the same active ingredient in a different way, likely through an inhaler. On top of that, the new inhaler will be provided at a fraction of the cost that consumers pay for Epi-pen. If the company can get a product like this approved, it could prove to be massive news!
What We’re Seeing From The Stock Today
While MNKD has had a rough time in the market as of late, we’re seeing strong movement from the stock today. Currently (12:10), the stock is trading at $0.74 per share after a gain of $0.03 per share (3.62%) thus far today.
What We Can Expect To See Moving Forward
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Moving forward, I maintain my bullish opinion on MNKD. While I will admit that there is still a long, uphill road ahead, the work the company has done and the accomplishments that they have achieved to date are absolutely amazing! Now, with news that the company is working on a product that will compete with the Epi-pen, there’s yet another reason to be excited about the future of this company. Nonetheless, it’s important to remember the risks. At the moment, MNKD is drowning in debt and is relying heavily on a successful second launch of Afrezza. Nonetheless, I believe that the company can make it over these hurdles and will likely thrive in the long run.
[Image Courtesy of Flickr]