MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation has had an incredibly hard time in the market for some time now, and for good reason. Sales of Afrezza just weren’t where they should have been during the first launch. However, recently the company moved forward with the second launch of the treatment. Next month will likely reveal whether this launch is going to be a success or a failure as well as the overall strength and stability of MNKD as an investment. Today, we’ll talk about why…
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Why September Will Be A Huge Month (Good or Bad)
As mentioned above, the first launch of Afrezza didn’t bode well in the market. Of course, there were good reasons for this, one of the biggest being that Sanofi, the commercialization partner, was dragging its feet. However, another thing I mentioned above was that MannKind recently started moving forward with the second launch of Afrezza, one they have full control of.
Investors believed that the second launch was going to be incredible, and I was one that believed this too. In fact, while it’s been incredibly difficult, I’ve maintained a bullish opinion on the stock based on the incredible treatment that Afrezza is. Nonetheless, without sales, Afrezza is nothing more than a money drain.
With that said, we’ve all been looking for the second launch and waiting to see something amazing with regard to sales numbers at MNKD. Unfortunately, however, the company hasn’t produced. Take last week for example. While new prescription sales were up by 15%, retention is struggling with both refills and overall sales down in the week.
There have been several reports outlining the idea that MNKD will be changing things up in the month ahead, using data that it’s gotten from its sales efforts. As a result, investors seem to be waiting on pins and needles to see what happens. At the moment, I’m doing my best to maintain excitement, but it’s becoming more and more difficult.
Investors Continue To Abandon The Stock
While the belief among the bulls was that MannKind would have an incredible launch the second go around, that doesn’t seem to be happening. At least, it hasn’t happened thus far, a few months in. As a result, we’ve seen consistent declines in the value of the stock, as investors abandon their long positions. Currently (12:15), the stock is trading at $0.75 per share after a loss of $0.04 per share (4.88%) thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from MNKD. While I’ve done my best to maintain my bullish opinion, it’s becoming more and more difficult with each passing day. At this point, I’m expecting that the results of the month ahead will dictate price movements moving forward. If the changes at MNKD prove to drive sales and push Afrezza toward profits, there’s a good chance that we could still see a recovery. However, if September’s sales aren’t up to par, I believe that it will be a massive blow to investor sentiment. At the end of the day, MannKind needs to hit 25,000 monthly prescriptions for Afrezza to break even. Still with far less than 1,000 active prescriptions, the company has a long uphill battle ahead. However, if strong sales are seen in September, it could give investors the hope they need in order to stick it out through the hard time. If sales are a miss, I’m expecting a sell-off.
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What Do You Think?
Where do you think MNKD is headed moving forward? Join the discussion at TalkTRENDZ!
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