MannKind Corporation (MNKD) Stock: Setting Up For A Strong Year


MannKind Corporation (NASDAQ: MNKD)

MannKind is likely the most heavily debated stock in biotechnology today. In early 2015, the stock climbed in a big way as the result of a novel drug known as Afrezza. However, shortly thereafter, we started to see declines in the value of the stock as commercialization didn’t go quite as well as planned. Nonetheless, I’m still bullish on the stock. In fact, I believe that MNKD is going to end the year on an incredibly strong note. Today, we’ll talk about the issues that the company has had to deal with and why I believe that we’re going to start seeing gains on MNKD from here.

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MannKind Has Been Led Down A Rough Road

As mentioned above, MNKD has had a very rough time over the past year or so. It all started in late 2014 when Afrezza was approved by the FDA. Afrezza is an inhaled insulin that takes away the need for an injection in many situations. Considering the fact that about 10% of the population is afraid of needles combined with the fact that many people work in areas where they do not have access to public restrooms, Afrezza is a much needed product. However, where MNKD made its mistake was contracting commercialization to a company known as Sanofi.

Sanofi, has a competing product. As a result, if they were to properly commercialize MannKind’s Afrezza, they would possibly lose money as a result of declining sales on their primary product. So, it is the opinion of many that the Sanofi did what it could to drag out commercialization, leading to poor sales volume and ultimately declines on MNKD. Since then, MannKind has fallen to incredible lows.

Why I Believe MNKD Is Likely To Have A Great Year

Over the past year, MannKind has had a rough time. However, it’s my opinion that MNKD is going to soar over the next year! There’s a good reason for this; In fact, there are several good reasons for this! Here’s how I see it:

  • MannKind And Sanofi Are Parting Ways – In early 2016, it was announced that the commercialization contract between MannKind and Sanofi was coming to an end. In my opinion, this was very good news for MNKD. The commercialization agreement coming to an end gives MNKD the ability to seek better commercialization partners as well as make an effort to sell the product on their own.
  • Specialized Diabetes Care Centers – One of the biggest reasons that I’m bullish on MNKD at the moment stems from an announcement made just three days after Matthew Pfeffer took on the role as the CEO of the company. The company is working with Specialized Diabetes Care Centers (an independent body) in order to treat diabetes in real time with Afrezza. This is likely to increase Afrezza sales in a big way and send MNKD soaring!
  • Technosphere – While everyone seems to be focusing on Afrezza when talking about MNKD, Afrezza doesn’t make up the entire company. In fact, MannKind is made up of much more than Afrezza. One of the biggest pieces of their business is technosphere. Technosphere is the technology that allows for insulin to be inhaled, and will likely become the technology that leads to other inhaled medicines. In fact, MNKD has already contracted with another company for the development and commercialization of other treatments using technosphere. This will bring revenue in for the company as well.

The Bottom Line

The bottom line here is that MNKD has been dealt a relatively bad hand. However, that doesn’t mean that the company is down for the count. In fact, thanks to recent developments, it looks like MannKind will finally be able to generate profits. With that said, I’m expecting to see incredible gains in the value of the stock, leading to a strong end to this year.

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What Do You Think?

Where do you think MNKD is headed moving forward? Let us know your opinion in the comments below!

[Image Courtesy of Pixabay]


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