MannKind Corporation (MNKD) Stock: Starting The Week Off Strong


MannKind Corporation (NASDAQ: MNKD) has had an incredible time in the market over the past week, and the gains seem to be likely to continue in the week ahead. The reason for the gains is a relatively simple one. The company recently announced that the FDA has approved a label change for Afrezza, its flagship product. At the end of the day, this will open the door for the company to not only sales, but also potential partnerships that could lead to skyrocketing value. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:06), MNKD is trading at $5.56 per share after a gain of $0.28 per share (5.30%) thus far today.

MNKD Rockets On Recent Label Change Approval

As mentioned above, the big story surrounding MannKind Corporation as of late has been the label change with regard to Afrezza. You see, last week, it was announced that the United States Food and Drug Administration has approved a change to Afrezza labeling. Since MNKD received approval for Afrezza back in February of 2015, the company has struggled to generate sales of the drug. However, many, including myself, believe that the label change will give the company everything it needs in order to start ramping up sales and driving strong revenue from this potentially transformative treatment.

The change to the labeling was a relatively simple, yet important, one. You see, a big problem with Afrezza in the past was the fact that there was nothing else like it on the market. So, understanding the use of the treatment proved to be difficult for patients. However, the new Afrezza label offers detailed information with regard to how it should be used as well as how patients should feel when using it. The label also offers key information that will allow physicians to make more educated decisions when prescribing the treatment.

Considering the fact that the label change was geared to both physicians and patients, many believe that it will help with sales in two ways. First and foremost, the added details for physicians will help them to better prescribe the treatment, likely leading to a higher prescription volume. Also, with regard to patients, many believe that the detailed instructions will lead to a better user experience, likely leading to stronger refill sales for MNKD as well.

Doors May Open

At first glance, the label change is likely to help with sales of Afrezza. However, the potential surrounding this news goes much further than that. Sure, stronger sales volume is a great thing. However, it’s also possible that this label change will open doors to potential partnerships for MannKind that may have been closed in the past.

You see, the larger pharmaceutical companies with a key focus on diabetes may not have looked at Afrezza as an opportunity in the past, as the previous label created roadblocks that would hinder sales. However, with these roadblocks gone, generating sales is going to be an easier process. As a result, companies that may not have looked to partner with MNKD in the past may be viewing the concept as a much more appealing one today. At the end of the day, the label change could open the door to license agreements that would further amplify the potential surrounding Afrezza.

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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 Afrezza story and the sales that result following the label change. We’re also interested in seeing if the change leads to any interest from larger pharmaceutical companies that may not have been interested in a partnership in the past. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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