MannKind Corporation (NASDAQ: MNKD)
MannKind is an incredible company with an incredible product. Unfortunately however, the bears have had a stronghold on the stock for quite some time now, manipulating the stock into losses. However, that is changing, and it’s changing quickly as the bulls start to break free. Today, we’ll talk about the ammunition the bears had on the stock for the past several months, how that ammunition is running dry, and what we can expect to see from MNKD moving forward.
Why The Bears Were Able To Hold MNKD Down For So Long
As mentioned above, MannKind has an incredible product. That product is known as Afrezza; an inhaled insulin which just so happens to be the first of its kind. However, in the pre-launch phase, Afrezza has had a rough time; selling just over $3 million which is far below expectations. As a result, the bears took this information and pushed the stock down, not thinking about the fact that Afrezza is likely to explode in the long run or the fact that the technology that made it possible would be used in other indications.
Why The Bears Are Losing Their Grip
While the bears have maintained control of MNKD for quite some time, it seems as though they are losing their grip; and for good reason. First and foremost, MNKD recently reported earnings for the second quarter. Their report showed that they actually beat analyst expectations. However, the reason the bears are losing control of this stock goes far beyond that.
We heard recently that MannKind increased their production capabilities of Afrezza in a big way. As a matter of fact, they tripled their capability. However, it wasn’t until Monday that we heard why. While it was easy to speculate that Afrezza was nearing regulatory approval in Europe, it wasn’t until Monday that this was laid out in a clear and concise way. On the earnings call, we learned that approval for the inhaled insulin in Europe was all but complete; and should be coming soon.
There have also been big concerns regarding the management of MannKind; which in my opinion, these concerns are invalid. Nonetheless, the company recently appointed a new chief medical officer that’s no stranger to the industry. As a matter of fact, Dr. Urbanski has held influential positions in Pfizer, Mylan, and several other mainstream biotechnology companies and is likely to help MNKD make their way to the top.
What We Can Expect To See Moving Forward
Since Monday, MannKind has produced gains in the market every day; and that trend hasn’t stopped today. Personally, I don’t think it’s going to stop for quite some time. However, I do expect things to change. Unfortunately, the gains MNKD deserves have been weighed down by shorts manipulating the stock at the cost of real investors. Nonetheless, those causing the manipulation are slowly dying off; and MannKind is likely to see gains in both the short and long run.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!