MannKind Corporation (NASDAQ: MNKD)
MannKind stock has been back on the rise recently after the months of declines we saw following the unfounded Goldman Sachs downgrade. Earlier in the month, Jefferies publsihed the results of a survey that showed that physicians haven’t just heard about Afrezza, but they’re likely to start using it more in the future. Since this news came out, the stock climbed from under $3.70 per share to over $5 per share. Now the big question is…How long can this last. So, we’ll take a look at both the short term and long term outlooks of the stock and try to find out. Let’s get right to it.
Is MannKind Likely To Grow In The Short Term?
I think the answer is yes, but I also think that we’re not likely to see much more growth today. Yesterday, we saw a bullish flag that led to the breakout today; and today, we’re seeing the same thing. Looking at the chart to the left, you can see that the breakout happened earlier today and has reached a point of resistance very recently. From here, we’re likely to see relatively sideways movement for the rest of the day as the market takes a break from the growth. Nonetheless, after a day or so of flag action, we should see another breakout moving in the upward direction.
Where Is MNKD Headed In The Long Run
If you read my articles either here or elsewhere, you know that I am a MNKD bull. In my opinion, Afrezza is a great alternative to other insulin, but it represents so much more than that. Also, with recent changes to the board, the company has focused on solving it’s most challenging problem; management! Here’s how I see it…
- Afrezza – When it comes to Afrezza, I think that we can expect to see growth in the long run. As mentioned above, Jefferies recently released a research note with the results of a survey associated with MNKD and Afrezza. The survey found that 65% of responding physicians have not only heard about Afrezza, but plan on prescribing it more often moving forward. As a result, we can expect to see great growth in Afrezza sales moving forward.
- Management – Any time I have a conversation with a MNKD bear, they argue that they are not sure that the management is strong enough for this company to really thrive. While I disagree with this outlook, I do have to say that management at MNKD could use some work. Well, it seems as though the company realizes this. They just added James S. Shannon, MD to the board of directors; strengthening their management team.
- Beyond Afrezza – Beyond Afrezza, MannKind is working to use it’s technology to develop more and more product candidates. The fact that they have found a way to inhale injection only insulin says that this will most likely be the theme of the next product as well. As a matter of fact, MannKind has stated that they are working to develop new products with the use of it’s proprietary technology. That is the technology used in Afrezza to deliver insulin through an inhaled powder.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!