MannKind Corporation (NASDAQ: MNKD)
I’ve been following MannKind for quite some time now. After all, I find the fact that the company has created an insulin that can be inhaled to be incredibly interesting. However, there has been an overall bearish sentiment on the stock recently. Nonetheless, MNKD will report earnings before the bell on Monday; at which point, I’m expecting that we’ll start seeing a reversal in the sentiment surrounding the stock. Today, we’ll talk about what to watch for in the earnings report, what we can expect to happen after the release of the report, and why investors may want to consider getting in on the stock before the report is released. So, let’s get right to it…
Earnings Will Be The Last Thing To Be Concerned About
This will be a very interesting earnings report in the sense that the last thing investors will be concerned about is earnings. The reality is that we already know that revenue is going to be poor and earnings are going to be poor. After all, MannKind’s Afrezza has only brought in just over $3 million in its pre-launch. Therefore, we know what to expect with regard to numbers. However, poor revenue and earnings doesn’t necessarily mean that MNKD is going to fall Monday after earnings. That’s because investors are really looking for information associated with Afrezza; the world’s first and only inhaled insulin.
Despite the poor sales volume of Afrezza in the pre-launch phase, MannKind has tripled production capacity in their facility for the drug. While they announced that production capacity has tripled, they haven’t announced why they made the change; which is what investors will be eager to find out. After speaking with several investors, I’ve found that most believe that the extended capacity of Afrezza production has to do with approval for the inhaled insulin from the European Medicines Agency; which could result in sales increases of the drug. After all, there are currently more than 60 million diabetics in Europe; many of which would likely be interested in Afrezza. Nonetheless, regardless of why the change was made, investors will be looking for answers among the release of earnings.
What We Can Expect After The Release Of The Report
I’m expecting to see growth. The reality is that it’s not likely that MNKD can disappoint with regard to earnings. After all, investors are already preparing for the worst. However, no one quite knows what to expect when it comes to announcements about Afrezza; everything we’ve heard there is nothing more than speculation. Therefore, if MNKD does indeed release positive information with regard to why they expanded production capacity of Afrezza, we can expect to see investor excitement that drives the stock in the upward direction.
What Do You Think?
What are you expecting to see from MNKD on Monday? Let us know in the comments below!