MannKind (MNKD) Provided Great News Last Week: What To Expect

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MannKind Corporation (NASDAQ: MNKD)

Last week was a big week for MNKD. On Wednesday, MannKind gave a presentation at the Aegis Capital Corp. 2015 Growth Conference. Leading up to the conference, the topic of discussion was relatively silent, but it wasn’t hard to predict what was coming. All in all, the presentation was filled with great news for investors. Today, we’ll talk about what we learned from the presentation, how the market reacted to the news, and what we can expect to see from MNKD moving forward.

What We Learned From The MNKD Presentation

There were several things that investors learned from the MNKD presentation…

  • Afrezza Advertising – First and foremost, MannKind stated the obvious by saying that Afrezza was off to a relatively rough start. However, they still believe that the inhaled insulin is going to be a blockbuster as consumer awareness improves. Sanofi is in charge of commercialization and MannKind is expecting to see more relatively soon. They explained that the direct to consumer campaign is under way and we will soon see a big push in online and magazine advertising for Afrezza.
  • Afrezza Regulation – Afrezza has only been approved in the United States. However, MNKD is working with regulatory agencies in Asia and Europe to get the inhaled insulin approved in these regions as well. The company is expecting to release more updates with regard to regulatory approval abroad next year.
  • Technosphere – If you’ve read any of my past MNKD articles, you know that I look at MannKind as a company far beyond Afrezza. Sure, Afrezza is the only approved treatment MNKD has on the market, but it’s not going to be the last. During the presentation MannKind announced that they are working on other indications for technosphere. They believe that this technology has fundamental advantages in the medical space. More specifically, the company is working on a treatment for pulmonary hypertension indications. While there was a mention of other indications, the presentation wasn’t clear as to what the other indications might be.
  • Financial – In the presentation MNKD also touched on their finances, an area that proved to be a major area of question for investors. However, in the presentation, we learned that MannKind is working to eliminate unnecessary functions and is now burning cash at a slower rate. They also explained that milestones are coming. While the presenter wasn’t at liberty to disclose much information with regard to these milestones, it was announced that a $50 million milestone has been met and that a $25 million milestone is likely soon to come.

How The Market Reacted To The News

While the news from the presentation was overwhelmingly positive, the shorts on MNKD are still holding the stock at low levels. As a result, we’ve seen relatively flat movement since the presentation.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see more positive news. However, investors are going to need to be patient. In the short term, we are likely to see more flat movement as shorts continue to put resistance on the stock. However, that’s not likely to last forever. The reality is that sales are starting to improve, and as consumer awareness improves, sales will only get better. Also, I’m expecting that Afrezza will be approved in Europe and Asia. When this information comes out next year we can expect to see relatively large gains. Finally, with new indications coming for technosphere, the sky is the limit for MNKD.

What Do You Think?

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

[Image Courtesy of Connecticut House Democrats]

7 COMMENTS

  1. Perhaps the biggest news was mention of resolution of the $100M debt. While details were few, and details ‘promised’ by EOD (never happened) the debt was paid in cash and stocks – how/who/much a mystery. This and BoA supposedly returning 9M ‘borrowed’ (short) share are suppose to be returned this week.

    We’ll see – with 1 of 4 MNKD shares traded ‘naked’ it’s hard to see any upside until either bankruptcy (hope not) of one of the many pending catalysts shakes them out in one-helluva squeeze. https://goo.gl/EOXtvj

  2. Well you should mention how far away we are from seeing the technosphere technology adopted. 3-5 years. Pretty long time with an unsustainable product. Hopefully afrezza comes around

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