MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation has been a very interesting stock to watch for more than a year now. While I've maintained my bullish opinion, weak sales volume on Afrezza has made this difficult. Nonetheless, we're seeing some big changes to the commercialization strategy this month, and, according to the results from last week, those changes are working! Today, we'll talk about what the company has changed, what we saw from the company's sales last week, what we're seeing from the stock in the market, and what we can expect to see from MNKD moving forward. So, let's get right to it...
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MNKD Sees Strong Afrezza Sales
As mentioned above, MannKind had a strong week with regard to Afrezza sales last week. By the end of the week, new prescription growth grew massively. The figure was up from 116 to 156, showing 34% growth. While refills were on the decline, overall, the week proved to be great for prescriptions, which grew 12.5%, even after declining refills. All in all, Afrezza prescriptions grew from 263 to 296.
What Is The Company Doing Differently?
As mentioned above, MNKD has made several changes to their commercialization process. As seen in the prescription numbers above, the company is making the right moves. All in all, there are 5 changes that the company is making:
- In mid-late September, MNKD started the first consumer print ads. These ads are being featured in key journals with a target on a high-prescriber audience and key potential patient demographics.
- MannKind is also in the process of changing its consumer website to be more user friendly. So far, the changes seem to be positive. Taking a look at the site, you'll see that it's become more fun and, perhaps more importantly, more informational. All in all, they've done a great job with this so far.
- Another key part to this process is a digital campaign. MannKind said that once it is done updating the website, it will be kicking off a digital marketing campaign with new digital partners. While we don't know much about the campaign or the new partners, it will be interesting to watch as this unfolds.
- Next, the company announced that it plans on starting direct mailing initiatives. In these campaigns, the company will be targeting patients between 45 and 55 years of age who might not be as adept at social media as younger diabetics.
- Finally, MNKD said that it would be taking part in conferences in order to continue spreading the word whenever opportunities arrive.
What We're Seeing From The Stock
Following the strong results in prescription growth offered last week, we're seeing strong gains in the value of the stock this week. At the moment (12:05), the stock is trading at $0.62 per share after a gain of $0.05 per share (8.57%) thus far today.
What We Can Expect To See Moving Forward
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Moving forward, I have a relatively bullish opinion of what we can expect to see from MannKind. While the company has struggled in the past, it seems like they are making the right moves to really amp up sales growth. I'm also excited to see what comes of the company's plans to compete with the Epipen in the years ahead. However, it's also important to consider the risks. I will say that my optimism with regard to MNKD is met with caution. At the end of the day, we need to see quite a bit more sales growth before the company breaks even with Afrezza. There are questions with regard to the company's ability to do so. With the strong week last week, it looks like they are getting on track. Nonetheless, it is worth considering the risks if you're going to get involved here.
[Image Courtesy of Flickr]