MannKind Corporation (NASDAQ: MNKD)
Throughout the past few months, MannKind has had a relatively rough time in the market. Starting with a downgrade from Goldman Sachs, the company was the target for a slew of negative research reports. However, it seems as though the stock has finally caught a break. Since Friday, MannKind has been climbing. That is, until the slight drawback we’ve seen today. So below, we’ll talk about why MNKD is finally back on the uptrend, why today’s pull back is a great buying opportunity, and what we can expect to see from MNKD moving forward. So, let’s get right to it.
Why MannKind Stock Is Climbing Again
There were several investors that thought the time would never come; however, MannKind proved them wrong and is back on the uptrend. However, why is it that the stock’s climbing again? It all started with a survey at Jefferies. The survey asked more than 50 endocrinologists and physicians about Afrezza. The survey found that only a tenth of physicians had ever written an Afrezza prescription, but many of them planned to do so in the future. As a result, the analyst wrote the following in a research note…
“Only a tenth of doctors screened had written an Afrezza script, we see MNKD’s efforts to expand access to spirometers and begin advertising in 3Q as key catalysts for uptake. With advertising, we expect the eventual rate of non-prescribers will fall closer to 12%. The 2015-2017 Afrezza use numbers implied by our survey suggests penetration rates nearly four times higher than we had previously modeled, and a $37 PT.”
With positive news finally coming out about Afrezza, investors got excited; sending the stock into a growth frenzy.
Today’s Pull Back Is A Great Buying Opportunity
While MNKD has seen solid gains over the past few days, the stock seems to be taking a bit of a rest today as we start to see pull backs. However, in the past, we’ve seen this on tons of other stocks; and to me, it’s not concerning at all. As a matter of fact, we’re likely to see a bit of up and down movement for a short period between now and the next break of the resistance line. This is just standard market movement and no reason to be concerned. However, if you’re not yet a MNKD share holder, this may be a great opportunity to get in on the gains.
What We Can Expect To See Moving Forward
As I’ve mentioned in previous posts, I’m expecting to see great things from MNKD both in the short term and long term outlooks. In the short term, the upgrade from Jefferies and the fact that physicians are likely to start prescribing Afrezza more often is likely going to lead to gains. In the long run, we have to think about what Afrezza represents. With Afrezza, MNKD has found a way to deliver injection only medications through an inhaled powder. While there’s no doubt in my mind that Afrezza will be popular, I also like to consider the fact that MNKD is testing the technology to deliver other injection only medications. So in a sense, Afrezza is the sign of a revolutionary change in the delivery of medication. That, in my opinion, will have quite a bit of long-term value.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!