MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation has been an incredibly interesting stock to watch recently. After struggling a few months back thanks to a Goldman Sachs downgrade; a research note from Jefferies sent the stock back in bullish mode over the past couple of weeks. However, this week has been a bit of a different story. MNKD is falling, and falling hard. However, as with the last major decline in the stock I’m not concerned; instead I see a lower cost opportunity to get in on long term gains. Here’s why…
Why MNKD Is Likely To Grow
MannKind may look like a lump of coal to many right now; however, it’s important to point out that the stock is a diamond in the rough. The reality is that when it comes to MannKind, what we’re not seeing right now is the important part to focus on. With MannKind, their flagship product is Afrezza; and while Afrezza has been approved, and there has been a pre-launch, there simply hasn’t been advertising. However, when that advertising happens, I’m expecting to see big gains. Think of these two key points…
- Jefferies Survey Showed That Afrezza Will Likely Be A Hit – The recent climbs we’ve seen in the value of MannKind stock revolve around a survey from Jefferies. The survey was sent ot endocrinologists and other physicians; more than 50 of whom responded. In the survey, Jefferies asked respondents if they had heard of or plan to use Afrezza in the future. 65% responded stating that yes, they had heard of Afrezza and yes, they do plan on using it in the future. This shows that Afrezza is going over relatively well in the medical community; even in the pre-launch phase.
- Diabetics Are Likely To Choose Afrezza Over Other Insulin Options – I have several insulin dependent diabetics in my family; and considering what I talk about on my site, I figured it would be best to ask their opinions. The question I asked was this… “If there was a before meal insulin that could be inhaled rather than injected, would you ask your doctor for it?” The answer from everyone was “yes”! I also asked if they would be willing to spend more for an inhaled option. The answer again, was an overwhelming “yes” (12 out of 17 said they would). So, I’m confident that when MannKind markets Afrezza, the diabetic community will take to it relatively well.
MannKind Is More Than Afrezza
Another thing that we have to keep in mind when determining the likelihood of growth from MannKind stock is the fact that the company is far more than just a single product. While Afrezza is impressive, MannKind has other impressive treatments in the works. Most importantly, their technosphere technology that allows insulin to be inhaled rather than injected is currently being tested as a way to deliver other injection only medications. In my opinion, this can only lead to positive news in the long run.
What Do You Think
Where do you think MNKD is headed and why? Let us know in the comments below!