MannKind (MNKD) Stock Down On Sanofi (SNY) Earnings

Sanofi MannKind Afrezza PartnershipMannKind Corporation (NASDAQ: MNKD)

Sanofi SA (ADR) (NYSE: SNY)

If you follow my writing here, you know that one of my favorite stocks in biotech is MannKind. Unfortunately however, MNKD is falling in the market today due to the negative report we saw from Sanofi. Nonetheless, I think that the report could turn out to be positive for MannKind; and even if that wasn’t the case, I still think MNKD is a great investment. Today, we’ll talk about the SNY report, why MNKD is falling because of it, and what we can expect to see in the future. So, let’s get right to it…

SNY Q1 Misses Expectations

In the first quarter, Sanofi really struggled with sales of their diabetes drugs. However, due to the current weak state of the Euro, the company’s profits actually grew. Nonetheless, they struggled with Lantus sales.

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Why MNKD Investors Care About SNY Earnings

Why Sanofi didn’t go into detail about Afrezza, it’s important to note that Sanofi plays a major role in Afrezza. So, if sales of the company’s other diabetes drug, Lantus, were down, investors think they’ll see the same thing from Afrezza. Personally, I beg to differ.

How MannKind Stock Reacted To The News

Unfortunately, MannKind stock is down in a big way today; thanks to the poor Lantus sales reported by SNY. As a result, the MNKD is currently (11:19) trading at $4.47 per share after a loss of 2.35% so far today.

Why I Don’t Think We’re Seeing The Full Story

Sanofi had the opportunity to report how Afrezza was doing today, but chose not to do so. In my opinion, that can mean one of three things…

  1. Afrezza Did Bad – If sales of Afrezza weren’t good, I could imagine SNY waited for the MNKD report to lighten the blow from their own earnings report.
  2. MNKD Asked SNY Not To Report – The fact that SNY didn’t report Afrezza data could have nothing to do with whether or not sales were a hit. MNKD could have asked SNY to not report the data so that they had the opportunity to reveal the info in their own report.
  3. Afrezza Did Better Than Expected – If Afrezza did better than expected, it would give more reason for MannKind to want to report the data. It would also open opportunity for insider traders as the price of MNKD is falling right now. If insiders know that Afrezza did well, they could wait to see a new floor and pick up stocks for a low cost before the reveal of the positive data.

Nonetheless, we won’t know whether or not Afrezza did well until the MNKD earnings report; so, it’s best not to jump to conclusions.

Why I Think MNKD Will Grow Long Term Regardless

For me, none of this changes how I feel about MannKind stock. The reality is that even now, we are still in the very beginning phases of Afrezza; and Afrezza is an amazing product. All in all, I think that over the long run Afrezza’s popularity among diabetics will grow; increasing sales and the stock price along with it. So, personally, I’m ignoring the noise and going on with business as usual.

What Do You Think?

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

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