MannKind Corporation (NASDAQ: MNKD)
Last week, as scheduled, MannKind released its earnings report. Although the company did meet estimations with regard to earnings per share, there’s one factor that seems to be upsetting investors. Sales of Afrezza, MannKind’s inhaled insulin, missed the mark with regard to analyst expectations. So below, we’ll talk about Afrezza sales and what analysts expected, discuss the road blocks MNKD is currently facing with Afrezza, and talk about whether or not the stock is likely to pick back up any time soon.
MannKind Afrezza Sales Reach $1.1 Million
Along with their earnings, MannKind announced that Afrezza reached $1.1 million in sales in France with the help of the distributor Sanofi SA (ADR) (NYSE: SNY). Unfortunately, that was a big miss from the expectations Wall Street analysts set fourth of $3 to $4 million. Which leads us to the next question….
Why Are Afrezza Sales So Low
The reality is that while MNKD did miss analyst expectations with regard to Afrezza sales, there are a few things that we have to keep in mind…
- Afrezza Hasn’t Fully Launched – We’re still in the midst of a pre-launch phase for Afrezza. The $1.1 million in sales so far is all word of mouth growth.
- What Patients Have To Do To Get A Prescription – In order to be prescribed Afrezza at the moment, patients have to go through a bit of legal red tape; rather than just asking their doctors for the prescription. However, more and more people are asking to be prescribed the inhaled insulin.
- No Advertising – Have you noticed a TV, radio, magazine, billboard, or any other type of ad for Afrezza? No you haven’t, because they don’t exist at the moment. The reality is that there hasn’t been any advertising at all around the inhaled insulin as it simply hasn’t hit that phase yet.
What To Keep In Mind Moving Forward
I can understand why investors are a bit concerned over MNKD and Afrezza sales. However, I’m personally not that concerned. The reality is that we are still in pre-launch mode with this one. Nonetheless, Afrezza is a great product that has the ability to reduce the number of blood sugar spikes a patient experiences. Not to mention the fact that the technology used to deliver the insulin may be used to deliver other injection only medications in the future. All in all, I haven’t given up the fight for MNKD and I don’t think I will any time soon. While we are likely to see short term declines here and there, I’m expecting to see long run gains.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!