MannKind Corporation (NASDAQ: MNKD)
MannKind has been dealing with quite a bit of trouble in the market over the past year. Even though the company produced a product that is likely to revolutionize the way we treat diabetes, the stock has been plummeting. Nevertheless, at its current price, I view MNKD as a steal! Today, we’ll talk about why MannKind has had such a rough time, a big recent change that’s likely to lead to growth, and what we can expect to see from the stock moving forward.
Why MNKD Has Had Such A Hard Time As Of Late
As mentioned above, MannKind has been plummeting in the market for quite some time. The declines revolve around Afrezza, the company’s innovative treatment for diabetes. Afrezza is an inhaled insulin that takes away the need for injections. Naturally, investors believed that once the treatment was approved, it would fly off of the shelves, leading to strong revenue and gains in the value of MNKD. Unfortunately, that didn’t exactly happen.
In late 2014, MannKind partnered with Sanofi for the commercialization of Afrezza. Since then, Sanofi has delayed the commercialization, leading to poor sales volume and massive declines in the value of MNKD. The overwhelming opinion among MNKD investors is that Sanofi did this on purpose because Afrezza represents a conflict of interest. As a result, we have recently launched a petition to help MannKind investors recuperate their losses associated with this partnership.
A Big Change That Puts The Ball Back In Play
Earlier this month, we learned that the partnership between MannKind and Sanofi was coming to an end. While this caused MNKD to crash in the market, I don’t necessarily view this as a bad thing. As mentioned above, Sanofi’s botched launch of Afrezza is the reason that MNKD is struggling at the moment. So, keeping them on board is simply a bad move for the company and its investors.
The reality is that for MannKind to see stronger Afrezza sales volume, it really wouldn’t take much work. After all, during the Direct to Consumer phase, the only thing Sanofi did was launch online and magazine ads. This literally falls below the bare minimum of what we would expect to see from a company that’s in charge of marketing a newly approved treatment. The truth is that launching a simple television ad would likely send Afrezza sales climbing! Now that MannKind isn’t at the mercy of Sanofi, this could be done relatively easily, sending MNKD sales and stock prices soaring.
What We Can Expect From MNKD Moving Forward
Moving forward, I have a very bullish opinion of what we can expect to see from MNKD. The reality is that after the massive declines we’ve seen on the stock, MannKind is trading at an incredible discount. Now that they are not tied to the ball and chain that is Sanofi, the company will soon be free to market Afrezza however they would like. Currently, they are looking for another partner to help with the commercialization of Afrezza. If the company chooses correctly, Afrezza may finally fly off of the shelves as investors expected to see in the first place. All in all, while we are likely to see a continuance of short term volatility, I’m expecting to see long run gains!
What Do You Think?
Where do you think MNKD is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Forbes]