MannKind Corporation (NASDAQ: MNKD)
MannKind is a very interesting stock in my opinion. That’s because I’ve never seen another stock invoke such emotion, debate and passion among traders. Those that are bullish on the stock are die-hard bulls and those that are bearish swear by their opinions. With that said, I’ll start by letting you know that I’m a bull. I have been a bull on the stock since last year and I’m glad that I’ve maintained my opinion. Based on what we’ve seen from MNKD recently, I don’t think bulls will be waiting much longer for gains either. Today, we’ll talk about why.
MannKind Is Granted Dual Listing On TAVE
MannKind has been releasing a slew of positive news as of late. Most recently, the company announced last week that the Tel Aviv Stock Exchange has approved a new listing of MNKD common shares. The new listing will be available starting October 28. The company will also remain listed on the NASDAQ global index. This is great news for MNKD as it is likely to broaden the spectrum with regard to investors. Here’s what Hakan Edstrom, President and CEO of MannKind had to say during the announcement…
“The new listing also offers an opportunity to expand and diversify our shareholder base by increasing our exposure and improving our accessibility to Israeli investors… This listing is also an extension of the long-standing relationship between our Executive Chairman, Alfred Mann, and the Israeli biotechnology industry, including the Alfred Mann Institute at the Technion.”
This Isn’t The Only Good News We’ve Heard From MNKD Recently
While the dual listing is definitely positive, it’s not the only bit of good news we’ve heard from MannKind recently. In fact, there is quite a bit going on that really halts the concerns of bearish investors. Here are just a few bits of information that you should know:
Insurance Is Moving In The Right Direction – One of the biggest concerns with regard to MannKind has been sales of what was expected to be a blockbuster drug, Afrezza. Simply put, sales haven’t gone as well as most investors would have liked to have seen. Nonetheless, things are starting to fall in line, which will lead to solid sales figures. One of the biggest hurdles has been insurance. At this point, many insurance companies are covering Afrezza, but they are doing so in a tier that has higher prices for consumers and limitations. Sanofi is currently negotiating with insurance companies to bring Afrezza into tier 2, the tier that will likely lead to incredible sales volume. I recently wrote a post that explains the insurance issue in detail. Find out more about tiers and how negotiations between SNY and insurance companies will lead to climbing Afrezza sales here.
Advertising Is Beginning – Another primary concern with regard to sales has been advertising. Unfortunately, for the first several months Afrezza was approved, we saw no advertising which supported the bears with regard to their MNKD opinions. Nonetheless, that is changing as well. In fact at a recent presentation, MNKD announced that Sanofi has begun a string of magazine and online advertisements. This will increase consumer awareness, ultimately leading to more sales.
Prescriptions Are Starting To Head In The Right Direction – If you pay close attention to prescription numbers, it’s easy to see that prescriptions for Afrezza are rising. They aren’t quite where we’d like to see them, but they are moving up. This is a sign that the inhaled insulin and its advertising is being well-received.
Regulatory Approval – Finally, while MannKind has received regulatory approval for Afrezza in the United States, they haven’t yet received approval abroad. However, approval in Europe and Asia have been in the works for quite some time now, and I’m expecting to see that go through relatively soon.
MannKind Reports Earnings One Week From Today
Finally, MannKind is set to report earnings on Monday, November 2nd. I’m expecting for this to be the next positive catalyst for the stock. While analysts are calling for a loss of $0.06 per share, I don’t think that all is being taken into account. The company has worked to reduce expenses, and sales are starting to rise. With that said, I’m expecting to see an earnings beat this quarter.
What Do You Think?
Where do you think MNKD is headed and why? Let us know your opinion in the comments below!
[Image Courtesy of News Times]