MannKind (MNKD) Stock: Is Now The Time To Buy?


MannKind Corporation (NASDAQ: MNKD)

MannKind Corporation has been a very interesting stock to follow as of late. While we’ve seen plenty of ups and plenty of downs, the value of the stock has been sticking around $1 per share. However, I’m not expecting that to last much longer. In fact, I believe that the stock is going to soar. With recent news surrounding Afrezza, short interest down, and a goal-oriented staff ready to move the needle, it’s only a matter of time before we see gains on MNKD. Here’s how I see it…

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MNKD Short Interest Is Down

For some time now, MannKind has been dealing with incredibly high short interest, and that’s a horrible thing. After all, short interest is a bet by investors that the stock is likely to fall in value, and, with short interest high, investor sentiment usually drags the value of a stock downward.

Nonetheless, short interest surrounding MNKD is starting to fall. In fact, according to a June publication by FINRA, the total short interest on the stock came to 86.48 million shares in the month. This brings the number down 11.05% from recent updates, when 97.22 million shares were sold short. The fact that short interest is declining is a great thing, as it shows that investor sentiment surrounding the stock is improving.

Recent News That Will Likely Increase Afrezza Sales

The reason that MNKD has had a rough time in the market over the past year or so is the fact that its flagship candidate, Afrezza, just isn’t flying off of the shelves as investors thought it would. Nonetheless, the company released recent news that is overwhelmingly promising for Afrezza sales and for MannKind as a whole.

MNKD announced that it recently joined forces with JDRF, a foundation with a goal of funding research into the treatment and cure for type 1 diabetes. This collaboration is incredibly important, as the goal of the collaboration will be to advance new treatments and therapies as well as to use Afrezza as a primary treatment for the pediatric diabetic population. This will likely cause sales to climb in a big way over the long run, helping lead to big gains in MNKD stock. In a statement, Dr. Ray Urbanski, CMO at MannKind, had the following to offer with regard to the collaboration:

We are excited to be working with JDRF and the leading scientific experts, community physicians, and people with diabetes that are associated with this organization… We have already begun to evaluate Afrezza for use in the pediatric population and we look forward to working with JDRF to advance our mutual interests in advancing therapies for all people with type 1 diabetes.”

What We Can Expect To See From MNKD Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from MannKind. While the company has fallen on hard times as of late, investors are focused on Afrezza sales, and the new collaboration will likely lead to stronger sales volume. This will send the value of the stock upward in a big way. However, it’s not the only reason I’m bullish.

Currently, MNKD is working to find new indications for technosphere, the technology that allows Afrezza to be inhaled. They announced a collaboration months ago that will look into treatments for several ailments. I’m expecting this to lead to strong profits in the long run as these treatments become available. All in all, MNKD may have a rough road ahead in the short run, but the long-run picture looks solid.

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What Do You Think?

Where do you think MNKD is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance!

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