MannKind (MNKD) Stock: One Thing The Company Could Do To Return Value


MannKind Corporation (NASDAQ: MNKD)

MannKind Corporation has had a rough time in the market for a couple years at this point, and for good reason. The company simply can’t seem to sell its flagship product. As a result, the stock has taken a dive and is now trading in the penny category. However, there is one thing the company could do to return value to its shareholders. Today, we’ll talk about what that is, why MNKD needs to do it, and what I’m expecting to see from the stock ahead.

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MNKD Could Actually Sell Afrezza!

The one thing that MannKind could do to really return value to shareholders is to sell Afrezza. I’m not talking about selling it inhaler-by-inhaler to patients. No, I’m talking about selling the product as a whole, the asset, to another company.

Here’s the gist of it… MNKD simply can’t seem to sell their product to consumers. In the first go around, I stuck with the company as I believed that the issues were on Sanofi’s side. However, since the company started the second launch of the product, the launch in which it has control, we’ve seen nothing different. Sales growth isn’t there, and with a need to sell tens of thousands of prescriptions to stay above water, the company is in trouble. Chances of it reaching this mark are slim to none.

However, if MNKD was willing to sell the asset outright, there would be two big benefits:

  • Shareholder Value – First and foremost, if MannKind did sell Afrezza outright, the company would be able to use the proceeds from the sale to return value to shareholders. This may also give the company the ability to work on other treatments that may be easier to commercialize in the long run (for example, the EpiPen competition product they have mentioned).
  • Addressing Medical Needs – The truth is that there are several people that need a treatment like Afrezza. However, because of the poor commercialization effort by MNKD, these people don’t have it. By selling the asset, the buyer would likely know how to commercialize this type of product, bringing treatment availability upward, and making sure that those who need it, have it.

Why The Company Needs To Sell Afrezza

MNKD is in a very rough spot at the moment. With Afrezza’s underperformance, they are simply waiting for the sand to run out of the timer. At the end of the day, the company just doesn’t have the money to survive without positive sales, and it doesn’t have the capability to get people interested in the product. So really, there are a couple of feasible options that I can see here. Unfortunately, the best option is to sell the asset to a company that’s going to do something with it!

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What I’m Expecting To See Ahead

I’ve tried to maintain a bullish opinion with regard to MNKD, but those efforts have proven to be unfruitful. At the end of the day, MannKind is not a company that’s thriving, and when it comes to surviving, they barely make the cut there. The bottom line is that the company is struggling and, until something big happens, will likely continue down the same path. All in all, I’m expecting to see further declines on the stock.

Update – CNA Finance Chief Strategic Analyst, Kenny Soulstring, has weighed in on MNKD. To see what he has to say, click here!  For a limited time, all analysis by Mr. Soulstring is offered 100% free. Get in while you still can by subscribing below!

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