In my opinion, MannKind Corporation is one of the most interesting stocks in biotech today. The company has created an incredible product; something that no one has ever seen before. However, pre-launch sales just haven’t been what many expected. Ultimately, this caused the stock to go on a downtrend that still continues today. However, if you’re a real bull on the stock, chances are that you’re buying the declines because you know that they signify a discounted opportunity for future gains. So, what is it about the stock that makes me so bullish? Well, there are a few things…
MannKind Created Afrezza
Afrezza is an inhaled insulin that MannKind created using their proprietary “Technosphere” technology. That’s right, it’s an insulin that doesn’t need to be injected. However, I think that the value of technosphere goes far beyond Afrezza. As a matter of fact, MannKind has openly announced that they are working on more ways to use this technology. Meaning that in the future, we are likely to see more injection only medications being offered to patients in an inhaler. Ultimately, this technology has the ability to revolutionize the way we see medicine.
Afrezza Sales Are Down, But Not For Long
Also, when it comes to Afrezza, sales may be down now, but that’s not going to last forever. In the world of medicine, there are two major factors that play into sales. First and foremost, companies must advertise their products to build awareness among consumers. After all, if the end consumer doesn’t know about the medication, there’s no chance that they’re going to ask their physician about it. Also, insurance coverage plays a key role. After all, in today’s market, medication is astronomically expensive; and without insurers that are willing to cover treatments, consumers simply can’t afford them. However, MannKind is working in both of these areas…
- Consumer Awareness & Market Potential – First and foremost, MannKind intends on starting the direct to consumer phase relatively soon. This means that we’re going to start seeing commercials, printed ads, and more; informing diabetics that a before meal insulin gives them the ability to eat without giving themselves an injection. Also, I wouldn’t be surprised if the delay in the D2C phase has something to do with regulatory approval in Europe and Asia. Ultimately, MNKD is working to bring Afrezza to these areas and has increased production capacity by triple to do so. So, within the coming months, I’m expecting to see big news with regard to consumer awareness and an expanding market from MNKD.
- Insurance Coverage – In the pre-launch phase, MNKD has gotten no love from insurers. However, that’s all changing. As a matter of fact, in a recent post I read on Seeking Alpha, I found out that about 80% of major insurers are covering Afrezza in one way or another. This means that Afrezza is going to be an option that consumers can afford; thanks to insurance coverage.
MannKind may be down now, but I don’t think it will last forever. The reality is that long term investors are bullish on the stock for good reason. Unfortunately however, short term manipulation is driving this incredible company’s stock down the tubes at the moment. None the less, when D2C starts and regulatory approval in Europe and Asia starts to roll down the hill, I think the overall mood will change.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!