MannKind Corporation (NASDAQ: MNKD)
Last week, I got a call from one of my readers with regard to MannKind. For those of you who are unaware, I am very transparent and enjoy speaking with my readers. If you’d like to chat, my phone number is (503) 464-6502. Anyway, I got this call from a MNKD investor last week and he had very valid questions. He was concerned with what he’s seen over the past year from MannKind and wanted a bit of clarity when it comes to what the company is doing. Today, I’ll list his primary questions, and the best answers I can provide. Before I get into this, I want to let you know that I am in no way an employee or contractor for MNKD. I love the stock, I follow it closely, but I am not an insider. So, everything said here is my own personal opinion. That being said, here are some of the key points from our chat.
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Is MNKD Here To Stay?
One of the first questions the gentleman asked me was whether or not I believe that MannKind is here to stay. He pointed out that the company’s financial position could definitely be better and that he wondered whether or not the company would need to file bankruptcy this year. In my opinion, MNKD is here to stay. In a recent presentation, Matthew J. Pfeffer, the new CEO of MNKD said that they have enough funds to get them comfortably into the second half of the year. After that, we heard of the new licensing and cooperation agreement the company signed, showing that MNKD is indeed working on bringing further funds in through technosphere. Also, with movements the company is making with regard to Afrezza, I am expecting to see an increase in sales. Between licensing and higher sales volume, MNKD should be able to drive the revenue it needs. I’m also expecting to see Sanofi pay MNKD money associated with the termination of their agreement surrounding Afrezza. This also should help with the financial position the company is in.
Will MannKind Sell Afrezza?
This was perhaps the most interesting part of the conversation. The gentleman told me that in a statement, Pfeffer said that he has not ruled out the sale of Afrezza. So, he wanted to know if a sale of the asset was likely. In my opinion, the answer is no. Unfortunately, due to Sanofi dragging its feet with regard to the launch of Afrezza, sales have been in the tubes. So, in order to sell the treatment to another pharmaceutical company, MNKD would have to accept far less than the treatment is worth. While it’s not off the table quite yet, I believe that the sale of Afrezza is highly unlikely.
Has MNKD Misled Its Investors?
The caller also stated that he was concerned with regard to the recent lawsuit that was filed against MNKD on behalf of its investors. His primary question here was, was MannKind in the wrong? In my opinion, the answer is no! The reality is that throughout the process, MNKD has been very transparent with its investors. Unfortunately, contracting with Sanofi was a bad move which led to poor sales. However, the company has never willfully misled investors which is a key point to consider when thinking about the suit.
Will MNKD Be Able To Pick Up The Pieces?
I think the overall gist of the call was a discussion with regard to whether or not MNKD will be able to pick up the pieces and grow from here. In my opinion, the answer is yes! The reality is that Sanofi was like a ball and chain that was holding the company back in a big way. Now that the agreement between MNKD and SNY is coming to an end, doors are opening for MNKD and I believe that Afrezza sales will increase. All in all, this is a great company that has fallen on hard times. However, I believe that they will indeed be able to pick up and grow from here!
Please Sign Our Petition
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Because we believe that Sanofi willfully and maliciously held back on the commercialization of Afrezza for its own gain, we have decided to launch a petition. The petition is designed to help MNKD investors recover losses by forcing the company to take Sanofi to court. If you’re a shareholder, please sign the petition here!
What Do You Think?
Where do you think MNKD is headed moving forward? Let us know your opinion in the comments below!
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