MannKind Corporation (NASDAQ: MNKD) is having yet another incredibly strong start to the trading session this morning, and for good reason. It seems as though after the positive news released last week, investor confidence is soaring and the company has the opportunity to see incredible growth ahead. Today, we’ll talk about:
- Why the gains may just be the beginning;
- what we’re seeing from MNKD stock in the market today; and
- what we’ll be watching for ahead.
Why MNKD Gains May Just Be The Beginning
As mentioned above, MannKind has been flying in the market as of late. Ultimately, the gains are the result of a worldwide exclusive licensing and collaboration agreement entered into with United Therapeutics (UTHR). Under the terms of the agreement, United will license the dry powder technology known as technosphere for the development of an inhalable version of teprostinil. The treatment is currently under development and being studied for pulmonary arterial hypertension.
As a result of the agreement, MNKD may receive quite a bit of money. The deal starts out with an initial payment of $45 million to the company. On top of that MNKD has the ability to get its hands on $50 million in various milestone payments and double-digit royalties should the treatment be approved.
A Strong Financial Foundation At The Right Time
MannKind has struggled in the market for some time now due to poor sales of its inhaled insulin known as Afrezza. Ultimately, many believed that the company was going to have a need to access funding, potentially through a dilutive transaction. However, the tides seem to be shifting.
First and foremost, there is no longer a need for MNKD to access funding any time soon. With the initial $45 million injection of funding, the company can survive for some time. On top of that, in the most recent earnings report, released on August 2, 2018, MNKD reported the highest number of Afrezza sales ever, attributing the increase to physician trial and adoption. With improving commercialization efforts and further validation of the technosphere technology through the relationship with United, it seems as though everything is coming together for the company.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. While MannKind has struggled in the past, recent news surrounding the company has been overwhelmingly positive. With funding secured, validation of technosphere taking place, and Afrezza sales making their way upward, investors have a lot to be excited about and that excitement is turning into consistent gains. Today, those gains are continuing. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:53), MNKD is trading at $1.97 per share after a gain of $0.19 per share or 10.67% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MNKD. In particular, we’re interested in following the company’s ongoing efforts to improve sales of Afrezza as well as the work surrounding teprostinil. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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