Al Mann ResignsMNKD recently announced that on February 17, 2016, the founder of the company and Executive Chairman, Al Mann had made the decision to resign from his position. According to the release, the resignation was effective immediately. While Mann will no longer be acting as the Executive Chairman, he will continue to advise MannKind as an employee in a non-executive capacity. In a statement, Matthew Pfeffer, current CEO, had the following to say:
Al founded this company in order to bring his unique flair for medical innovation to the biopharmaceutical space... We are awed by his many accomplishments during a legendary career and are proud to continue Al's decades-long pursuit of addressing the unmet needs of patients with diabetes and other serious illnesses.”
Whil Al Mann will no longer be the Executive Chairman, I'm glad to hear that he will still be part of MNKD in some capacity. In his place, the board of directors has named Kent Kresa as the Chairman of the Board and Al Mann as Chairman Emeritus of MNKD. In a statement, Kent Kresa had the following to say:
“Al is a true visionary and has created a great company with an impressive lead product and powerful technology to help patients with serious diseases... We have much to do to make his dreams come to reality, but we have the people, technology and know-how to make that happen...”
How The Market Reacted To The News
As investors, we know that the news moves the market. When bad news is released, we can expect to see bearish movement. Unfortunately, the fact that Mann has stepped down from his position is bad news for MannKind. So naturally, the stock fell in the market as a result of the announcement. In fact, following the announcement, MNKD fell nearly 10%. However, on Friday, the stock recovered in a big way, nearly erasing the losses.
What We Can Expect To See Moving Forward
While I know that the bears are going to send a slew of emails about my opinion here, I have to say that I'm still bullish on MNKD. The reality is that Al Mann and his team have come up with an incredible product. While Sanofi was dragging its feet with regard to the commercialization of Afrezza, it doesn't mean that Afrezza will not be profitable. With the relationship between Sanofi and MannKind coming to an end and big moves made by MNKD to promote Afrezza, I'm expecting to see sales climb by the end of the year. On top of Afrezza, I'm expecting to see incredibly positive information from Technosphere coming down the line. While declines are likely in the short term, I'm still expecting to see incredibly positive movement from MNKD moving forward.
What Do You Think?
Where do you think MNKD is headed moving forward and why? Let us know your opinion in the comments below!
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