MannKind Corporation (NASDAQ: MNKD)
MannKind has been a very interesting stock to watch for quite some time. Unfortunately, for about a year, we’ve seen nothing be declines in the value of the stock as the result of poor Afrezza sales. However, there is one thing that could send MNKD soaring. Today, we’ll talk about why Afrezza sales were so poor, the one thing that could send the stock soaring, and what we can expect to see from MNKD moving forward. So, let’s get right to it!
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Why MannKind Had A Tough Time With Afrezza
Afrezza is an insulin that is inhaled rather than injected. The treatment was approved toward the end of 2014 and investors believed that it would fly off of the shelves. However, that’s not exactly what happened. Shortly after Afrezza was approved, MNKD contracted the commercialization of the treatment to a French pharmaceutical company known as Sanofi. Unfortunately,however, Sanofi has its own products, one of which was in direct competition with Afrezza. As a result, it is the belief of many investors that Sanofi decided to drag its feet through the commercialization process, leading to poor sales volume. As a result, we saw drastic declines in the value of MannKind over the past year.
This Could Send MNKD Soaring
While the relationship between Sanofi and MannKind caused sales of Afrezza to be weak, the story isn’t quite over yet. In fact, in January, it was announced that the agreement between the two companies would be coming to an end, and MNKD would have the ability to commercialize Afrezza on its own. This, in my opinion, was overwhelmingly positive news. After all, if MNKD can do a better job on the commercialization front, or even partner with another company that is known for commercialization, the value of the stock could skyrocket, and in my opinion, this is coming soon.
One of the reasons that I believe we are going to see increased sales of MannKind’s flagship product comes from an announcement the company made in January. In mid-January, MNKD offered an update to investors with regard to Afrezza and the company’s financial stability. While there was quite a bit offered during this update, there was one statement that really got my attention. The company would be partnering with Specialized Diabetes Care Centers who agreed to treat diabetes in real time with Afrezza. When this picks up, I’m expecting Afrezza sales to climb which will lead MNKD on a strong upward trend.
However, that’s not the only thing I’m expecting to see. At this point, MannKind is relatively cash strapped. As a result, for a strong commercialization to happen, it will likely need to partner with another company. While this isn’t something that’s set in stone, I’m expecting it to happen, and when it does, we can expect to see strong gains in the value of MNKD.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed expectation when it comes to MannKind. First and foremost, if the company does indeed find a commercialization partner, I’m expecting the stock to soar as Afrezza sales will likely climb. Also, with the Specialized Diabetes Care Centers agreement on the table, when this gets rolling, I’m expecting to see strength. Nonetheless, there is also a bit of downside risk here. The reality is that while, in theory, Afrezza should fly off of the shelves, we haven’t seen any evidence of such action. So, if you plan on getting involved in MNKD, make sure you know the risks.
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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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