MannKind (MNKD) Stock: Today Is A Big Day


MannKind Corporation (NASDAQ: MNKD)

MannKind has been down an incredibly rough road over the past year. In late 2014, the company received approval from the FDA for a treatment known as Afrezza. Afrezza is an inhaled insulin designed for the treatment of diabetes. After the approval of the treatment, the company contracted the commercialization and development of the treatment to a company known as Sanofi. Unfortunately, for the first year of commercialization, Sanofi did little to nothing, leading to poor sales and massive declines in the value of MNKD stock. However, today is a big day for MNKD as it has regained commercialization rights to Afrezza from Sanofi. Today, we’ll talk about the news with regard to the commercialization and development rights, what this means for MNKD, and what we can expect to see from the stock moving forward. So, let’s get right to it…

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MannKind Officially Regains Rights To Afrezza

As mentioned above, MannKind contracted the commercialization and development of Afrezza to Sanofi shortly after the treatment’s approval by the FDA. Unfortunately however, Sanofi did a horrible job on the commercialization front, and in January, it was announced that the agreement between the two companies would be coming to an end. Today, it was announced that the full global development and commercialization rights associated with Afrezza Inhalation Powder have been transferred from Sanofi back to MannKind. According to the terms of the transfer, Sanofi will continue to distribute Afrezza from its existing inventory until MNKD begins to distribute Afrezza in the third quarter of the year. In a statement, Matthew Pfeffer, CEO at MNKD had the following to say with regard to the transfer of rights.

Today’s return of control of Afrezza is a landmark day for MannKind… We are thrilled to begin the process of making Afrezza the successful mealtime treatment for people with diabetes that we always believed it would be. In the coming weeks, we will roll out more information about our commercial team for Afrezza, the resourses that we are designing for patients and physicians, and our plans for the future.”

What This Means For MNKD

The news we received today is incredibly positive news for MNKD. The reality is that the diabetic community has an incredible need for a treatment like Afrezza. With about 10% of consumers being afraid of shots, and millions of diabetics working in areas where they have no access to public restrooms, an inhaled insulin could be a major game changer for these consumers. Now that MNKD has regained control of Afrezza, I’m expecting to see big things out of the company. First and foremost, I’m incredibly excited with regard to the Diabetes Care Centers the company announced in January, and expecting that to come online soon. On top of that, MannKind will be working on creating patient and physician resources that will likely increase the demand for Afrezza as well.

What I’m Expecting To See From MNKD Moving Forward

Throughout the past several months, we’ve seen bearish opinions surrounding MNKD. Even today, a simple search on Google will show that many believe that MannKind is going to drop in value. However, that’s not my opinion. In fact, I’m expecting to see incredible gains. The simple fact is that now that MNKD has full commercialization rights to Afrezza, we’re going to see improvements in sales thanks to the company’s plans.  All in all, I’m incredibly excited to see what comes of MNKD in both the short and long run.

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What Do You Think?

Where do you think MNKD is headed and why? Let us know your opinion in the comments below!

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