MannKind Corporation (NASDAQ: MNKD)
MannKind has been a very interesting stock to watch over the past year. While the approval of Afrezza was definitely good news, everything that has happened since has really brought the stock down. Nonetheless, there are still plenty of investors that maintain faith in the company, and for good reason. If marketed properly, MNKD products could be a driving force of innovation in the medical space. Tomorrow, MNKD will be holding an investor conference at 5pm Eastern. Since last week, my phone has been ringing off of the hook with questions about what I expect to see at this conference. Today, I’ll answer some of the most commonly asked questions to the best of my abilities.
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Is MNKD Going To Sell The Company?
There have been several rumors popping up lately that MannKind is looking to sell its company. So naturally, this is the question that I am getting most often. In my opinion, I don’t believe that we will be seeing an MNKD sale. Unfortunately, the damage done by Sanofi dragging its feet has painted a grim picture for Afrezza and Technosphere. Therefore, MNKD wouldn’t necessarily be able to demand the premium it is worth if a sale were to take place. Because of this, it would be more advantageous for MNKD to hold onto its assets and work past the current hurdle the company is facing. Nonetheless, I want to hear the opinion of the company at the conference.
What About The Lawsuits?
A number of callers, and emails for that matter, have asked me about the lawsuits that have been popping up against MannKind. They want to know if I believe that the suits are warranted and how they will affect the financial position of the company. To the first part of the question, I do not believe that the lawsuits filed against MNKD are warranted. The suits claim that MNKD misled investors, but that’s not true. The reality is that MNKD has been relatively transparent with investors. Unfortunately, the company felt the pain from the Sanofi agreement just as much as investors did. Nonetheless, the wrong doing, in my opinion, was on Sanofi’s end of the agreement. When it comes to financial stability, it can be easy to be concerned. With the cost of legal defense now in the works, does MNKD really have enough money to make it past the current struggles? In my opinion, the answer is yes. Currently, the company has enough money to get it into the second half of the year. With moves made to generate stronger sales of Afrezza and license Technosphere, I believe that the company will generate further funds and do just fine. I’m expecting this opinion to be solidified through comments at the conference.
What About Afrezza?
In the last conference, MNKD said that it is working to market Afrezza. It has plans to do so through social media, Specialized Diabetes Care Centers, and more. There was also the mention of the company seeking partners to help with the commercialization. At the conference, I would like to hear about how the new marketing strategy for Afrezza is working out and whether or not the company has found a strong option for a potential partnership.
What’s Going On With Technosphere
Last we heard, MNKD had signed a collaboration agreement with Receptor Life Sciences for the use of Technosphere in several indications. The companies are working together to generate treatments for a wide range of medical ailments. What is the progress on this? Also, MNKD mentioned that it retained the rights with regard to Technosphere outside of the indications mentioned in the cooperation agreement. Are there any other licensing agreements that are likely to come down the line? I’d like to hear more about this at tomorrow’s conference.
What’s The Deal With The Sanofi Agreement
Finally, it was recently announced that the agreement between MannKind and Sanofi would be coming to an end. The companies are currently negotiating an exit. I’d like to know if Sanofi has agreed to pay MNKD any money upon the cancellation of the agreement and if so, how much! I’d also like to hear how the separation is going.
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What Do You Think?
What questions are you expecting answers to at the MNKD investor conference tomorrow? Let us know your thoughts in the comments below!
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