MannKind Corporation (NASDAQ: MNKD)
If you follow my work here or elsewhere, you know that MannKind is one of my favorite stocks to follow. Aside from the debate revolving around the stock’s ability to grow, I’m intrigued by the fact that this company has come up with a way to deliver insulin to the body without an injection. If you follow the stock, you know that the debate revolving around it is a big argument with regard to whether or not Afrezza will pick MNKD up in the market. Personally, I think that the answer is yes, but that’s not the only reason I’ve got such a bullish long-term opinion on the stock. While MNKD has had a bit of a rough time recently, I’m really not concerned; and I don’t think most longs are. So today, we’ll discuss why MNKD longs aren’t concerned about declines and what we can expect from the stock moving forward. So, let’s get right to it…
Afrezza Will Be The Goose That Lays The Golden Egg For MNKD In The Long Term
One of the biggest pieces to the argument revolving around MannKind stock is Afrezza. Afrezza is an insulin that instead of being delivered to the human body through an injection, is delivered through an inhaler. This is a big move in the world of medicine and was made possible by MannKind’s proprietary technosphere technology. However, bears on the stock argue that Afrezza isn’t going to be as popular as the company hopes based on the sales seen so far. While I can understand the argument and respect the right to personal opinions, I have to disagree with this assessment.
The first thing we need to keep in mind when gauging the popularity of Afrezza is the fact that the insulin hasn’t even made it to an official launch. What we’ve seen so far has been a pre-launch; one with absolutely no advertising. So, we can’t expect to see massive sales volume. However, we can expect to see sales volume pick up relatively soon. In just a few weeks, the Direct-to-Consumer campaign for Afrezza will start; and this is when we’re likely to see sales climb!
MannKind Has So Much More To Offer In The Long Term
Another thing to keep in mind is that long investors in MNKD aren’t really concerned with what’s going on now. Instead, they’re paying close attention to the intrinsic value of the company; a value that includes far more than Afrezza. MannKind longs are confident that Afrezza won’t be the only major hit; and for good reason. The company has announced that they are working on new medications using their patented technosphere technology; and considering that there are several medications that can only be delivered through an injection, the scope of the company’s ability to change the way we see medication is relatively large! As a person that is deathly afraid of needles in the first place, this is incredibly interesting to me; and while not everyone has a fear of needles, most investors can see how using technosphere to deliver medications can be incredibly profitable.
What To Expect From MNKD Moving Forward
The bottom line is that MannKind is destined for growth. We can expect to see massive increases in the value of the stock as Afrezza moves into the Direct-to-Consumer campaign; which will happen relatively soon. Also, in the long run, MNKD is poised for growth. As a result of the lack of understanding in the product, the stock has been kept relatively low; making it a cheap way to realize long term gains. As the company continues to produce incredible medications, it will have no choice but to climb in the long run.
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!