MannKind Corporation (NASDAQ: MNKD)
MannKind has been having an incredibly hard time in the market over the past year or so. However, things are finally starting to look up for the company, and it’s my belief that now is likely a very good time to buy. Today, we’ll talk about why the company has been struggling, what has changed, and why now is a great time to start looking at MNKD. So, let’s get right to it…
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Why MNKD Has Had Such A Rough Time In The Market
For MNKD, the problems were rooted in a decision that was made in late 2014. Once the company’s flagship product (Afrezza) was approved, the company made the decision to contract the commercialization of the treatment to Sanofi. While Sanofi did decide to commercialize the treatment, their intentions didn’t seem very positive. You see, Sanofi has a drug that competes with Afrezza. As such, by properly commercializing Afrezza, Sanofi would be giving up some of its profits to the competing treatment. As a result, Sanofi decided to drag its feet.
Sadly, commercialization efforts with regard to Afrezza by Sanofi ended up being little to nothing, and that weighed heavy on MannKind. Unfortunately, with poor sales volume, MNKD investors started to drop off like flies, leading the company’s stock down to incredible lows. In fact, because of the poor sales volume, some investors believed that MNKD was going to file bankruptcy. The prospect of a bankruptcy only sent the stock down further. However, things are changing, and for the better!
What Has Changed Since
In January, it was announced that the agreement between MNKD and Sanofi was coming to an end. This would effectively give MannKind full commercialization rights to Afrezza. The completion of the transfer finally was announced very recently.
Moreso, there was another big change that is a signal to get involved in MNKD. You see, the concept of bankruptcy has brought the stock down to incredible lows. Nonetheless, the company recently announced that 500M shelf filling should sustain the company financially for at least the next two to three years! So at this point, bankruptcy is off of the table, and it’s time to focus on growth.
Why I Believe It’s A Great Time To Get Involved In MNKD
The first factor for me is that bankruptcy is off of the table. This is very important. However, it’s not the only reason that I’ve got a relatively bullish opinion of MNKD. The reality is that the company having full commercialization rights for Afrezza is overwhelmingly positive news, as I believe that they will do a much better job than Sanofi did. In fact, as the announcement was being made, it was clear that MannKind was going to work harder than Sanofi on this. The company announced in January that it was already working out a deal with Specialized Diabetes Care Centers that would cost MNKD nothing and lead to big sales of Afrezza. Since then, we’ve heard even more positive news with regard to commercialization. Just a few days ago, we found out that MNKD has made the decision to hire a VP of Marketing and a VP of Market Value. These are going to be key players in the commercialization of Afrezza.
It is also worth mentioning that we are going to receive news with regard to the company’s commercialization efforts very soon. In fact, the company had scheduled an analyst call for April 18th to discuss commercialization. However, as a result of the new hires, the call has been postponed until April 26th at 5pm Eastern Time. I believe that this call is going to be a catalyst that sends MNKD up in a big way. With bankruptcy off of the table, all MNKD needs to do is show that they will be pushing Afrezza sales up, and the stock will head back for gains. All in all, things are looking great for MNKD at the moment.
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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!
[Image Courtesy of Pixabay]