MannKind Corporation (NASDAQ: MNKD)
I’ve been following MannKind for quite some time now, and I have to admit, I love the stock. While it may be struggling now, I don’t think we’re going to see long term struggles thanks to the inhaled insulin, Afrezza; we’ll talk about that a bit later. Nonetheless, I have conversations with several other investors all the time; of course, some of them are MNKD bears. However, when I do talk to bears, the biggest argument I run into is that MannKind has poor management. Well, it seems as though they are addressing that argument. On Thursday, MannKind announced that James S. Shannon, MD, MRCP has been elected to the board. So today, we’ll talk about who Dr. Shannon is and do a quick overview of why I think MNKD is going to the top. So, let’s get right to it…
What James Shannon Has To Offer MannKind
Dr. Shannon served as director from February 2010 until April 2012; when he left the board to become Chief Medical Officer of GlaxoSmithKline. He has also held several positions executive positions in other companies in the past such as Head of Drug Rgulatory Affairs, and oversight of R&D groups for Ciba-Geigy Ltd and Sandoz; and that’s just the tip of the ice burg. All in all, Dr. Shannon has incredible experience in the medical field and is a great addition to the MNKD team. Here’s what Alfred Mann, Executive Chairman of MannKind Corporation had to say about the new addition to the board…
“We are very pleased to welcome James back to the board of directors…His experience as a recognized pharmaceutical industry leader is invaluable to us as we accelerate the commercialization of Afrezza and build a pipeline of additional product opportunities that utilize our proprietary technologies.”
Which brings me to my next point.
MannKind Stock Is Likely To Grow Long Term | Here’s Why…
While MNKD definitely has more than its fair share of critics, I think the company is a great one that’s destined for growth. There are a few reasons for my opinion…
Afrezza Is Likely To Start Taking A Larger Percentage Of The Market – First off, the naysayers look at Afrezza sales as a reason to say the company’s stock is going to decline. Although I will admit that the commercialization of the product is going a bit slower than I’d like to see, I still have faith that the product will blow up! A recent study at Jefferies showed that 65% of responding physicians are likely to use Afrezza more in the future. Not to mention, we still haven’t seen any advertising; but the board addition announcement gives us a major clue that leads me to believe we’re going to start seeing heavy advertising. “His experience as a recognized pharmaceutical industry leader is invaluable to us as we accelerate the commercialization of Afrezza…” I’m looking for great news with regard to the commercialization over the next few months.
MannKind’s Proprietary Technology Will Become Profitable – Another part of the statement, “and build a pipeline of additional product opportunities that utilize our proprietary technologies.” One thing that investors seem to be missing all to often is the fact that Afrezza represents the delivery of a compound that could only be delivered via injection in the past. MNKD is in the process of making this possible with more medications; which in the long term is a very profitable concept.
What Do You Think?
Do you like the addition of Dr. Shannon to the board? What’s your opinion of Afrezza? Where do you think MNKD is headed in the long run? Let us know in the comments below!