MannKind Corporation (NASDAQ: MNKD)
MannKind is one of my favorite companies in biotech; and oh boy did I get some criticism for admitting it a few months ago. Unfortunately, Goldman Sachs downgraded the stock earlier in the year; giving investors a bad feeling about MNKD and causing declines that lasted for months. However, I kept my faith in the stock, and I’m glad I did. Today, MannKind is on a bull run, and has been for several trading sessions. Now, the big question is, “How long can the bull run last?” Personally, I think we’re going to see long term gains, here’s why…
MannKind’s Innovation In The Delivery Of Medicine
While Afrezza was the butt of the rating downgrade from Goldman Sachs a while ago, I think that the inhaled insulin is astonishing. Having family members that are diabetic has given me a real handle on what the disease actually is; and what diabetics go through on a day to day basis. Unfortunately, this includes painful injections of insulin on a regular basis. However, Afrezza takes some of those injections away. For those of you who don’t know, Afrezza is a powder that’s inhaled which delivers insulin to diabetics; no needles necessary.
Unfortunately however, Afrezza got a bit of a bad reputation in the pre-launch. Without advertising or promotion of any kind, MannKind simply wasn’t able to meet analyst expectations with respect to sales of the inhaled insulin. As a result, MNKD continued to fall in the market. However, for some reason, I still saw Afrezza as valuable; and I’m glad I did.
Recently, mainstream analyst Jefferies released a research note about MannKind; more specifically about Afrezza. In the research note, Jefferies outlined the results of a survey that it had sent to several endocrinologists; receiving more than 50 survey responses. The survey concluded that 65% of responding physicians not only knew about Afrezza, but planned on using it in the future. So, while the soft launch didn’t lead to as many sales as expected; the inhaled insulin is becoming a brand of its own in the world of endocrinologists. As a result of this data release, the value of MannKind started moving in the upward direction; and hasn’t stopped moving yet!
MNKD Recently Addressed Its Biggest Issue
In my line of work, I get to talk to several different investors on a regular basis. In conversations that I’ve had about MannKind, I’ve found that many investors really have a love/hate relationship with the stock. The reality is that while many, even on the bearish side, love the product, they don’t love the management of the company. Unfortunately, they simply didn’t see a clear path for growth; and even a good product can’t generate gains without good management. While I beg to differ with this argument, it seems as though MannKind is working on their management anyway.
Recently, we received news that the company has elected a new member to its board of directors; and that new member is well decorated in the biotechnology arena. That new member’s name is Dr. James S. Shannon. Here’s a brief overview of the positions Dr. Shannon has held in the past…
- Director of MannKind Corporation.
- Chief Medical Officer of GlaxoSmithKline
- Head of Drug Regulatory Affairs at Ciba-Geigy LTD.
- Oversight of R&D Groups at Sandoz.
And those are just a few positions. Dr. Shannon has far more experience under his belt.
What To Expect Moving Forward
Moving forward, I’m expecting great things from MNKD. While there may have been cause for concern in the past, I think the company is making great strides and investors are really starting to notice. Considering everything I know about Afrezza and MNKD as a whole, I’m expecting to see gains in the long run!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!
