MannKind Corporation (NASDAQ: MNKD)
MannKind stock leads to some heavy debates between the bulls and the bears; and for good reason. The bulls know that Afrezza is likely to change the way diabetics view insulin while the bears look to the fact that the inhaled insulin proved to be relatively weak in the sales arena during the pre-launch. There’s no doubt in my mind that Afrezza being successful will turn into a successful run for MNKD; and I believe that over time, this is going to happen. However, if you’re a bull, I also think that it’s important to understand the storm that’s coming for the stock; and be willing to weather the storm. So, what am I talking about?
MannKind Is A Heavily Shorted Stock
According to recent data, MannKind’s short interest has skyrocketed; making it the fifth most shorted stock on the market today. As a matter of fact, shorts make up more than 50% of MannKind’s float; which will definitely lead to some heavy volatility in the coming months. However, if you’re a bull, I’m here to tell you, it’s worth riding out the storm; and if you’re not already in, you may want to strongly consider buying the dips. The bottom line is that MNKD is a very strong company with a very strong product that’s more likely than not to succeed. The key here that investors will need to keep in mind is patience. As I mentioned above, there’s no doubt in my mind that Afrezza and MNKD will be successful. Here’s why.
Why MNKD is A Great Long Term Investment
While MannKind’s growth may be up in the air at the moment, I’m a firm believer that this one is going to skyrocket in the long run. There are several reasons that I believe this to be the truth…
- Afrezza – Since the primary conversation revolving around MannKind has quite a bit to do with Afrezza, I think it’s important that that’s where we start. For those of you who haven’t heard of it, Afrezza is an inhaled powder that delivers insulin to the human body. In the past, insulin could only be delivered through an injection. While sales on the product are low now, it’s important to remember that the drug is still in pre-launch phase and hasn’t been advertised at all. However, that’s going to change very soon. As mentioned in previous posts, Afrezza is planned to move into the Direct-to-Consumer campaign within the next few weeks. This is likely to really pick up sales; and in tern help with MNKD growth.
- Technosphere – While most of the conversation about MannKind seems to be revolving around Afrezza, I think it’s important that we remember what makes Afrezza possible. MannKind’s proprietary technology, known as technosphere, allows insulin to be delivered to the body through an inhaler; and insulin isn’t going to be the only endpoint for this technology. As a matter of fact, MannKind has openly announced that they are currently in the process of testing technosphere for other indications. Now, they haven’t said what they are testing or why, but I’d imagine that any injection only medication that will be able to be delivered through an inhaled powder is likely to be a hit.
- MannKind’s Team – Finally, I know that there has been a bit of a debate about management and the team at MannKind. However, all of the negative I’ve heard points to Sanofi, not MannKind directly. The bottom line is that MannKind has great management and their team of doctors and scientists are just as strong.
Given the factors above, I think we’re going to see long term growth. However, it’s important to note that short interest is likely to create quite a few bumps in the road. Nonetheless, if bulls are willing to weather the storm, they’re going to be very likely to see gains!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!