MannKind Corporation (MNKD) Stock | Mannkind at a Crossroads

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MannKind Corporation  (NASDAQ: MNKD)

 

MannKind Corporation (MNKD), a biotechnology company could be a target for short sellers. MannKind has brought their lead candidate AFREZZA to market but the sales have been lower than expected. AFREZZA is an inhalable diabetes treatment for type 1 and type 2 diabetics. The treatment was considered to be a significant improvement in convenience for patients not wanting to inject with insulin. AFREZZA is also faster acting than insulin. So it’s a bit surprising that sales have been lacking. On top of the low sales numbers Mannkind only gets 31.5% of total sales, while its licensing partner Sanofi gets the rest.  Leading one to wonder with low sales and the company already borrowing money, where is the future of this company heading?  Motley Fool

 

MNKD Technical Analysis

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MNKD is a stock that has been on a steep decline ever since June 8th when it closed at $7.23. The stock reached its 52 week low of $3.22 three days ago on September 22nd, down 55% from the Junes prices. Taking a further look back on the daily chart we can see before the steep decline the stock was on an impressive run up. On May 14th, the stock was trading at $3.63 and ran up to the $7.23 price in June, which is equivalent to a 99% move up in a span of less than a month. So we can see the stock is capable of making big moves which is not uncommon of biopharmaceutical companies. Looking at the daily chart further we can see a pattern of a double top formation around the $7.25 (June 8th) and $7.50 (February 10th) level. Both times the stock spiked up to that level and gave back the whole move and more within a month. That could be the resistance level for any future move up. This could be a stock to keep an eye on as the moves up are big and can happen quickly.

 

Company Profile

MannKind Corporation (MannKind), incorporated on February 14, 1991, is a biopharmaceutical company. The Company is focused on the discovery and development of therapeutic products for diseases, such as diabetes. The Company’s product candidate is AFREZZA, inhaled insulin used to control high blood sugar in adults with type one and type two diabetes and also to improve glycemic control. AFREZZA consists of a dry formulation of human insulin delivered from a small and portable inhaler. AFREZZA utilizes its Technosphere formulation technology. The Company’s Technosphere powders are based on the Company’s fumaryl diketopiperazine (FDKP), which is a potential of Hydrogen (pH)-sensitive organic molecule that self-assembles into small particles under acidic conditions. The Company manufactures AFREZZA in its Danbury, Connecticut facility. The Company has also created breath-powered, dry powder inhalers. Its inhalers can be produced in both a reusable (chronic treatment) and a single-use (acute treatment) format. The Company competes with Eli Lilly & Company, Novo Nordisk A/S, Halozyme Therapeutics, Inc., Biodel, Inc. and Dance Biopharm, Inc.  Reuters

 

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