After a bullish run that lasted about 3 weeks, MannKind Corporation (NASDAQ:MNKD) has had a tough week in the market this week. However, as I’ve mentioned since the stock started downtrends, I wasn’t too concerned. As a matter of fact, I saw the declines as an opportunity; and it looks like today is the day to act. MannKind has finally reached support and is likely to start climbing again. Today, we’ll talk about where support seems to be, and what we can expect from MannKind in the long run. So, let’s get right to it!
As mentioned above, MannKind seems to have finally hit support after falling for nearly a week. Yesterday, the stock fell to $5.59 before the trend started to reverse. Since the support at $5.59, we’ve seen slow, yet steady growth; insinuating that MannKind is ready to start climbing again.
If you’re a follower of CNA Finance, or my writing elsewhere, you know that I’m a huge fan of MannKind; and honestly, my opinion hasn’t changed in the slightest over the past several months. The reality is that MannKind, as with any other stock, is likely to have its ups and downs. However, the company is fundamentally strong; making it a strong investment option for those looking for long run gains.
There are a few reasons that I’m expecting to see long run gains from MannKind. First off, the company’s inhaled insulin known as Afrezza is bound to be a hit. While there were concerns revolving around the insulin in the beginning of the pre-launch that lasted for months, it seems as though data is showing that the inhaled insulin is destined to be a smash hit. A recent survey from Jefferies showed that many physicians not only know about Afrezza, but plan on using the treatment in the future. As a result, I’m expecting to see Afrezza become a very profitable product.
However, it’s also important to remember that MannKind represents far more than Afrezza; and their working on their biggest accomplishment yet at the moment. In Afrezza, the insulin is delivered through a technology known as technosphere; a technology that’s proprietary to MannKind. The company has openly announced that they are currently testing technosphere as a way to deliver other medications. So, down the road, we can expect to see more and more medications that were once injection only being delivered through an inhaler.
Finally, MannKind’s management is another important key. Although many of the people I talk to have complained about the company’s management, I simply don’t have the same complaints. Nonetheless, if you were concerned about the management, MNKD made a big change that should be pleasing to you a short while ago. The company elected Dr. James S. Shannon to the board. Dr. Shannon has extensive experience in the biotechnology space; and is well respected in the healthcare industry. So, if you did have doubts about MNKD management, the addition of Dr. Shannon should help to ease your mind.
All in all, I’m expecting to see long run growth. As with any stock, we’re going to see downtrends here and there. However, these short term dips are nothing more than buying opportunities for those that want to get in on the gains at a low cost in my opinion.