As the earnings season winds down, Piper Jaffray analyst Joshua Schimmer provides a 2H16 outlook for shares of MannKind Corporation (NASDAQ:MNKD). MNKD is full speed ahead in its relaunch efforts for its lead pipeline drug Afrezza, a rapid-acting inhaled insulin that may help adult diabetes patients with blood sugar control.
The team at MNKD has mapped fresh commercial strategies as well as new reimbursement strategies to combat its “cash-strapped” present and worries of future significant dilution to continue to fund operations.
The question becomes whether MNKD can drive momentum for adoption of its leading pipeline without overstepping on spending. For Schimmer, the biotech firm must tackle an uphill challenge in overcoming a formidable treatment landscape, which proves to present quite an obstacle when considering the saturation of insulin competition.
Subsequently, Schimmer reiterates an Underweight rating on MNKD with a $0.10 price target, which represents an almost 90% downside from where the shares last closed.
Schimmer comments, “Sanofi has exited the picture and has transferred all of Afrezza rights back to MNKD. Given the dire cash position of the company, we remain skeptical about the relaunch strategies and their impact on Afrezza’s prescription numbers. While early signs point to an inflection in IMS scrip trends, there is quite a long way to go before the company is anywhere close to breakeven.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Joshua Schimmer is ranked #3,977 out of 4,124 analysts. Schimmer has a 40% success rate and faces a loss of 6.3% in his yearly returns. However, when recommending MNKD, Schimmer gains 14.2% in average profits on the stock.
TipRanks analytics exhibit MNKD as a Sell. 100% of analysts polled in the last 3 months by TipRanks rate a Sell on MNKD. The consensus price target stands at $0.10, marking a nearly 90% downside from where the stock is currently trading.