Jason Kolbert Boosts Price Target for MannKind Corporation (MNKD) to $7; Here’s Why

Mannkind caught a price target boost from Maxim in the wake of a positive label revision for Afrezza.


In a note published today, Maxim analyst Jason Kolbert says he sees reduced risk in MannKind Corporation (NASDAQ:MNKD) story, following recent news that the FDA has approved the label revision for the company’s flagship treatment Afrezza. As such, Kolbert boosts his price target for MNKD shares from $4.00 to $7.00, while reiterating a Buy rating on the stock.

Kolbert stated, “The label now includes the differentiated PK/PD profile for Afrezza demonstrating linear kinetics. Both the 4 unit and 12 unit doses appear in the blood in one minute and reach effective (effects on insulin) levels in 12 minutes. Peak effects are reached at 35 minutes for 4 units and 45 minutes for 12 units with the 4 unit and 12 unit returning to baseline after 90 minutes and 180 minutes, respectively. The rapid action and exit should help patients not only better control mealtime sugar levels but also overnight hyperglycemia or hypoglycemia.”

Bottom line: “We believe the label revision translates into lower risk for the relaunch of Afrezza which drives a new price target of $7.” (To watch Kolbert’s track record, click here)

While Kolbert emphasizes increased conviction in his Buy rating, two other healthcare analysts rate MannKind stock a Sell. With a downside potential of 26%, the stock’s consensus target price stands at $3.77.

MannKind also recently announced a warrant exchange, exchanging series A and series B warrants that contained reset provisions and limited the amount of capital the company could raise to $10 million. With the warrants off the table (for 1.3 million shares of common stock), the company will have 22 million available shares and can raise as much as $50 million through its ATM as it continues to undergo capital restructuring.

MannKind focuses on the development and commercialization of inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension. MannKind is currently commercializing Afrezza® (insulin human) inhalation powder, the Company’s first FDA approved product, in the United States, where it is available by prescription from pharmacies nationwide.