MannKind Corporation (MNKD): Short-Term Outlook, Long-Term Drivers
MannKind Corporation (NASDAQ:MNKD) has had a bit of a hard time over the past few months. However, about 2 weeks ago, that all changed as a Jefferies research note showed that 65% of the endocrinologists they surveyed stated that they not only knew about Afrezza, but plan to start using it more often. Unfortunately however, the stock peaked out on the 19th and started falling again. Nonetheless, it’s back up today; leading to a big question: Where will MNKD go next?
Today, we’ll take a look at what we’re seeing in the market and discuss what we can expect to see in both the short and long term outlooks.
What I Expect To See In The Short Term
When predicting the short term movements in stocks, I try my best to keep the fundamental data out of it. With that said, I tend to look for trends in the chart that are signs of a coming breakout in one direction or the other. Looking at the chart to the left, I see a breakout on the horizons. What we’re currently seeing from MannKind is a common pattern that we tend to see in the market called a flag. For a flag to happen, an asset has to have a great climb; then, the market stalls. As you can see, that’s exactly what we’re seeing from MNKD. What this means is that the market is taking a bit of a break before it starts to move again; and in this particular case, I think we can expect it to move in the positive direction when it does break.
What I Expect To See In The Long Run
If you follow my writing here or elsewhere, you already know that I’m a big time MannKind bull. While management needed work, it seems as though the company is working on that. However, when it comes to product, innovation, and potential, MannKind’s got it in the bag! Here’s how I see it:
- Management – In an effort to strengthen their management, MannKind has elected James S. Shannon, MD, MRCP to their board. Dr. Shannon is incredibly talented and well known in the biopharmaceutical space, and is a great addition to the team. I wrote about this addition in detail recently. To learn more, click here.
- Afrezza – MannKind is the producer of the world’s first inhaled insulin, known as Afrezza. While sales have started out a bit lack luster, I think this is going to change soon. First off, because Afrezza dissolves into the system faster than competing products, it will prove to be more effective for diabetics. Not to mention the fact that Jefferies released a research note showing that endocrinologists not only know about Afrezza, but plan on using it more in the future.
- Beyond Afrezza – Afrezza represents far more than insulin. The inhaled powder represents a way to deliver medications that were once injection only. As a matter of fact, when announcing the new addition to the board, the following quote really caught my attention… “(Dr. Shannon’s) experience as a recognized pharmaceutical industry leader is invaluable to us as we accelerate the commercialization of Afrezza and build a pipeline of additional product opportunities that use our proprietary technologies.” One of those proprietary technologies being the powder that delivers insulin in Afrezza!
All of that being said, I’m expecting to see tremendous growth from MannKind in the long run.