MannKind Corporation (NASDAQ: MNKD)
MannKind has had an incredibly hard time in the market over the past year or so, and for good reason. The first launch of the company’s flagship product, Afrezza, simply didn’t go well. So, I can understand why many investors and traders would be hesitant to get involved in the stock. Nonetheless, Afrezza Launch 2.0 start in July, and it will likely create big gains. Today, we’ll talk about why the first launch of the treatment didn’t go well, why I’m expecting the second launch to go great, and what kind of opportunity lies ahead for MNKD. So, let’s get right to it…
Why The First Launch Of Afrezza Brought MNKD Downward
As mentioned above, the first launch of Afrezza simply wasn’t a good one. However, it’s important to understand that it wasn’t MannKind’s fault. When the company received the news of approval from the United States FDA, the first thing they did was contract the commercialization of the treatment out. The problem was who the contract was signed with.
Shortly after the approval of Afrezza, MNKD signed a contract with Sanofi. Unfortunately, Sanofi had a competing insulin. Therefore, there was a bit of a conflict of interests here. While Sanofi would make some money if Afrezza took off like a rocket, the action would cause lost earnings potential on their own product. In the long run, it was better for Sanofi if Afrezza didn’t do well.
So, for about a year, we heard that the next big part of commercialization would be coming soon. However, it never seemed to come. At the end of the day, Sanofi bombed the commercialization process, dragging its feet the entire way. As a result, MNKD saw massive declines in the value of its stock.
Why The Second Launch Is Likely To Go Quite A Bit Better
While the first launch of Afrezza didn’t go very well, the second launch will likely be a hit. The truth is that there are several differences between the two. Here are some of the most important…
- MannKind Is In Charge – First and foremost, this time around, Sanofi isn’t in charge of commercialization. With MNKD leading the charge, there is no conflict of interest. Therefore, the company will work hard to make sure that the diabetic community sees Afrezza for the incredible treatment it really is
- Laser Like Focus – During the first launch, there wasn’t much focus on the audience for the treatment. When it comes to sales, finding a primary audience is incredibly important. With that said, MNKD seems to have a laser like focus on the audience they are going after. A larger part of that audience is the pediatric diabetic population. This audience has a dire need for a treatment like Afrezza.
- Stronger Data – Over the past year, MannKind has been able to compile quite a bit of data on Afrezza. The stronger data will lead to better presentations to both patients and physicians.
- Dedicated Team – Finally, this time around, MNKD has set up a dedicated team. This team’s only job is to commercialize Afrezza. They are well trained and ready to push this treatment to the market.
What I’m Expecting To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from MNKD. The reality is that the company has come up with an incredible treatment that has an inherent need in the diabetic community. Now, with a clear focus on commercialization, we’re likely to see sales of this product climb. As a result, I’m expecting to see big gains in revenue, leading to profits. When it comes to MannKind, there is tremendous upside potential here.
What Do You Think?
Where do you think MNKD is headed moving forward and why? Join the discussion in the comments below!