Yet another MannKind Corporation (NASDAQ:MNKD) executive has unloaded shares in the open market to benefit from the soaring stock price. MannKind shares have gained more than 88% this year amid rising expectations that its diabetes drug Afrezza would win FDA approval on July 15. Recent rumors that the bio-pharmaceutical company could become a potential acquisition target have further fueled the stock.
MannKind executives go on a selling spree
MannKind Corporation (NASDAQ:MNKD) VP David Thomson unloaded 133,000 shares of the company in the open market on June 4. He sold them at an average price of $9.95 apiece for a total value of $1.32 million. According to his regulatory filing, Thomson now owns 102,286 shares valued at more than $1 million. Thomson had previously sold 15,091 shares at $7.50 each on May 19.
He is not the only MannKind Corporation (NASDAQ:MNKD) executive selling their holdings. Vice president Diane Palumbo sold 52,957 shares on June 3. She sold her holdings at $9.50 per share, adding up to a total of $503,091. Chief technology officer Juergen Martens reaped benefits by 65,624 shares on June 3 at an average price of $9.50. Martens now owns 114,024 shares of MannKind.
New options on MannKind available for July 25 expiration
Today, MannKind Corporation (NASDAQ:MNKD) shares opened at $10.09, a level not seen since March 19, 2010. The company still doesn’t generate revenues, but its Afrezza drug, if approved (which is highly likely), has the potential to generate more than $3.65 billion in annual sales by 2025. High expectations have given MannKind stock a valuation of close to $4 billion. Therefore, many investors remain cautious about the stock. Some others believe that the best way to play with MannKind is through options market. Yesterday, new options for MannKind became available, for the July 25th expiration.
Speaking at the Jefferies Global Healthcare Conference earlier this week, MannKind Corporation (NASDAQ:MNKD) CFO Matt Pfeffer discussed commercialization potential of Afrezza. He said the company’s Danbury facility has the capability to produce up to two billion insulin cartridges per year. The company hasn’t entirely built the facility before approval of the drug, so it will have to install equipment.
MannKind Corporation (NASDAQ:MNKD) shares were down 0.10% to $10.03 at 9:46 AM EDT on Friday.