Just after a U.S. Food and Drug Administration advisory panel recommended the approval of MannKind Corporation (NASDAQ:MNKD)’s insulin inhaler, Afrezza, the FDA ruled to extend the review date of the drug. The new July 15 date will give the FDA time to fully review all of the information surrounding the drug, but does this change how people are investing with MannKind? Some analysts are arguing to BUY and HOLD MannKind, citing the future approval of the drub by the FDA, while other analysts are recommending SELL MannKind, noting concerns with the overall picture.
Analysts Christopher James, Cory Kasimov and Joshua Schimmer recently revealed their recommendations about MannKind Corporation (NASDAQ:MNKD), but to see all analyst recommendations, download TipRanks.
Brinson Patrick analyst Christopher James recommends BUY MannKind Corporation (NASDAQ:MNKD) with a $12 price target, emphasizing, “the expected FDA approval of the diabetes drug Afrezza.” Christopher noted, “The AdCom voted 13 – 1 and 14 – 0 in favor of approving Afrezza for type-1 and type-2 diabetes, respectively. While the FDA is under no obligation to follow these recommendations, we have a high level of conviction for approval.” And even though the FDA has requested a three-month extension, Christopher sees this as a BUYing opportunity, “We are not entirely surprised by the 3 month PDUFA extension, which we view as a buying opportunity ahead of a low-risk approval event.” Christopher is ranked 2636 out of 2982 analysts, with a -7.2% average return over S&P-500 and a 33% success rate of recommendations.
Even before the final date was pushed back, J.P. Morgan analyst Cory Kasimov reiterated his HOLD MannKind Corporation (NASDAQ:MNKD) rating. Cory noted that the FDA had some concerns, but noted that, “the panelists who voted on it were obviously not as worried. They basically acknowledged that it isn’t a perfect drug but stated that it is ‘good enough’ and would be helpful as an additional treatment option, particularly for patients who can’t use insulin.” Cory is ranked 2824 out of 2982 analysts, with a -5.8% over S&P-500 and a 45% success rate of recommendations.
However, Piper Jaffray analyst Joshua Schimmer has some reservations about the drug and recommended SELL MannKind Corporation (NASDAQ:MNKD) before the FDA announced the new July 15th date. Joshua predicted that the FDA would push back the approval date, saying, “the FDA will need added time to negotiate a ‘complex label,’ which may delay the drug beyond the April 15 PDUFA date or force MannKind to provide more information on the drug.” Joshua also argued that, “Afrezza is not a slam dunk to be a commercial success and the drug will not be on the market until 2016.” Joshua also noted, “the possibility of lung cancer as a side ffect may discourage patients from using the drugs and new diabetics may opt for the traditional injectable insulin rather than unproven inhaled insulin.” Joshua is ranked 1 out of 2982 analysts, with a +13.6% average return over S&P-500 and a 74% success rate of recommendations.
The final say by the FDA on Afrezza will not happen until later this summer, but what will you do with your MannKind Corporation (NASDAQ:MNKD) stock now? To continue following these analysts, as well as other analyst recommendations, be sure to download TipRanks, and start making informed financial decisions with advice you can trust.
