MannKind Corporation (MNKD) Shares Down Following Rival’s IPO Plans


MannKind Corporation (NASDAQ:MNKD) shares continued their decline on Monday following the news that a potential rival has filed for an IPO, says a report from WallStreetPR. The news of the IPO along with the continued pullback from the news of the delay in approval of Afrezza dragged the shares down by 1.87% to $6.29.

Rival developing a similar product

Dance Biopharm, a rival to MannKind Corporation (NASDAQ:MNKD), reportedly filed IPO documents with the Securities Exchange Commission (SEC) last week. Dance Biopharm is expected to collect $75 million through the offering. Similar to MannKind’s product, rival Dance has also developed an inhaled insulin product for the treatment of diabetes.

Dance 501 has been developed to supply liquid insulin through its handheld, small electronic inhalation device. In its IPO filings with the SEC, Dance mentioned that it plans to start the Phase III clinical trial of the product in early 2015, and would reach out to European, Chinese and U.S authorities for regulatory approval of its product.

MannKind presents a good buying opportunity

Presently, MannKind Corporation (NASDAQ:MNKD)’s Afrezza, which is an inhaled diabetes device, is under review by the FDA. Earlier this month, shares of the drug maker surged following the approval from the FDA advisory panel over the use of Afrezza for Type 2 diabetes. The panel also recommended the device for Type 1 diabetes. However, after the news that the FDA has postponed the decision until mid-July, the shares have been moving downwards.

A report from Brinson Patrick on April 8, 2014 by analyst Christopher S James views the recent dip in MannKind Corporation (NASDAQ:MNKD)’s shares as a good buying opportunity believing “a high level of conviction for approval.”  Afrezza has already won the approval from AdCom for type-1 and type-2 diabetes, which raises the chances of FDA approval.

According to James, Afrezza could start selling from the first quarter of 2015, and he expects 2025 sales to be around $3.6 billion, “driven by use in earlier-stage T2D.” The analyst expects the initial demand for Afrezza to be high “considering statements made by the panel and open public hearing about its efficacy, safety, pharmacokinetics, and attractive size.”

Brinson Patrick has a Market Outperform rating on MannKind Corporation (NASDAQ:MNKD) with a price target of $12. At 11 a.m. EDT, MannKind Corporation (NASDAQ:MNKD) shares were down 3.18% to $6.09.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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