MannKind Corporation (MNKD) At 3-YR High Amid Short Squeeze

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MannKind Corporation (NASDAQ:MNKD) stock continues to soar despite (o because of) rising short interest. The stock gained 3.19% on Monday to $9.19 in early trading session, the highest level since January 28, 2011. Investors are increasingly confident that MannKind’s diabetes candidate Afrezza will get regulatory approval.  According to the Nasdaq, short interest in the stock increased by 3.6% from 65.647 million on April 30 to 68.035 million on May 15.


MannKind Corporation (NASDAQ:MNKD) to present today at Jefferies conference

Based on the average trading volume of 6.058 million shares, it will take 11.23 days to cover the short interest. Currently, 29.2% of MannKind Corporation (NASDAQ:MNKD)’s total outstanding shares are sold short. The Valencia-based pharmaceutical company will present at today’s Jeffries 2014 Global Healthcare Conference in New York, and  at Goldman’s Sachs 35th Annual Global Healthcare Conference on June 12.

Last month, MannKind Corporation (NASDAQ:MNKD) VP Juergen Martens raised some eyebrows when he sold 76,899 shares of the company on May 19, and another 25,000 shares on May 23 in open market transactions. The  has extended the Afrezza review date from April 15 to July 15. However, Brinson Patrick analyst Christopher James sees little risk in approval.

FDA’s AdCom has unanimously approved MannKind Corporation (NASDAQ:MNKD)’s Afrezza for Type-1 and Type-2 diabetes. Regulatory advisers said that the drug will help patients reduce their hypoglycemia sufferings. Christopher James believes that Afrezza could be approved even before July 15. MannKind Corporation (NASDAQ:MNKD) is in advanced talks with the FDA about labeling, REMS and pediatric phase-IV trials.

MannKind Corporation (NASDAQ:MNKD)’s Afrezza could generate massive revenues, if approved

Brinson Patrick has an Outperform rating on MannKind Corporation (NASDAQ:MNKD) with $12 price target. The research firm says that investors are now focusing on labeling, REMS, commercial partnerships and a successful launch of Afrezza, which is expected in early 2015. Christopher James estimates that Afrezza sales could surpass $3.65 billion by 2025, mainly due to early stage Type-2 diabetes.

MannKind Corporation (NASDAQ:MNKD) reported its first quarter results on May 12. The company  incurred a net loss of $52.1 million or 14 cents per share, compared to the consensus estimate of 13 cents in losses.

MannKind Corporation (NASDAQ:MNKD) shares were up 2.36% to $9.11 at 11:29 AM EDT on Monday.

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