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Rumor Roundup- MannKind Extremely Volatile Monday (MNKD)

Shares of MannKind (NASDAQ: MNKD) are extremely volatile in Monday trading. The stock has already traded 10 million shares as of 12:20 p.m. EDT versus a full day average of 8 million. Mannkind has traded in a 7 percent range and is currently 3 percent lower on the day. The reason seems to be its earnings release on Friday some doubt over its inhaled insulin drug Afrezza.

The company reported a second quarter EPS loss of $(0.16) versus consensus of $(0.14). EPS were up 30 percent from the same quarter last year.

Popular Today: Why Inovio Pharmaceuticals is Down 17 Percent Monday

Afrezza is in phase 3 trials and likely to produce positive results when the company presents highly anticipated data later this month but there is reason for caution.

  1. The drug was already rejected by the FDA twice.
  2. MannKind will need a partner to market the drug but big pharma is not enthusiastic about inhaled insulin. Companies like Pfizer (NYSE: PFE) pulled Exubera, an inhaled insulin, from the market because of lack of consumer demand and Novo Nordisk (NYSEL NVO) and Eli Lilly (NYSEL LLY) discontinued development of their inhaled insulin products.
  3. While the inhaled insulin market is a multi billion dollar space, a ton of money will have to be spent to get doctors to embrace more traditional products.

On the other hand, there seems to be a lot of optimism that the drug will get approved and that it’s a much better product than Pfizer’s Exubera.

Traders have a lot to say about MannKind today. Here’s the roundup.

From Twitter:

 

 

 

From StockTwits

“@Momo1031: $MNKD http://stks.co/qOL8   http://stks.co/qOL9  $JNJ (animas) Trials info / article regarding artificial pancreas & companies involved”

Twitter Chatter Right Now

 

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Disclosure: At the time of this writing, the author had no position in the company mentioned.

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