Breaking Finance News

MannKind Down 8 Percent on Analyst Downgrade But Traders Point Out a Flaw in the Logic (MNKD)

7544735974_1c5eb77371_zShares of MannKind (NASDAQ: MNKD) are down more than 8 percent in afternoon trading Friday after an analyst downgrade. According to Seeking Alpha, Summer Street is suspicious of the results of its recently reported AFFINITY trial.

Specifically, it said, that MannKind “released results on the injectable insulin and Dreamboat arms but withheld the results on the Medtone C-arm” It went on to say:

If the results on the Medtone C-arm aren’t worthy of presenting and inhalers aren’t equivalent, then Summer Street feels there’s not enough safety information to approve Dreamboat.

But a comment to the story points this out:

The claim that MannKind didn’t provide data regarding its MedTone arm is refuted by the following excerpt from the press conference transcript:

“Robert Baughman (Senior Vice President for Clinical Studies): [T]he main safety objective of the study was to establish a bridge between Gen2 and the MedTone pulmonary safety data by demonstrating that the main change in FEV1, the forced expiratory volume in one second, from baseline to week 24 was comparable between the Gen2 and the MedTone treatment groups. We achieved this objective observing that these two values differed at week 24 by an insignificant 0.01 liters and that’s from a baseline value in excess of 3.4 liters. . . .
“Alfred Mann (Chairman of the Board and CEO): This comparison was intended to provide a bridge to the pulmonary safety data from our earlier studies. In study 171, we observed that the pulmonary function results with the two devices were virtually identical, so we regard the bridge as having been established.”

And Stocktwits traders are saying something similar:


 

[stock-tools exchange="NASDAQ" symbol="MNKD" image_height="230" image_width="350"]

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

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