Back to the Blog- MNKD Update

After a some time off travelling, I am back and blogging. For now, I am looking to see how far MNKD will drop. Some more information about the stock:

Quite a few folks are shorting this, so any positive news will cause a squeeze.

The issues helping the drop:
1. MNKD doesn't have a marketing partner lined up this year as expected and likely won't until after FDA approves the drug. FDA decision is due in January 2010.
2. Pfizer withdrew an oral insulin from market in 2007 as a result of the size of the inhaler, higher insurance copays and the need for periodic lung function tests hampered sales. Consequently, two other big pharmas cancelled their inhaled insulin programs in 2008. Given the safety issue of lung impact, some analysts predict no big pharma will partner with MannKind and that there won't be much sales penetration.
3. The NYTimes wrote an article in which it cited a competitor's criticism of Afresa, which in my mind is a questionable source to cite in an article. It's like quoting the Wal-Mart CEO disparaging the Target brand.
4. Some analysts are concerned the FDA will require another four-month study comparing its old inhaler, called MedTone, with its new, smaller inhaler called Dreamboat. The Dreamboat is currently in Phase 1 Clinical trials.

On the plus side:
1. They contracted to buy Pfizer's FDA approved insulin plant in Germany in March, 2009.
2. The owner of MannKind, Alfred Mann, has flown in the face of conventional thinking before and ended up very wealthy as a result.
3. They have enough cash to get through 1Q, 2011.
4. After four years of longitudinal studies, MannKind reported there was normal lung function in patients.