MannKind Reports – This is getting old

MannKind Reports – This is getting old

Given the difficulties MannKind (NASDAQ:MNKD) is having getting Afrezza™ , Diabetic Investor is reminded of another diabetic product which also seemed to take forever to get through the FDA. Like Aferzza™, the Navigator was touted as a revolutionary product. Yet there was a time when it seemed like the Navigator would never get here. With each passing conference call Abbott (NYSE:ABT) keep saying they were just moments away from approval. As we all know the Navigator did eventually receive approval, an event which proved to be a hallow victory as it was third product in the category.  For all its promise and hype the Navigator never lived up to expectations.

This seems to be the same path for Afrezza™ with no approval date in sight the company continues to hype the product. And as has become standard for a MannKind conference call the much awaited partnership is also just months away, again.

What really blows Diabetic Investor away is that investors continue to believe the horse manure thrown around by the company. Diabetic Investor understands why MannKind continues to drink the kool aid. What we can’t understand is why investors continue to drink it as well. Even if the product was approved tomorrow and this much talked about partnership actually materialized Afrezza™ faces a series of hurdles.

About the only thing we can think of is that MannKind isn’t owned by investors but traders. Given that shares of MannKind fluctuate up and down this is actually a great stock to trade. But even the best roller coaster ride eventually comes to an end and it will be no different with MannKind. The stark reality here is Afrezza™ if it ever gets here will be nothing more than a niche product and will do nothing but disappoint those investors who are foolish enough to believe the unrealistic sales estimates provided by the company. 

Like Navigator, even when Afrezza™ gets here it will be a hallow victory. Also like Navigator it will end up being a product that does nothing but disappoint. But just as there were people who felt Navigator would overcome its many problems, there will be people who believe Afrezza(tm will overcome many of its problems. In investing we call this the greater fool theory and when it comes to MannKind only a fool would believe this over-hyped fantasy.