The MannKind Roller Coaster Ride Continues
Well once again shares of MannKind (NASDAQ:MNKD) have fallen below the $4 level. With the market still open shares could close above that level but the trend isn’t good. Over the last 30 days shares have fallen over 24%, taking a somewhat longer view the picture isn’t much better as shares have fallen over 40% over the last 6 months. Take a look at the 1 year, 2 year and 5 year charts and it’s more of the same. The most compelling question that comes to mind given this pesky set of facts is just when this stock will turn itself around.
We ask this not because we believe in MannKind’s future, we don’t. We ask this because so many of the MannKind zealots continue to double down on the premise that shares are vastly undervalued. That sales of Afrezza which have been underwhelming and show no signs of improvement will all of sudden turn around. That the recently launched direct to consumer advertising campaign will increase awareness and more prescriptions will magically materialize.
Listen we really don’t like dumping on MannKind nor do we take any great pleasure in watching shares slide. Yet it is fun to read the things MannKind supporters write, how they explain in spite of those pesky facts we have pointed out, that MannKind shares are a bargain. The latest muse comes from Kanak Kanti De, and no we are not making this up, who according his profile is “retired medical practitioner, cancer survivor, healthcare sector investor, over 30 years experience in the sector both in India and the United States. During my days in the US, I learned investing in the US stock markets and have never lost that interest. There is something exciting about discovering a small company, investing in its stock, and watching its price go up.”
Why Kanak is watching MannKind, which rarely goes up but almost always goes down, is another question but we digress.
Kanak writes; “Short interest in MNKD remains quite high. The negative sentiment is of course due to the fact that Afrezza sales have so far underwhelmed. But I doubt that this situation will continue for long. The weak Afrezza sales have been due to a number of factors, including lack of awareness among doctors. However, Sanofi (NYSE:SNY) and MannKind are taking steps to address many of these issues. I believe that the new Direct-to-Consumer (DTC) marketing campaign will make a difference. So will the expansion of the sales team.
I was just talking to a subscriber of my premium service this morning, and he says he has interviewed more than 200 people about whether they prefer inhaled insulin over a needle. He says more than 99% of them voted for inhaled. To that, I would add my own vote, although, to be frank, if I was given a choice between an insulin needle and say, a surgeon’s needle, I wouldn’t mind the insulin needle. It doesn’t have much of a bite, although it can be awkward in some settings. The critical difference will be safety, and Afrezza’s sales team must work at showing how much safer it is from Pfizer’s much-touted but failed Exubera.”
First we find it difficult to believe that anyone is actually paying for Kanak’s advice, although to be fair the majority of MannKind supporters say the same thing about Diabetic Investor. The main difference just happens to be we know what we’re talking about and have a well-documented track record. No we are not bragging just stating another of those pesky facts. But again we digress.
Like every other MannKind supporter Kanak believes the DTC campaign will be nothing less than magical. Like every other MannKind supporter he states the obvious that given the choice between injecting insulin or inhaling patients would prefer inhaling. This isn’t news. Yet the real belly laugher is his assertion that Afrezza is safer than Exubera, as if Exubera’s safety profile was the reason it failed.
Now we’re sure Kanak is very nice guy and we’ll take him at his word that people actual pay to read what we writes. Although this does confirm a well held adage that there is no cure for stupid, but once again we digress.
Yet it’s obvious he also shares another trait with the many MannKind zealots in that when it comes to the business of diabetes he don’t know Jack. Heck he doesn’t even know Jill.
There are times quite honestly that we hope we are wrong about Afrezza and that Sanofi does not terminate their partnership with MannKind. Next to Donald Trump running for the Republican Presidential nomination reading the thoughts of MannKind supporters is pure entertainment. Both Trump and MannKind supporters appear to live in some sort of fantasy land, a land where those pesky facts just don’t matter. And just as its fun to listen to the Donald shot his mouth off, it’s equally amusing to read the fiction written by MannKind supporters.
So keep up the good work Kanak it’s the dog days of August and we always could use a good laugh.