What’s up with MannKind

What’s up with MannKind

Yes, the rumor mill is in full swing as shares of MannKind (NASDAQ: MNKD) have been surging largely based on rumors that the company will be acquired. Now this could turn out to be true especially given the desperate situation the company is in. And to be fair even without Afrezza the company’s drug delivery technology is not worthless and does have other possible applications. Still we wonder what the hurry is.

As everyone knows the company is facing some serious financial issues which would only add to the cost of an acquisition. And let’s be honest it’s not unusual for a company in MannKind’s situation to explore every possible option including a sale. This as they say is standard operating procedure. We ask again why the hurry.

As we have noted previously all a potential suitor has to do is have some patience, take a step back and see how things progress. IF the company can find some REAL strategic partners companies that will actually provide some much needed cash NOW and not later the worst case is a suitor pays a little more. However, should the company fail to develop REAL partnerships nor get the cash it desperately needs bankruptcy becomes a very real possibility making the cost of acquisition much cheaper. Additionally, although we are not experts in corporate bankruptcies we suspect this would also help any suitor deal with the financial issues facing MannKind. So we ask again what’s the rush here.

The company announced they would be conducting a conference call on February 3rd, a call which is supposed to discuss “company developments”. Sure it’s possible that a sale could be announced it’s also possible that they will simply provide more clarity as to how things are proceeding. Given that February 3rd is just a week away we’ll ask one last time why the rush to judgement.

Listen we know that for MannKind shareholders a week can be a lifetime. Anyone who has watched how this stock trades knows that. Yet what we find so interesting here is that no one is considering that perhaps the company is just trying to buy some time, that they themselves created this rumor. Now we have absolutely no proof of this and are merely speculating. Still we were not born yesterday either.

The reality is time will tell whether this is real or just another mirage.