Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotech company MannKind (Nasdaq: MNKD ) plummeted more than 20% in intraday trading Friday after the company posted a fourth-quarter loss and said it would lay off 179 workers, or about 40% of its staff.
So what: With its lead inhaled-insulin product Afrezza now having been rejected twice by the Food and Drug Administration, MannKind is naturally seeking to conserve cash as it continues to strive for that ever-elusive approval. Unfortunately, Afrezza's recent struggles also prompted management to terminate its human insulin supply agreement with Merck (NYSE: MRK ) , costing MannKind an additional $22.7 million in termination fees.
Now what: I'd be really cautious about pouncing on today's plunge. While MannKind's distress isn't exactly a big surprise to many Fools, founder and CEO Al Mann's continuous capital backing has always been something die-hard bulls could count on. But with Mann stating on the conference call that he "can't make any commitments at this point," it's tough to understand why individual investors would.
Interested in more info on MannKind? Add it to your watchlist.