Down 35%, Mannkind No Bargain

The following video is part of our "Motley Fool Conversations" series in which health-care editor/analyst David Williamson and technology editor/analyst Andrew Tonner discuss topics across the investing world.

In today's edition, David discusses the recent capital raise at Mannkind, which hopes to get its inhaled-insulin therapy, Afrezza, on the market. Shares plunged 35% after the news, which seemed to catch the market off guard, but management stated in their Q3 conference call that they would only be able to fund operations through Q1 2012. David argues that even after this overreaction, shares are not a bargain. Even if Afrezza is approved, there may not be as large a market as investors think. Big Pharma has struggled to sell or scrapped inhaled-insulin products, so Mannkind looks to have an uphill climb even if it gets past the FDA.

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Andrew Tonner has no positions in the stocks mentioned above. David Williamson owns shares of Pfizer. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend MannKind and Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 24, 2012, at 3:57 AM, ScottMatusow wrote:

    Please get updated information before posting that MNKD will run out of money. They just released their 4 quarter and year 10Q 2 days ago. With all due respect, and I am a writer on SA, we need to all do a better job on making sure our information is up to date before releasing an article, thanks!

  • Report this Comment On February 25, 2012, at 12:40 PM, optionfun wrote:

    "Big Pharma has struggled to sell or scrapped inhaled-insulin products, so Mannkind looks to have an uphill climb even if it gets past the FDA."

    This is the type of ignorance that amazes me. I don't mean that in a hostile way, it is true ignorance. Ignorance of the apparent differences between Afrezza and all the other "Big Pharma" attempts to bring a BETTER product to market.

    Understand this please. Afrezza is a better drug than any fast acting insulin in the world. It more closely mimics the function of a healthy body's insulin response at mealtime than any drug in the world.

    IT JUST SO HAPPENS THAT THE ONLY WAY THIS CAN BE ACHIEVED IS THROUGH INHALATION. THIS IS NOT A PRODUCT FOR NEEDLEPHOBES. IT'S BETTER, BETTER, BETTER!!!!!!

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