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Why MannKind Corporation Shares Cratered Today

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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 MannKind Corporation (NASDAQ: MNKD  ) are down 15% today as investors react to widespread concerns that the company's inhaled-insulin drug Afrezza will be rejected by the FDA.

So what: It took investors a few days to digest briefing materials (248-page PDF opens in new window) released by the FDA's advisory panel last Friday, and MannKind's shares experienced some weakness that day as well. However, the Summer Street research firm now believes that the FDA will not recommend approval for Afrezza after working its way through the briefing, noting that it contained "several surprises." TheStreet's biotech expert Adam Feuerstein isn't ruling out approval completely, but he only sees a 40% chance of approval for treating type 1 diabetes, with approval for type 2 diabetics up in the air.

Now what: MannKind doesn't exactly have anything on the market to fall back on -- the company's sold effectively nothing for half a decade, and it's been pushing Afrezza toward approval for that entire time. If it can't get this drug to market, there's no reason why investors should stick around, since Afrezza was the company's only feasible meal ticket.

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Read/Post Comments (7) | Recommend This Article (5)

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 March 31, 2014, at 1:38 PM, yahoo123 wrote:

    Does Summer Street research firm belong to FDA ?

    Or they have inside news ?

  • Report this Comment On March 31, 2014, at 1:42 PM, yahoo123 wrote:

    Adam Feuerstein is nothing but a jock, who have no skill in Biotech.

  • Report this Comment On March 31, 2014, at 3:28 PM, larryw101 wrote:

    So now the the fools at Motley rely on other authors from other competitors to base their opinion.

    Alex Planes = Fool of the year.

    Motley Fool has turned into garbage journalism and I can't think of a better example than this author's article.

  • Report this Comment On March 31, 2014, at 3:37 PM, fullshred wrote:

    blah blah's all speculation but the AdComm was positive. Seems the Street is desperate to have the pps tank before tomorrow's outcome with all the FUD. What's the worry? lol Good luck!

  • Report this Comment On March 31, 2014, at 10:56 PM, Falcon208 wrote:

    I'm quite surprised that no one at MF has bothered to discuss in full the significant benefits this drug could have for diabetics -- and the potential for the technosphere/inhaler delivery system. Brian Orelli did some quite limited reporting, but this article is cursory at best. Summer Street and Adam Feuerstein are on a par with Citron and Seeking Alpha -- hard to believe you're referencing them at all. This article -- and the general poor coverage on this controversial stock -- is far below the level of reporting I've come to expect from MF.

  • Report this Comment On April 01, 2014, at 7:37 PM, Ballchinnian wrote:

    Adam Feuerstein should not be described as an "expert". He publishes articles so full of blatant factual errors that he can't truly be referred to as "right" or "wrong", but merely completely uninformed or intentionally dishonest.

  • Report this Comment On April 01, 2014, at 7:38 PM, Ballchinnian wrote:

    BTW, in case you didn't notice, MNKD is up 100% on today's news.

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Alex Planes

Alex Planes specializes in the deep analysis of tech, energy, and retail companies, with a particular focus on the ways new or proposed technologies can (and will) shape the future. He is also a dedicated student of financial and business history, often drawing on major events from the past to help readers better understand what's happening today and what might happen tomorrow.

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9/1/2015 3:59 PM
MNKD $3.71 Down -0.08 -2.11%
MannKind Corp CAPS Rating: **