Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why MannKind Corporation Shares Cratered Today

By Alex Planes - Mar 31, 2014 at 1:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

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 ( 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MannKind Corporation Stock Quote
MannKind Corporation
MNKD

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.