Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company MannKind
With that in mind, let's take a closer look at MannKind's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Valencia, Calif. (1991)|
|Market Cap||$1.23 billion|
|Management||Founder/CEO Alfred Mann (since 2003)
CFO Matthew Pfeffer
|Return on Capital (Average Past 3 Years)||(54.1%)|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 17% of the 668 members who have rated MannKind believe the stock will underperform the S&P 500 going forward. These bears include JuanPeter and All-Star zzlangerhans, who is ranked in the top 1% of our community.
This month, JuanPeter didn't exactly express high hopes for MannKind's inhaled insulin product, Afrezza: "[A] 4 week delay won't prevent Afrezza from being rejected by the FDA. ... [P]rior FDA decisions on inhalable drugs citing concerns on long term safety won't make this one an easy play. ... Make your bets!"
At negative 54.1%, MannKind's three-year average return on capital is substantially lower than rival Sanofi's 7.9%, Lilly's 21.2%, and Novo's 26.3%. Of course, for MannKind, it's all about Afrezza going forward, but with both Pfizer
CAPS All-Star zzlangerhans elaborates:
At this price level, I see more downside in the short-term regardless of the PDUFA outcome. I think another technical CRL is the most likely verdict, but I'm far from sure that's what will happen.
The main long-term issue, as always, is whether inhaled insulin represents a genuine improvement over injected insulin. The FDA has certainly questioned this in the past, and I've yet to meet a diabetic who didn't take his insulin because of fear of needles.
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