2 Healthcare Stocks That Could Double Your Money
May 18, 2019 7:37:58 GMT -5
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Post by yash on May 18, 2019 7:37:58 GMT -5
2 Healthcare Stocks That Could Double Your Money
Motley Fool
Cory Renauer, The Motley Fool
Motley FoolMay 18, 2019
Robotic surgery underdog TransEnterix (NYSEMKT: TRXC) and drug delivery specialist MannKind (NASDAQ: MNKD) are turning heads at BTIG, a big investment bank. Both of these healthcare stocks recently received buy ratings with eye-popping price targets that suggest they could more than double your money.
Both companies have disappointed a lot of investors over the past several years. Here's what you need to know about their chances to turn things around and deliver juicy returns in the foreseeable future.
MannKind: Whistling through the graveyard
Less than five years ago, this champion of rapid-acting inhaled insulin was a $3.9 billion company. Now, MannKind is worth a bit less than TransEnterix with a $248 million market cap.
Earlier this year, Mankind began a direct purchase program for Afrezza, a tiny whistle-shaped device that delivers an inhalable form of insulin powder that's generally popular among the small number of people that have used it. Plenty of patients that tried Afrezza samples probably would have kept using it if they could get their insurer to cover it.
The ability to pay a reasonable price out of pocket will be good news to around 65,000 Americans that pay cash for their insulin each month, and it looks like they've been buying direct from Mannkind already. First-quarter sales of Afrezza came in 68% higher than a year earlier at $5.1 million. As a result MannKind finished March with just $59.8 million in cash after losing $14.9 million during the first three months of 2019.
MannKind has also been receiving significant revenue from United Therapeutics since last September for rights to a dry powder formulation of treprostinil, the company's blockbuster treatment for pulmonary arterial hypertension. United Therapeutics forked over $45 million up front and Mannkind's still eligible for another $37.5 million in additional milestone payments, plus a low double-digit royalty percentage of net sales.
Robert Hazlett at BTIG gave Mannkind stock a $3 price target, which is around 127% higher than where it sits at the moment. Hazlett's encouraged by the rapidly growing use of continuous glucose monitoring devices and thinks Afrezza's rapid onset advantage over injectable rapid-acting insulin brands could make it the go-to option for careful blood sugar control.
finance.yahoo.com/news/2-healthcare-stocks-could-double-120300518.html
Motley Fool
Cory Renauer, The Motley Fool
Motley FoolMay 18, 2019
Robotic surgery underdog TransEnterix (NYSEMKT: TRXC) and drug delivery specialist MannKind (NASDAQ: MNKD) are turning heads at BTIG, a big investment bank. Both of these healthcare stocks recently received buy ratings with eye-popping price targets that suggest they could more than double your money.
Both companies have disappointed a lot of investors over the past several years. Here's what you need to know about their chances to turn things around and deliver juicy returns in the foreseeable future.
MannKind: Whistling through the graveyard
Less than five years ago, this champion of rapid-acting inhaled insulin was a $3.9 billion company. Now, MannKind is worth a bit less than TransEnterix with a $248 million market cap.
Earlier this year, Mankind began a direct purchase program for Afrezza, a tiny whistle-shaped device that delivers an inhalable form of insulin powder that's generally popular among the small number of people that have used it. Plenty of patients that tried Afrezza samples probably would have kept using it if they could get their insurer to cover it.
The ability to pay a reasonable price out of pocket will be good news to around 65,000 Americans that pay cash for their insulin each month, and it looks like they've been buying direct from Mannkind already. First-quarter sales of Afrezza came in 68% higher than a year earlier at $5.1 million. As a result MannKind finished March with just $59.8 million in cash after losing $14.9 million during the first three months of 2019.
MannKind has also been receiving significant revenue from United Therapeutics since last September for rights to a dry powder formulation of treprostinil, the company's blockbuster treatment for pulmonary arterial hypertension. United Therapeutics forked over $45 million up front and Mannkind's still eligible for another $37.5 million in additional milestone payments, plus a low double-digit royalty percentage of net sales.
Robert Hazlett at BTIG gave Mannkind stock a $3 price target, which is around 127% higher than where it sits at the moment. Hazlett's encouraged by the rapidly growing use of continuous glucose monitoring devices and thinks Afrezza's rapid onset advantage over injectable rapid-acting insulin brands could make it the go-to option for careful blood sugar control.
finance.yahoo.com/news/2-healthcare-stocks-could-double-120300518.html