Shares of MannKind Corporation (NASDAQ: MNKD) have declined more than 28 percent, year to date.
Piper Jaffray’s Joshua E. Schimmer has downgraded the rating on MannKind from Neutral to Underweight, while reducing the price target to $1.50.
Schimmer believes the company has “vastly over-estimated” the commercial potential of Afrezza for diabetes. The drug is being viewed as a very niche product.
According to the Piper Jaffray report, the launch of the company’s new diabetes drug, Afrezza, has been “lacklustre to say the least.” Checks with specialists suggest that while there is an increasing use of Afrezza in their practice, although not a “dramatic” increase.
Schimmer pointed out that physicians were viewing Afrezza as a “niche” product that is mainly beneficial only to a small group of “needlephobic” patients. “The hassles of PFT monitoring and repeated cartridge administration were seen as drawbacks unlikely to abate any time soon” the report said.
The patient blogs, on the other hand, describe “good” glucose control but view the drug as a device that is “very challenging” to use and takes a lot of time to learn.
“While the unmet need for glucose control is high, we are skeptical that MNKD will find attractive commercial opportunities where the TI profile can command premium pricing and be differentiated versus alternative easy-to-use injectibles,” Schimmer added.
In addition, MannKind has been struggling with its convertible notes, high expenses and its obligation to Sanofi SA (ADR) (NYSE: SNY) under the 35/65 split for Afrezza. Schimmer also expressed concern regarding Afrezza weak sales dragging the stock down further.
The EPS estimates for 2015 and 2016 have been reduced from $0.28 to $0.25 and from $0.19 to $0.17, respectively.
There will be much egg on many faces in the near to mid future, and hopefully the investing community forever remembers the deceivers.
piper jaffrey does not have a reputation, period, end of story. Just like thestreet, motley fool, and other "analyst" Hedge Fund covers, they fork over the payola for media placements
It's been going on forever, but these days we are more aware. Some of us. Looking to possibly get into some Jan 16 calls. More hit pieces, the better.
Does anyone truly believe that Piper made their decision to drop their estimation of the future success of Afrezza based on calling five endocrinology offices? Does this mean that if they had happened to have called five offices on Sam Finta's list of prescribing doctors that they would have raised their expectations?
The Market Makers opened the price per share today at 3.73. That means that those who were likely shorting the stock were likely working in coordination with the MM. At no point during the entire day did the stock trade below that opening price until the last several minutes when it seems like additional shorts piled on just to make it seem like the stock was being sold off. It was not selling off.
This manipulation will not drive off investors. In fact, the top 20 institutional investors and top 20 funds invested in MNKD are adding shares, not reducing positions.
This is just another example of the trading cycle happening now. Traders are in control of price action and they will continue to manipulate the price per share for quite sometime.
Does anyone truly believe that Piper made their decision to drop their estimation of the future success of Afrezza based on calling five endocrinology offices? Does this mean that if they had happened to have called five offices on Sam Finta's list of prescribing doctors that they would have raised their expectations?
The Market Makers opened the price per share today at 3.73. That means that those who were likely shorting the stock were likely working in coordination with the MM. At no point during the entire day did the stock trade below that opening price until the last several minutes when it seems like additional shorts piled on just to make it seem like the stock was being sold off. It was not selling off.
This manipulation will not drive off investors. In fact, the top 20 institutional investors and top 20 funds invested in MNKD are adding shares, not reducing positions.
This is just another example of the trading cycle happening now. Traders are in control of price action and they will continue to manipulate the price per share for quite sometime.
the analyst writes after speaking to five primary care and endocrinology specialists with high volumes of diabetes patients.
To your point, Piper Jaffery in founded and head quarters in Minneapolis MN. Perhaps piper jaffery called 5 offices in Minneapolis. No physicians in Minnesota on Sam List. (No physicians listed in Wisconsin, North Dakota, South Dakota, Iowa. This part of the country seems to be a dead zone.)
With the exception of Mnholdem and Dr. Eric Nussbaum truly a backward people.
#Nasty Women. It's just such crazy business. They lie, we know they are lying, they know we know they are lying, and tomorrow is another day - of lies. person, woman, man, camera, TV. Twice impeached. Indicted 4 times.
The good thing about Schimmer's downgrade it puts a lot of pressure on both MannKind and Sanofi to shore up the finances or risk the chance of a hostile bid to buy the company by another Big Pharma. While the chances might be slim that it happens there might be somebody out there who will take a run at the company for a cheap price $8 or $10 per share and force MannKind and Sanofi to make a deal.
There are activist investors who play this game over and over again. They know now to get the value out of a languishing stock. In the case of MannKInd it would be easy for them to acquire enough shares to put the company into play. Don't think for a minute that Schimmer's attack or any of they others are not part of a game to raid the company for cheap.
Yes sales are not rolling in yet but its very early in the process and they are just hitting the next round of payer negotiations to get better tier status. But for Sanofi you just don't go in and cut your price to get the right tier position or you give up your profits. So getting to a tier 2 status takes months and perhaps a year or two. The product works and will eventually take off. Until then its going to be tough sailing unless Sanofi Buys In or Buys out MannKind or an Activist investor plays his hand of cards. Its the ULTIMATE POKER GAME. End.
my price of $8 to $10 was just to get the bidding started. There are a lot of cash rich big pharma players and Sanofi would not let the big fish get away from them. I do view an eventual bidding war or an activist to stir up the pot if the pops continues to languish in this range.
The good thing about Schimmer's downgrade it puts a lot of pressure on both MannKind and Sanofi to shore up the finances or risk the chance of a hostile bid to buy the company by another Big Pharma. While the chances might be slim that it happens there might be somebody out there who will take a run at the company for a cheap price $8 or $10 per share and force MannKind and Sanofi to make a deal.
There are activist investors who play this game over and over again. They know now to get the value out of a languishing stock. In the case of MannKInd it would be easy for them to acquire enough shares to put the company into play. Don't think for a minute that Schimmer's attack or any of they others are not part of a game to raid the company for cheap.
Yes sales are not rolling in yet but its very early in the process and they are just hitting the next round of payer negotiations to get better tier status. But for Sanofi you just don't go in and cut your price to get the right tier position or you give up your profits. So getting to a tier 2 status takes months and perhaps a year or two. The product works and will eventually take off. Until then its going to be tough sailing unless Sanofi Buys In or Buys out MannKind or an Activist investor plays his hand of cards. Its the ULTIMATE POKER GAME. End.
my price of $8 to $10 was just to get the bidding started. There are a lot of cash rich big pharma players and Sanofi would not let the big fish get away from them. I do view an eventual bidding war or an activist to stir up the pot if the pops continues to languish in this range.
And how does another pharma do this when Al Mann and mnkd insiders own 40% of the outstanding shares and have total control of the BOD?
Last Edit: Sept 9, 2015 20:54:00 GMT -5 by mannmade
"I have not yet begun to fight..." and/or "Nuts!" And Lastly... "Remember the Science!" ("RTS")
I'm hesitant to express what crossed my mind re: the timing of this downgrade as most ( myself included ) seem to think it's too soon for Afrezza airtime . But didn't Sanofi advertise Toujeo in Time shortly before Afrezza ? ( that's how I remember it ) . And just recently ( I'm sure it was Harry ,)) shared the first Toujeo commercial ? It may be a long shot but perhaps we'll get a nice surprise & see an Afrezza commercial sooner than we think ?
My thought is if the big dogs know it's coming , the timing of this down grade makes perfect sense . Shorts can drive it down & cover before a media blitz . Just the detective in me , trying to come up with a theory besides low script #'s thus far . But then why not wait until Friday for the downgrade ?
I've learned to expect to be disappointed with this investment , but perhaps the tide will turn sooner than we think ?
The good thing about Schimmer's downgrade it puts a lot of pressure on both MannKind and Sanofi to shore up the finances or risk the chance of a hostile bid to buy the company by another Big Pharma. While the chances might be slim that it happens there might be somebody out there who will take a run at the company for a cheap price $8 or $10 per share and force MannKind and Sanofi to make a deal.
There are activist investors who play this game over and over again. They know now to get the value out of a languishing stock. In the case of MannKInd it would be easy for them to acquire enough shares to put the company into play. Don't think for a minute that Schimmer's attack or any of they others are not part of a game to raid the company for cheap.
Yes sales are not rolling in yet but its very early in the process and they are just hitting the next round of payer negotiations to get better tier status. But for Sanofi you just don't go in and cut your price to get the right tier position or you give up your profits. So getting to a tier 2 status takes months and perhaps a year or two. The product works and will eventually take off. Until then its going to be tough sailing unless Sanofi Buys In or Buys out MannKind or an Activist investor plays his hand of cards. Its the ULTIMATE POKER GAME. End.
my price of $8 to $10 was just to get the bidding started. There are a lot of cash rich big pharma players and Sanofi would not let the big fish get away from them. I do view an eventual bidding war or an activist to stir up the pot if the pops continues to languish in this range.
And how does another pharma do this when Al Mann and mnkd insiders own 40% of the outstanding shares and have total control of the BOD?s
Somebody will find a way to accumulate 10% and then announce a tender offer for the company. They will put the shares in play and MannKind would have to step up and address the issue or have shareholders tendering shares to the buyer. It will be like throwing chum into the ocean aa d attracting sharks.
And how does another pharma do this when Al Mann and mnkd insiders own 40% of the outstanding shares and have total control of the BOD?s
Somebody will find a way to accumulate 10% and then announce a tender offer for the company. They will put the shares in play and MannKind would have to step up and address the issue or have shareholders tendering shares to the buyer. It will be like throwing chum into the ocean aa d attracting sharks.
A tender offer is made to acquire a controlling percentage of the company which is not possible with MNKD because Al controls so many shares. A tender offer would make no sense in the context if MNKD.
It seems that it wasn't that long ago that Goldman-Sucks put out a ridiculous analysis with a Sell rating and a price target of $2. Where did that get them? Now Piper Jaffray does the same thing. But the problem is that shareholders are holding, in spite of a massive FUD campaign. It's gotta be frustrating for short interests who may even be trying to force bankruptcy or a shareholder lawsuit. They know the window is closing and they're running out of time. Perhaps they already have.
I'm hesitant to express what crossed my mind re: the timing of this downgrade as most ( myself included ) seem to think it's too soon for Afrezza airtime . But didn't Sanofi advertise Toujeo in Time shortly before Afrezza ? ( that's how I remember it ) . And just recently ( I'm sure it was Harry ,)) shared the first Toujeo commercial ? It may be a long shot but perhaps we'll get a nice surprise & see an Afrezza commercial sooner than we think ?
My thought is if the big dogs know it's coming , the timing of this down grade makes perfect sense . Shorts can drive it down & cover before a media blitz . Just the detective in me , trying to come up with a theory besides low script #'s thus far . But then why not wait until Friday for the downgrade ?
I've learned to expect to be disappointed with this investment , but perhaps the tide will turn sooner than we think ?
I'm hesitant to express what crossed my mind re: the timing of this downgrade as most ( myself included ) seem to think it's too soon for Afrezza airtime . But didn't Sanofi advertise Toujeo in Time shortly before Afrezza ? ( that's how I remember it ) . And just recently ( I'm sure it was Harry ,)) shared the first Toujeo commercial ? It may be a long shot but perhaps we'll get a nice surprise & see an Afrezza commercial sooner than we think ?
My thought is if the big dogs know it's coming , the timing of this down grade makes perfect sense . Shorts can drive it down & cover before a media blitz . Just the detective in me , trying to come up with a theory besides low script #'s thus far . But then why not wait until Friday for the downgrade ?
I've learned to expect to be disappointed with this investment , but perhaps the tide will turn sooner than we think ?
Edit : I originally posted this in another thread , but deleted bc it's more on topic here . This is why I read more than I write ,)
Yes! The big dogs know it's coming! I think we are about 6 weeks behind Toujeo. (With print and TV.)
LeAnne look at the similarity of the Toujeo tv ad to the Afrezza video clip with the two ladies sitting down having lunch Different ladies but similar themes. I am sure HAVAS wants to have some continuity in their theme.
