Motley Fool Spreads More
Nov 11, 2015 18:19:53 GMT -5
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Post by suebeeee1 on Nov 11, 2015 18:19:53 GMT -5
In the following article MF would have us believe that the dramatic 23% fall in share price today was due to a very bad CC that called into question the Sanifi continued partnership. No mention of false rumors or lies. That shows us clearly how invested in truth they are!
Posted here so you don't need to click:
Here's Why MannKind Corporation's Stock Is Crashing Today
MannKind's shares continue to spiral downward on the growing fear that Sanofi is about to hit the eject button on Afrezza's marketing agreement.
George Budwell (TMFGBudwell) Nov 11, 2015 at 1:13PM
What: Shares of MannKind Corp. (NASDAQ:MNKD), the maker of the inhaled insulin product Afrezza, continued to fall today, dropping by as much as 23% on exceptionally high volume. The drugmaker's stock has been in free fall ever since its marketing partner Sanofi (NYSE:SNY) reported that Afrezza's sales failed to gain much traction in the third quarter. Specifically, Sanofi had Afrezza's net sales for the three month period coming in at $2.2. million, although MannKind did book $4.1 million in product shipments for the quarter.
Because of the unfavorable combination of Afrezza's painfully slow commercial uptake and MannKind's problematic balance sheet, the company's stock has now declined a whopping 63% so far this year, according to data from S&P Capital IQ.
MNKD Chart
So what: The big question swirling around MannKind right now is whether or not Sanofi will decide to terminate its marketing agreement for Afrezza early next year. As one would expect, a couple of the analysts covering this stock tried to get an answer to this burning question on the company's recent third quarter earnings call. However, management didn't reveal much beyond stating that their impression is that Sanofi plans on continuing the partnership for the foreseeable future.
Longview
Now what: Based on how MannKind's shares have been plummeting this month, the market appears to be bracing for the worst case scenario, and perhaps for good reason. The fact is that MannKind may not have the resources to take on Afrezza's commercialization by itself if Sanofi bolts -- at least not on the scale required to turn Afrezza into a blockbuster product.
After all, MannKind exited the third quarter with a mere $32.9 million in cash and cash equivalents. So, even with some additional funds available through its loan agreement with the Mann Group and sales of its common stock, MannKind would probably be hard pressed to execute such a monumental undertaking on its own. As such, investors may want to avoid trying to catch this falling knife for the time being.
Posted here so you don't need to click:
Here's Why MannKind Corporation's Stock Is Crashing Today
MannKind's shares continue to spiral downward on the growing fear that Sanofi is about to hit the eject button on Afrezza's marketing agreement.
George Budwell (TMFGBudwell) Nov 11, 2015 at 1:13PM
What: Shares of MannKind Corp. (NASDAQ:MNKD), the maker of the inhaled insulin product Afrezza, continued to fall today, dropping by as much as 23% on exceptionally high volume. The drugmaker's stock has been in free fall ever since its marketing partner Sanofi (NYSE:SNY) reported that Afrezza's sales failed to gain much traction in the third quarter. Specifically, Sanofi had Afrezza's net sales for the three month period coming in at $2.2. million, although MannKind did book $4.1 million in product shipments for the quarter.
Because of the unfavorable combination of Afrezza's painfully slow commercial uptake and MannKind's problematic balance sheet, the company's stock has now declined a whopping 63% so far this year, according to data from S&P Capital IQ.
MNKD Chart
So what: The big question swirling around MannKind right now is whether or not Sanofi will decide to terminate its marketing agreement for Afrezza early next year. As one would expect, a couple of the analysts covering this stock tried to get an answer to this burning question on the company's recent third quarter earnings call. However, management didn't reveal much beyond stating that their impression is that Sanofi plans on continuing the partnership for the foreseeable future.
Longview
Now what: Based on how MannKind's shares have been plummeting this month, the market appears to be bracing for the worst case scenario, and perhaps for good reason. The fact is that MannKind may not have the resources to take on Afrezza's commercialization by itself if Sanofi bolts -- at least not on the scale required to turn Afrezza into a blockbuster product.
After all, MannKind exited the third quarter with a mere $32.9 million in cash and cash equivalents. So, even with some additional funds available through its loan agreement with the Mann Group and sales of its common stock, MannKind would probably be hard pressed to execute such a monumental undertaking on its own. As such, investors may want to avoid trying to catch this falling knife for the time being.
