UPDATE: Bank of America Raises PT on MannKind Corporation Following Physician Survey
In a report published Wednesday, Bank of America analyst Steve Byrne reiterated a Buy rating on MannKind Corporation (NASDAQ: MNKD), and raised the price target from $3.00 to $5.00.
In the report, Byrne noted, “We commissioned a survey of 75 primary care physicians (PCPs) to assess the market opportunity for MNKD's inhaled insulin candidate Afrezza in both type 1 and type 2 diabetes patients. Results indicated meaningful use within a year of approval. We raised our peak share estimate for in the prandial insulin market to 4% (from 2%) and raised our peak share for combo use with oral drugs to 4% (from 3%). This raised our risk adj. peak US Afrezza sales est. to $2.25bn from $1.5bn and our DCF-derived PO to $5 (from $3). We model significantly lower penetration than our survey indicated, as physicians typically overestimate clinical use. We could see further upside pending the significance of the phase 3 results.”
MannKind Corporation closed on Tuesday at $3.33.
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