UPDATE: Bank of America Downgrades MannKind Following Physician Survey

In a report published Friday, Bank of America analyst Steve Byrne downgraded the rating on

from Neutral to Underperform, and lowered the price target from $8.00 to $5.00. In the report, Bank of America noted, “We lowered our rating to Underperform and our PO to $5 (from $8) following our recent 75 physician survey to assess interest levels in Afrezza post phase 3 results. Respondents were notably more cautious about Afrezza compared to our March survey, particularly regarding use in Type 2 diabetes patients on oral therapies. We now model peak share of 2% in the oral market (4% prev.). Our 4% peak share of the basal/prandial insulin market for type 1 patients is unchanged. We model Afrezza attaining 1.6% share of the US diabetes market by 2020, which may still be aggressive and largely depends on the quality of a much-needed partner.” MannKind Corporation closed on Thursday at $6.30.