Piper Jaffray Not Convinced MannKind's Afreeza Will Be Commercial Success

On Wednesday, Piper Jaffray raised the price target for

from $1.50 to $2 and reiterated an Underweight rating following the FDA Advisory Committee recommended the approval of Afrezza. Analyst Joshua Schimmer believes the FDA will need added time to negotiate a “complex label,” which may delay the drug beyond the April 15 PDUFA date or force MannKind to provide more information on the drug. Afrezza is not a slam dunk to be a commercial success and the drug will not be on the market until 2016, Schimmer said. The possibility of lung cancer as a side effect may discourage patients from using the drugs and new diabetics may opt for the traditional injectable insulin rather than unproven inhaled insulin. Other firms have adjusted their price targets for MannKind including:

Shares of MannKind opened at $7.74 on Wednesday after closing at $3.80 on Tuesday. The stock has traded in a range between $8.08 and $6.83.