UPDATE: MLV & Co. Downgrades MannKind On Fair Valuation

In a report published Tuesday, MLV & Co analyst Graig C. Suvannavejh downgraded the rating on MannKind Corporation MNKD from Buy to Hold, but raised the price target from $10.00 to $11.00. In the report, MLV & Co noted, “Capping a long journey, FDA has now approved Afrezza, MNKD's novel inhaled insulin for diabetes. Given the very positive 4/1 AdCom vote in favor of Afrezza, the approval itself doesn't come as a surprise, but the timing does (the PDUFA was 7/15). As a result, we now raise our PT to $11 (on a lowered DCF discount rate on reduced risk), but given current valuation, we now also lower our rating to Hold on what we see as a fully valued stock. "Our next immediate focus is the commercial partnership for Afrezza. Here, 1) which pharma MNKD secures as a partner and 2) partnership deal terms will be major factors in determining how the market (and stock) reacts. We expect partnership news in the next 2-3 months (but are hopeful it could come sooner), and note that we'll likely use that event as an opp'y to re-evaluate our views on the stock and Afrezza's prospects.” MannKind Corporation closed on Monday at $10.96.