MannKind's Short Interest Has 'Grown High,' Analyst Says

In a report published Monday, Goldman Sachs analyst Jay Olson pointed out that the short interest in shares of MannKind Corporation (NASDAQ: MNKD) has "grown high" over the past two years.

According to Olson, the rise in short interest can be attributed to key catalysts including FDA approval and signing of a commercial collaboration agreement. The analyst added that the days to cover has been variable but generally fluctuating around 10 days.

Olson also noted that the issuance of $100 million in convertible debt with a conversion ratio of approximately 147 shares per $1,000 face value of debt accounted for approximately 14.7 million shares, or about 17 percent of outstanding short interest in MannKind. Finally, short interest net of the convertible debt is currently about 28 percent.

Shares were downgraded to Sell from Neutral with a price target lowered to $3 from a previous $6.

Shares of MannKind recently traded at $6, down 9.6 percent.