Market Overview

Piper Jaffray Drops Hammer On MannKind

Share:
Piper Jaffray Drops Hammer On MannKind
Related MNKD
Benzinga's Daily Biotech Pulse: ARMO Skyrockets On Eli Lilly Deal, Akcea Meets FDA Panel, vTv Alzheimer's Trial Results
Benzinga Pro's 5 Stocks To Watch Today
Related SNY
Benzinga's Daily Biotech Pulse: Intra-cellular Moves On Poster Presentation, Earnings Beats From Vertex, Exact Sciences
The Week Ahead In Biotech: PDUFA Dates, IPOs And More
'Safer' Dividend Healthcare Top WallStar Gainers Are Gilead, Sanofi, Amerisource, Anthem, And Johnson, Per Broker May Targets (Seeking Alpha)
  • Shares of MannKind Corporation (NASDAQ: MNKD) have declined more than 28 percent, year to date.
  • Piper Jaffray’s Joshua E. Schimmer has downgraded the rating on MannKind from Neutral to Underweight, while reducing the price target to $1.50.
  • Schimmer believes the company has “vastly over-estimated” the commercial potential of Afrezza for diabetes. The drug is being viewed as a very niche product.

According to the Piper Jaffray report, the launch of the company’s new diabetes drug, Afrezza, has been “lacklustre to say the least.” Checks with specialists suggest that while there is an increasing use of Afrezza in their practice, although not a “dramatic” increase.

Schimmer pointed out that physicians were viewing Afrezza as a “niche” product that is mainly beneficial only to a small group of “needlephobic” patients. “The hassles of PFT monitoring and repeated cartridge administration were seen as drawbacks unlikely to abate any time soon” the report said.

The patient blogs, on the other hand, describe “good” glucose control but view the drug as a device that is “very challenging” to use and takes a lot of time to learn.

“While the unmet need for glucose control is high, we are skeptical that MNKD will find attractive commercial opportunities where the TI profile can command premium pricing and be differentiated versus alternative easy-to-use injectibles,” Schimmer added.

In addition, MannKind has been struggling with its convertible notes, high expenses and its obligation to Sanofi SA (ADR) (NYSE: SNY) under the 35/65 split for Afrezza. Schimmer also expressed concern regarding Afrezza weak sales dragging the stock down further.

The EPS estimates for 2015 and 2016 have been reduced from $0.28 to $0.25 and from $0.19 to $0.17, respectively.

Latest Ratings for MNKD

DateFirmActionFromTo
Mar 2018Maxim GroupDowngradesHoldSell
Nov 2017Maxim GroupDowngradesBuyHold
Oct 2017H.C. WainwrightInitiates Coverage OnBuy

View More Analyst Ratings for MNKD
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Short Ideas Downgrades Price Target Analyst Ratings Trading Ideas General Best of Benzinga

 

Related Articles (MNKD + SNY)

View Comments and Join the Discussion!