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Diabetic Investor On MannKind: 'There's A Reason Why So Many People Are Short This Stock'

Diabetic Investor On MannKind: 'There's A Reason Why So Many People Are Short This Stock'
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  • On Tuesday, Benzinga spoke with Diabetic Investor David Kliff about MannKind Corporation (NASDAQ: MNKD), after he said in a tweet “Thinking $MNKD and #afrezza are going to turnaround is like believing the Chicago Bears are going to the Superbowl this year.”
  • Speaking on Afrezza: "This is a niche product at best."
  • Shares of MannKind were up almost 5 percent on Tuesday, but were trading flat around 3:11 p.m. ET.

Kliff noted that, when the Sanofi SA (ADR) (NYSE: SNY) deal (where the latter agreed to pay the former up to $925 million for worldwide rights to the world’s only available inhaled insulin, Afrezza) was done, "the ex-CEO of Sanofi, Chris Viehbacher, basically ignored what his team said. His due diligence team said, 'don't do this deal.' But he pushed it through." As it turns out, Sanofi's due diligence team was right, Kliff added.

The only big difference is that the drug is inhaled, instead of injected. Is this enough for an insurance company to be willing to pay the premium price? Kliff doesn't think so.

"Not that there isn’t a place for Afrezza in the treatment regimen - there is," Kliff continued, "but this is a niche product at best."

In addition, most physicians are not willing to switch their patients to other insulin medication, if the one they are currently using is working.

"So, I think Afrezza has an extraordinary battle because they are not only up against other insulins. Because their target market is poorly controlled, type 2 patients," they are also up against many other options, Kliff assured.

When you add this to MannKind’s current financial situation, "there's a reason why so many people are short this stock."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted-In: Biotech Short Ideas Health Care Small Cap Analysis Top Stories Exclusives Trading Ideas General Best of Benzinga


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