“Partnership Announcement Doubles the Share Price”
Funds will start buying in anticipation of a partnership announcement with a “big pharma” company to market its inhaled insulin drug, Afrezza. Mannkind’s management stated that it expected to announce a partnership after the resubmission of the NDA which is expected to occur in the next two or three weeks. Company has also stated that it is seeking a partner for its cancer drug.
Once again Mannkind's Billionaire CEO, Al Mann, has committed 100% to seeing that Mannkind's insulin drug, Afrezza, will be approved. All indications are that management is totally opposed to any financing that would result in shareholder dilution and now it seems Al has switched to where he is now 100% behind a partnership which is expected to be announced within weeks of the meeting with the FDA.
20:48 Mark of the Citi 2011 Healthcare Conference Webcast:
Mr. Mann states:
"We're also exploring our partnership now that we have more clarity and with the new activity of the FDA we think that we should be able to start our partnership discussions which we were going to wait until after the meeting which will probably come some time in mid to late April."
Depending on the terms of the partnership and also who the partner is (Sanofi-Aventis is my choice)and what is covered by the partnership (my choice would be Mannkind's entire pipeline)the share price could easily go to the $10.00-$12.00 range or higher.
Tax loss sellers will be rebuying. The funds will be adding shares in anticipation of the second quarter rebound in the share price and the continued move higher to approval.
A partner that can take advantage of Mannkind's Technosphere platform would be highly desirable.
HGSI's market cap went to more than $3 billion with Glaxo in the picture.
It's obvious the share price will move higher from here and it's also obvious that there are no reasons for the share price to go lower and numerous reasons for it to go higher.
The longer the shorts wait to cover the more they'll lose. With a partnership in place and the assistance of a big pharma partner to help obtain approval in both the U.S. and Europe the share price will continue to climb over the next 18 months especially as the value of the cancer drugs become more apparent.
With a partnership in place and no potential negative events on the immediate horizon to bail out the shorts this will continue higher until Afrezza is approved.
With drugs coming "off patent" over the next three years representing more than $100 billion in revenues to the drug companies many companies are looking for drugs in late stage development that have substantial potential for replacing the loss revenues. Afrezza is one of the few drugs that has the potential to generate billions of dollars in revenues annually.
A buyout offer is always a possibility.
Great time to buy a few shares.
p.s. The shorts need to find almost 19,000,000 shares to cover. That won't be easy with the share price in an uptrend.
The FDA was scheduled to issue a decision on Mannkind's inhaled insulin, Afrezza, on December 29. However it subsequently has stated that it needs another four weeks to finalize the evaluation process and issue a decision. The decision could be released at anytime.
There is much speculation as to why the delay happened. It is my belief that Afrezza will be approved and the delay is due to determining the final label for Afrezza and establishing the guidelines for any post approval REMS programs that the FDA may require.
Approval should move the share price to the $15.00-$20.00 range. A subsequent big pharma partnership could add another $10.00 to the share price.
Almost 35% of the float is shorted: 20,000,000 shares
Mannkind’s current market cap is just over one billion dollars.
In addition to Afrezza, Mannkind also has a very promising cancer vaccine in trials.
Al Mann, the billionaire CEO of Mannkind, has a proven track record of success. He has personally invested over a billion dollars of his personal fortune in Mannkind. Within recent months he purchased another 1,400,000 shares of stock in the company and currently owns almost 45% of the company.
Mannkind may be one stock that you might want to buy at the market open on January 3. It’s quite likely that the share price will reach the $10.00 range prior to the announcement of the FDA’s decision.