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MannKind Corporation: Investors Should Seek Truth As The Requisite To Finding This Alpha

July 24, 2014 | About:

Disclosure: I am long on MNKD.

Despite MannKind's positive developments including the company's stellar Affinity Trials' data, unanimous backing from Advisory Committees (ADCOM) experts, and FDA approval for Afrezza, Mr. Market's persistent condemnation of MannKind continues. Mannkind Corporation (MNKD) is a small company based in Valencia, California, focusing on the development and commercialization of drugs to treat diabetes. The company received FDA approval for Afrezza as treatment for Type 1 and Type 2 diabetes in June 27, 2014.

Description: Macintosh HD:Users:hungvinhtran:Desktop:mnkd_7_24_2014.png
Source: Finviz

Perhaps the combination of CFO Matt Pfeffer's insider sells and MannKind's silence since the FDA approval was the opportune time for Mr. Market to unleash his exotic Grecian bear yesterday and more market folly today – casting more dark clouds and hampering hope for investors and millions of patients suffering from diabetes. By casting negative clouds on MannKind, Mr. Market is indeed suppressing MannKind’s share price and exerting detrimental effects on the company as the suppression of share price limits MannKind capital financing and discourages larger biopharmaceuticals to form a partnership or to acquire MannKind. Hence, this negativity robs shareholders and million of patients with diabetes the opportunity to benefit from this lifesaving super rapid acting insulin, Afrezza.

I share with MannKind investors, a group of highly intelligent professional and everyday folks, as well as the patients with diabetes, the sentiment of surprise regarding the universal and persistent pessimism on MannKind. Keep in mind that MannKind Corporation is a reputable company lead by an honorable multibillionaire entrepreneur philanthropist, Doctor Alfred E. Mann. As the inventor of the insulin pump –a lifesaving biotechnology that revolutionized medical treatment for Type 1 diabetes –Doctor Mann founded more than 16 companies and rewarded loyal shareholders when he sold most of his companies at significant premiums.

Of all his companies, MannKind carries Doctor Mann's name and is the most promising because it now has an FDA approved potential blockbuster in Afrezza, plus a novel drug delivery platform called Technosphere –having vast applications in launching other drugs via the lungs or pulmonary circulations.

In following the Socratic method, I questioned the motive and merit in Mr. Market's accusations on MannKind, hoping to get answers in shedding lights for readers, shareholders, officials, as well as, million of patients suffering from diabetes.

Source: Retail Investor 360

Readers should note that I highly respect all authors and questioning fellow authors’ assertions does not mean disrespect; rather such a process indeed improves the quality, accuracy, and reputation for publishing community. It is imperative for readers to realize that scientifically and medically biased journalism is detrimental not only to shareholders and patients with diabetes but also medical advancements in general.

Consequently, investors should read news articles with "a grain of salt" as well as to ask questions like the Greek philosopher Socrates to seek the truth rather than seeking Alpha to ironically discover alphas. If an author fails to support his claims with trial data, statistics, or medicine, readers should still pay respect to these authors but take their investing thesis for its comic value. Given the inherent vulnerability to manipulation in the biopharma industry, readers should also probe the author's motives for writing such articles and whether the author's disclosures are indeed valid. As author, I can say that while some authors disclose no financial interest in a company, shady WS fund managers – employing the "pump and dump" schemes in small biotech firms – could still request private meet ups with authors.

It is worthwhile to reiterate that Mr. Market’s doomsday forecasting on MannKind Afrezza did not come true, as MannKind prevailed with stellar outcomes for the Affinity Trials, the near unanimous vote of confidence from the ADCOM experts as well as the Agency per se. As a shareholder, my patience and faith in Mannkind have been tested during such times and the prospect of "pumping" small caps biotech is indeed the easy road. Needless to say, I felt compelled to deliver the firm message echoing truth, hope, and faith in MannKind. Though taking the "easy road" would lift my life of burdens but doing so is unconscientious.

Despite the negativity, including Mr. Market's army of bears and CFO Matt Pfeffer 10b501 or prearranged transactions, I continue to believe in MannKind. Whether MannKind's prospect is hampered by Mr. Market's discriminations of Afrezza resulted from Exubera’s failure or whatever fiction Mr. Market conjured to potentially deter partnerships or buyout, I voted my Galvanized faith in Mannkind during these rainy days and to purchase more shares and calling you to increase shares purchase.

Regardless of how Mannkind chooses to commercialize Afrezza – be it internal launch, partnership, or buyout –investors can rest assured that Doctor Mann put his "money where his mouth is" by holding the majority of the 45 percent insider stakes and he has yet to sell a share. It is prudent that investors exercise integrity, patience, and diligence to achieve the conviction needed to hold their shares and refuse to be victimized by Mr. Market.

As a final note, investing research is an imperfect science with elements of art. Hence, I cannot guarantee that my thesis is 100 percent accurate. Nonetheless, 360's research is among the most accurate in the industry. Investors could achieve similar or better accuracy by adhering the aforementioned principles and using my research as starting points in your own due diligence.

"Integrity, ingenuity, essence, and essentially all else follow"

About the author:

hvt2107
I have the background as an MD and a researcher. I am currently the Chief Medical Analyst for Retail Investor 360 and I host my internet show 360 Biotech With Doctor Tran. I am also a contributing author for Seeking Alpha.

Visit hvt2107's Website


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Comments

nelly90
Nelly90 - 4 months ago

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hvt2107
Hvt2107 - 4 months ago

@Nelly90, Thank you!

wmdhunt
Wmdhunt - 4 months ago

Well, I'm in a maintenance call again because of the way Mannkind stock behaves. I have to fund the shortfall or sell off some more MNKD. I am really getting tired of this "soccer game" where things decline for long periods only to be punctuated by a big "score" once in awhile. I am not Albert Mann with billions to ride and it hurts when this stock and it's CFO behave this way. I want to "hang on" but it's not easy. Hope this lives up to the dream and potential soon before I am washed out.

pny372
Pny372 - 4 months ago

HVT, thank you for your diligence and being the voice of reason in all of this. We really need it on a day like this.

hvt2107
Hvt2107 - 4 months ago

@Wmdhunt I am sorry that the fund is shorting MNKD and brought more dark clouds. In this market, stock could fluctuate wildly and it's important not to buy on margin or to put stop loss order. It is quite painful as I experience similar stress as you do, when seeing your stock drop in SP but it's quite important to have a strong stomach to not sell out. As I remembered prior to the ADCOM, negative news sent Mannkind down by more than 20 percent as Mr. Market forecasted his doomsday scenarios for Afrezza. At the time when Mr. Market is fearful, I got aggressive and recommended Mannkind shareholders to build increasing shares. Wth the +ADCOM, the stock doubled. We are experiencing similar market pessimism, and you could use my research as starting points to help you in your diligence, as well as, to be convict to hold your shares or better yet to purchase more shares. While no one know how the stock will go in the short terms, but being strategic, diligent, and patient will help you to earn outstanding performance over time.

@pny372 Thank you! While anything goes in this game but the odd highly favor MNKD as a prudent investment. It doesn't help when the media broadcast nearly unanimous news but I am holding on tight and I view this as opportunity to put my money where my mouth and hold my shares!

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