MannKind Corporation (MNKD) Shares Fall Over 30% After Agreement with Sanofi (SNY) is Terminated


Shares of MannKind Corporation (NASDAQ:MNKD) are free falling this morning after the company announced the termination of a collaboration agreement and license deal with Sanofi (NYSE:SNY) for the commercialization and development of a drug called Afrezza which is an inhaled insulin.

Investors apparently are not happy about this, as the stock continues to fall this morning. It should be interesting to see if MannKind Corporation (NASDAQ:MNKD) is able to reach some other sort of deal for the drug with another company.

The stock is down 31.96% or $0.463 following the news, hitting $0.987 per share. About 5.77 million shares traded hands or 11.61% up from the average. MNKD has declined 71.90% since June 1, 2015 and is downtrending. It has underperformed the S&P500 by 69.77%.

From a total of 4 analysts covering Mannkind (NASDAQ:MNKD) stock, 1 rate it a “Buy”, 2 a “Sell”, and 1 a “Hold”. This means that 25% of the ratings are positive. The highest target price is $9 while the lowest target price is $1. The mean of all analyst targets is $2.61 which is 164.44% above today’s ($0.987) stock price. Mannkind was the topic of 5 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Griffin Securities downgraded shares on November 16 to a “Neutral” rating. Piper Jaffray downgraded MNKD stock in a recent report from September 9 to a “Underweight” rating.

The institutional sentiment decreased to 1.04 in Q2 2015. It’s down 0.23, from 1.27 in 2015Q2. The ratio dropped, as 38 funds sold all their MannKind Corporation shares they owned while 39 reduced their positions. 25 funds bought stakes while 55 increased their total positions. Institutions now own 89.26 million shares which is 32.31% less than the previous share count of 131.87 million in 2015Q2.

Greywolf Capital Management Lp holds 4.78% of its total portfolio in MannKind Corporation, equating to 9.08 million shares. Aym Capital Llc owns 154,000 shares representing 1.81% of their total US portfolio. Moreover, National Asset Management Inc. has 0.51% of their total portfolio invested in the company, equating to 663,089 shares. The California-based Old West Investment Management Llc has a total of 0.44% of their portfolio invested in the stock. Bolton Lp, a Connecticut-based fund reported 786,000 shares owned.

MannKind Corporation is a biopharmaceutical firm focused on the discovery and development of therapeutic products for diseases, such as diabetes. The company has a market cap of $422.92 million. The Company’s product candidate is AFREZZA, inhaled insulin used to control high blood sugar in adults with type one and type two diabetes and also to improve glycemic control. It currently has negative earnings. AFREZZA consists of a dry formulation of human insulin delivered from a small and portable inhaler.