After a few scary weeks of nothing but negative opinion, after negative opinion, regarding the Adcom panel meeting today for Mannkind's Afrezza, the company received an absolutely overwhelming approval recommendation from experts in the diabetic medical community. After combing through the FDA briefing docs over the weekend, and the stock being continually sold off on the fear of rejection last Friday, I was completely confident that the vote would be an overwhelming approval, and it was.
Now that the FDA approval is the only thing left, which is very likely now, because more than 90% of the time, the FDA votes along side the panel recommendation, it is important to really dig down to find out what the true valuation of MNKD is, and where it should be trading on the markets. This valuation, is even a discount to the over 63 million shorted shares outstanding in the stock, that will surely have short sellers scrambling for an exit moving forward. They completely missed this one. This valuation also excludes future drug opportunities for technosphere technology, to which I have written about previously, and which is where I believe the full value truly lies in the future for many drug applications. The panel overwhelmingly legitimized the technology today. This valuation doesn't include overseas opportunities on the horizon as well.
So, with overwhelming approval recommendation from the Adcom panel experts, MNKD will enter into both the T1 and T2 diabetic markets with Afrezza. If we take into account the market size, company inventory, projected revenues, and all other aspects in just the U.S. markets, the current valuation is above $43.00 a share, and the stock re-opened for trading under $10.00. I will break the valuation numbers down after the FDA approval notification, but this stock is very undervalued here after today's results from the Adcom experts.
I own the stock at an average of $5.50 a share, and I will definitely be buying many more shares at these paulty levels. I don't expect these low prices to last very long though, so I will be on my horse in the morning trying to add as many as I can down here.
The future of MNKD just got so much brighter after a long struggle, and the door is now fully open for huge revenue across a plethora of drug markets.
Disclosure: I am long MNKD.