MannKind: December MidCap Requirement And Afrezza Losses

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About: MannKind Corporation (MNKD)
by: John Kastanes
This article is exclusive for subscribers.
John Kastanes
Long/short equity, special situations, biotech
Summary

My model of trailing 12-month net revenue had MannKind missing November's MidCap requirement. Some raised issues with my model. However, without a multi-million dollar order, MannKind will miss December's requirement.

The December MidCap requirement will cause share price to remain below $1.60, making 23.3 million shares unencumbered.

MannKind boasts of Afrezza gross profitability. However, that doesn't translate to Afrezza profitability.

Afrezza will launch in Brazil in early 2020. If MannKind would provide assurance of the remaining $35 million from MidCap, share price could rise during 2020.

As December comes to an end, two events will influence MannKind (MNKD) share price in the near term: (1) the MidCap December $27 million trailing 12-month net revenue, and (2) the expiration of