My valuation model gives MNKD a target share price of $12.40
which gives it 258% upside.
Afrezza is an excellent new treatment for diabetes patients. Afrezza is mealtime rapid acting insulin that is taken through an inhaler removing the need for patients to receive insulin by injecting themselves with needles.
Sales of Afrezza have been slow so far but they will likely pick-up quickly as more patients become aware of this more convenient treatment option. Patients are also used to controlling their insulin levels with injections so they would be reluctant to quickly change over to a new treatment.
Afrezza is an excellent new treatment for diabetes patients. Afrezza is mealtime rapid acting insulin that is taken through an inhaler removing the need for patients to receive insulin by injecting themselves with needles.
Sales of Afrezza have been slow so far but they will likely pick-up quickly as more patients become aware of this more convenient treatment option. Patients are also used to controlling their insulin levels with injections so they would be reluctant to quickly change over to a new treatment.
Mannkind/Sanofi are beginning a direct to consumer
advertising campaign which will help raise awareness of Afrezza and boost its
sales.
Early Afrezza users have been very positive about the new
treatment going by anecdotal twitter testaments. Their positive experiences should
help others also change over to this needleless option.
MNKD is trading at $3.50 levels down from highs of $10.50 around 15 months ago. At this price level I find MNKD a very attractive long-term risk/reward play.
Below is my valuation model with assumptions, I used the Times Revenue Multiple Valuation method.
Disclosure - MNKD is a holding of my Marketocracy Fund. This Fund is available for investment at http://www.marketocracy.com/managers.php?manager=781
Follow the links.
I do not short stocks.
