11 Best Quality Penny Stocks to Buy According to Hedge Funds

3. MannKind Corporation (NASDAQ:MNKD)

Revenue CAGR in the last 5 years: 38.86%

Net profit margin: 9.66%

Number of Hedge Fund Holders: 29

​​​MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company specializing in the development and commercialization of inhaled therapeutic products for endocrine and orphan lung diseases. Its flagship product is an FDA-approved rapid-acting inhaled insulin for adults with diabetes. The company also runs a proprietary platform that enables efficient deep-lung drug delivery, which is also utilized in treatment for pulmonary arterial hypertension developed in partnership with United Therapeutics.

MannKind Corporation (NASDAQ:MNKD) achieved record revenues in Q4 2024 of $77 million, representing a 31% increase over the previous year’s quarter, while full-year revenues reached $286 million, marking a 43% increase over the prior year. The company demonstrated strong financial management by reducing debt principal by $236 million in 2024 and ending the year with a robust cash position of $203 million. The endocrine business unit posted record revenues with Q4 revenue of $23 million and full year at $82 million.

MannKind Corporation (NASDAQ:MNKD) is advancing several strategic initiatives, including the anticipated pediatric indication filing in the first half of 2025 with expected approval in early 2026, which could potentially drive Afrezza (an important product of MNKD) sales to a projected run rate of over $200 million annually. The clofazimine inhalation suspension program is progressing, with 70% of sites activated and enrollment on track for an interim readout in 2026. The “TYVASO DPI” collaboration has proven successful, contributing to making the first $1 billion product for United Therapeutics, demonstrating the strength of MNKD’s Technosphere platform, and providing non-dilutive financing for pipeline development. The depth of MNKD’s research pipeline is impressive, which makes it one of the best penny stocks to consider.