MannKind Corporation (MNKD): Should You Buy?

1. Potential partners
The most important information that was announced related to potential partners for commercializing Afrezza. MannKind Corporation (NASDAQ:MNKD) is currently in discussions with multiple potential partners. Alfred Mann also stated that several others indicated they would resume discussions and due diligence in August when the clinical results are announced.

The company is talking with global and regional organizations. MannKind might even contemplate tackling the endocrine market on its own, but hasn’t made a final decision yet.

At this point, no names have been mentioned. There has been plenty of speculation for a long time about who might be a good fit. My Foolish colleague Max Macaluso suggested last year that Pfizer Inc. (NYSE:PFE) should get over its Exubera failure from years ago and snatch up MannKind Corporation (NASDAQ:MNKD). Max also pointed out that Pfizer Inc. (NYSE:PFE) needs a new blockbuster drug and offered up the idea that the inhalation technology used for Afrezza could potentially be used for other products — including Viagra.

I would put Eli Lilly & Co. (NYSE:LLY) in the same category for the reasons that Max listed for Pfizer Inc. (NYSE:PFE). Eli Lilly & Co. (NYSE:LLY) also gave up on its attempt to market an inhalable insulin product. It also needs a new blockbuster drug. And I don’t doubt the company could find some other uses for MannKind’s inhalation technology.

However, I think that Sanofi SA (NYSE:SNY) could be an even better fit. The company is a leader in the insulin market and has the sales heft to launch Afrezza globally. It also doesn’t carry the baggage of a past failure with inhalable insulin.

Liftoff?
No one knows which company or companies will ultimately partner with MannKind Corporation (NASDAQ:MNKD) or when they will do so. A partner might not be signed up until Afrezza gains approval.

I do expect that Afrezza will gain regulatory approval, though. And I think MannKind will find one or more partners rather than attempt to market the drug itself. Will this countdown ultimately result in liftoff after all these years? Let us know what you think in the comments below.

The article MannKind’s Countdown to Liftoff? originally appeared on Fool.com.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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