| MannKind: 'Encouraged By Early Feedback' on Afrezza Launch -- Barron's Blog | By Ben Levisohn
Jefferies' Shaunak Deepak found MannKind's ( MNKD) early take on the Afrezza launch encouraging:
On its earnings call, MannKind was straightforward about expectations that the Afrezza launch would not be explosive, but rather slow and steady. That said, we were encouraged by the early feedback and the fact that Sanofi ( SNY) asked to increase the volume of Afrezza samples, as demand has been higher than anticipated. MannKind noted reimbursement discussions were ongoing and that while some plans placed Afrezza on Tier 3, other plans were requiring prior authorization. We believe that the Afrezza Patient Savings Card may help ease the financial burden for many patients, while these arrangements are being sorted out. Looking ahead to 2Q, MannKind is on track for approval of 12-Unit dose of Afrezza, offering a larger single- dose option to more advanced patients, and bringing additional manufacturing capacity online, enabling production of three times as many cartridges as today. While we see these as positive steps, we continue to believe that the Afrezza launch will take time, as physicians will need to change the way they use mealtime insulin to fully realize Afrezza's potential in insulin-nai ve patients.
Deepak rates MannKind a Buy, with a $10 price target. With MannKind shares trading off 1.7% at $6.79 today, that leaves 47% of upside to Deepak's target. Sanofi has fallen 3% to $48.91.
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