MannKind (MNKD) Stock Pops As Investors Await Trial Initiation

MannKind MNKD Stock News

MannKind Corporation (NASDAQ: MNKD) is having a relatively strong start to the trading session, trading on gains of more than 5% early on. While there is no news out that was released by the company via press release or SEC filing, we believe that we’ve found the reason for the run. Moreover, the cause gives us something to look forward to.

Ultimately, the gains seem to be the result of the anniversary of a press release, suggesting that a catalystic event is just around the corner. Here’s what’s happening:

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MNKD Stock Could Benefit From A Big Catalyst Ahead

A year ago today, MannKind Corporation issued this press release. In the release, the company announced that it entered into an exclusive worldwide license and collaboration agreement.

The agreement, signed with United Therapeutics (NASDAQ: UTHR), surrounds the development and commercialization of a dry powder formulation of treprostinil. The two plan on developing the product as a potential option for the treatment of pulmonary arterial hypertension.

As part of the agreement, United Therapeutics would be responsible for global development, regulatory and commercial activities. MNKD would be in charge of manufacturing clinical supplies and initial commercial supplies of the product. However, long-term commercial supplies are to be manufactured by UTHR.

Part of the agreement stipulates that MNKD will be paid certain development milestone payments, should these milestones be achieved.

Importantly, according to, the first clinical trial of this treatment was expected to start in August of 2019. Today is September 4, 2019, four days after the end of the period in which a clinical trial was expected to begin.

This means that there’s likely going to be an announcement in the coming days, or at latest, the coming weeks from United Therapeutics. The announcement should be the initiation of the clinical trial surrounding the dry powder formulation of treprostinil.

While the details surrounding which events will trigger which milestone payments were not released, there’s a strong chance that when UTHR announces the initiation of the clinical trial, it will trigger a payment to MannKind.

The Future Could Be Very Good

In my view, the future for MannKind is looking pretty good, with respect to this particular agreement. Should the clinical study be initiated soon, MNKD is likely to head for the top, but the short term is not what impresses me here.

The truth of the matter is that United Therapeutics is a great partner to have, and the pulmonary arterial hypertension market is a great one to be in. Grand View Research estimates that the market will grow to be worth more than $9 billion annually by 2026. Should all go well, tapping into a market of this side would be very beneficial.

All in all, considering the catalyst that’s likely just around the corner, and the long term implications of tapping into such a large market, MNKD is a stock that’s worth watching closely.

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