MannKind Corp (MNKD)

TrackZacks (90.39) Submitted: 9/11/07 6:51 PM : Start Price: $9.69 MNKD Score: 56.85

Difficult Times for MannKind

Posted Tue Sep 11, 12:46 pm ET
by Zacks Equity Research

A recent price drop in shares of MannKind Corporation (MNKD) has not made the company's valuation more attractive, according to Zacks senior biotech analyst Grant Zeng, CFA. In fact, he has downgraded the company to a Sell recently:

"MannKind is a biopharmaceutical company focused on the discovery, development, and commercialization of therapeutic products for diabetes, cancer and inflammatory diseases. Its lead product, the Technosphere Insulin System for the treatment of diabetes, is in phase III trials in the U.S.

"We believe Technosphere has certain intriguing beneficial characteristics that could make the product a success. However, the company has been unable to find a partner for the drug, competition is fierce in this field, commercialization is still at least three years away and the company is burning cash at too high a rate.

"We downgrade the stock from Hold to Sell with a revised target price of $6.00. Our target price is derived from our estimated total revenue of $113 million in 2010, multiplied by a P/S [price-to-sales] ratio of 10.0x and discounted back at 25% for 3 years (assuming weighted average number of shares of 97 million)."

Read the full analyst report on MNKD
http://www.zacks.com/ZER/zer_comp_reports.php?f_ticker=mnkd

Report this Post Replies: 0 | Reply