Leerink Partners analyst Thomas Smith has reiterated their bullish stance on MNKD stock, giving a Buy rating yesterday.
Thomas Smith’s Buy rating for MannKind’s stock is derived from a strategic financial move that the company has made. MannKind recently engaged in a transaction with Sagard Healthcare that not only significantly boosts its cash reserves but also maintains a substantial royalty interest in its Tyvaso DPI product. This deal is seen as a positive development for the company’s financial health, offering more flexibility for both operations and potential future investments. The immediate cash infusion from the sale is expected to provide a solid foundation for the company’s ongoing and future activities.
Moreover, the structure of the agreement with Sagard allows for additional financial gains contingent on the achievement of certain sales milestones for Tyvaso DPI. With the product already generating considerable revenue, and the potential for label expansion, the outlook for these milestones being met is optimistic. Smith’s assessment likely factors in the product’s current market performance and its projected growth, which could lead to MannKind reaping even more financial benefits down the line. This potential for growth, coupled with the immediate increase in cash assets, supports Smith’s favorable rating of MannKind’s stock.
In another report released yesterday, H.C. Wainwright also reiterated a Buy rating on the stock with a $7.50 price target.
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MannKind (MNKD) Company Description:
MannKind Corp. is a biopharmaceutical company. It focuses on the discovery, development and, commercialization of therapeutic products for diseases, such as diabetes and cancer. The company was founded by Alfred E. Mann on February 14, 1991 and is headquartered in Westlake Village, CA.
Read More on MNKD:
- MannKind and Sagard Healthcare Enter Into Royalty Purchase Agreement for Up to $200 Million
- MannKind and Sagard Healthcare sign royalty purchase agreement for up to $200M
- MannKind Corporation to Present at 42nd Annual J.P. Morgan Healthcare Conference
- MannKind enters into 7th amendment to supply pact with Amphastar
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