H.C. Wainwright remains bullish on MannKind despite disappointing MNKD-101 news

H.C. Wainwright notes that MannKind (MNKD) announced the discontinuation of the Phase 3 ICoN-1 trial evaluating MNKD-101 for refractory non-tuberculous mycobacterial lung disease, following a futility determination after interim review of data from the first 46 patients showed no sputum culture conversions. The DSMB concurred with the decision and noted no safety concerns. The company emphasized that this outcome does not affect the development of MNKD-102, the dry powder inhalation formulation of clofazimine, which remains under evaluation for future advancement. As investors look at MNKD stock post the announcement, Wainwright believes Afrezza pediatric label expansion, Furoscix auto-injector and Tyvaso DPI in IPF, could all provide upside to our current expectations. While MannKind’s pipeline is given little value in the stock price, the announcement was a setback to changing that, the firm argues, keeping a Buy rating on the name with a price target of $11.