MRK - MannKind Outperforms As Tyvaso DPI Captures Market Share

2024-05-15 01:22:49 ET

Summary

• MannKind's Q1 revenue rose 63% year-over-year; net income was $10.63 million, reversing a prior loss.
• Tyvaso DPI, utilizing MannKind’s technosphere technology, continues to capture significant PAH market interest.
• Despite high current assets, the Company's long-term liabilities exceed its assets, posing potential financial risks.
• Recommend buying MNKD for a barbell strategy portfolio, allocating a small portion to this high-alpha stock.

MannKind Navigates PAH Market with Strong Q1 Earnings Surge

MannKind Corporation ( MNKD ) is up 21.4% since my last look in February. Back then, my focus was on the company selling 10% (1% of its 10% royalty) of its Tyvaso DPI stake for $150 million upfront (with an additional $50 million possible). To me, this signaled that MNKD's remaining Tyvaso DPI stake was worth upwards of $1.8 billion. MannKind's valuation at that time was just under $1 billion, so this signaled some undervaluation. Subsequently, my rating was buy....

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