MannKind Falls 3.8% Is the Worst Over?

[Stocks-to-Watch]

Did the talk with analysts by management of biotech MannKind (MNKD) do the trick?

Hard to tell. As you may recall, the stock yesterday fell roughly 25% after the company revealed the FDA asked for more information on an inhaled version of insulin called “Afrezza.”

Today the shares closed down another 30 cents, or 3.8%, at $7.59, after chairman and CEO Alfred Mann told analysts, “At this point, we have no reason to believe that our plans to launch in 2011 are adversely impacted by the issues raised in the Complete Response letter.”

But some analysts, as I mentioned yesterday think it could go as low as $2, so the question is whether today’s discussion has forestalled an even bigger drop in the shares.

Despite the fact that management thinks it can still ship on time, the call indicated a final “label” has not been settled on for Afrezza. That leaves up in the air whether Afrezza may still get slapped with a lung cancer warning, which would be a big set-back for the drug.



Original Article Source by Barrons.com