MannKind (NASDAQ: MNKD)
MannKind is one of the most interesting bets in the biotechnology sector. The company focuses on discovery, development and commercialization of cancer and diabetes treatments. The main candidate of MannKind is AFREZZA, which is an inhalable insulin product. The drug is currently in late stage clinical trials and it is highly likely that it will get the FDA approval. This is because Pfizer’s Exubera has already received FDAs approval and it was a very similar product.
Pfizer’s product failed due to low absorption rates of its delivery mechanism. This low absorption resulted in lung deposits, which was a health risk. AFREZZA is a much safer product due to a better delivery mechanism and is also available at cheaper prices. These price levels will make it much easier for the company to compete with conventional insulin products.
The company is currently trading at a 35% discount to its mean sell side target price of $5.5. In the last six months insiders have purchased approximately 40 million shares of the company, increasing insider holdings by approximately 150%. In the same period institutions have increased their holdings by approximately 7 million shares, an increase of 17%.
All three companies provide a good buying opportunity for investors. Insider interest shows that good things can be expected from these stocks in the future. Prospective investors should do their own due diligence before going for anyone of these stocks.
http://beta.fool.com/smartequity/2013/03/19/3-bio-techs-insiders-love/27291/?source=eogyholnk0000001
