Excerpt from MArket Watch article:
"MannKind Corp. .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/93956 /quotes/nls/mnkd MNKD +7.62% surged by more than 9% at one point after analyst Keith Markey of Griffin Securities praised the company’s insulin drug Afrezza.
On Monday, MannKind said it completed a third phase of testing this week on Afrezza, which is expected to hit the market next year. But on Tuesday, shares fell when it was revealed a competitor, Biodel Inc. .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/10439682 /quotes/nls/biod BIOD -9.46% , was moving along with other insulin medications for treatment of diabetes.
That caused MannKind shares to tumble by more than 20% at one point on Tuesday before they recovered somewhat. Still, they ended the day down 12%.
“We think the selloff was a mistake — Afrezza is the better drug,” Markey wrote in his report released Wednesday morning. He said the inhalable drug creates fewer side effects. He added that on Tuesday, investors saw the Biodel news and that caused them to “trade first and think later.”
As a result, Biodel gained nearly 9% on Tuesday. But on Wednesday, the two switched places. As MannKind shares tried to surge back to their pre-selloff levels of Monday, Biodel slumped and gave back its gains, falling 10% in recent action to $4.28. It didn’t help much that Biodel was offering additional shares on the market at an 8.6% discount.
Biodel’s drugs, now known as BIOD-238 and BIOD-250, are touted as “ultra rapid-acting.”
“But even if Biodel continues development, its drug would need several years before it may be ready for [U.S. Food and Drug Administration] review,” Markey wrote. “MannKind has completed its final two trials of Afrezza and it is preparing for a U.S. launch in 2014 and a European launch in 2015.”"
Enjoy the ride both ways cause roller coasters wouldn't be fun if they only went up...
OOG
