Market Disapproves of ImmunoGen, Inc. (NASDAQ:IMGN) Q2 Financials

ImmunoGen, Inc. (NASDAQ:IMGN)

Shareholders of ImmunoGen, Inc. (NASDAQ:IMGN) were underwhelmed by the biotech firm’s Q2 2017 financial results as the stock dropped nearly 15% today. The loss comes despite ImmunoGen reporting a narrower Q2 2017 (-$0.10) cent per share loss than the expected street estimate loss of (-$0.14).

ImmunoGen, Inc. (NASDAQ:IMGN)
One month daily candlebar graph for $IMGN

ImmunoGen, Inc. (NASDAQ:IMGN) revenues increased by 427% YoY to $39 million which beat the consensus estimate by $5 million. The revenue increase was driven by higher license and milestone fees totalling $31.1 million compared with the $0.08 million a year ago. This  figure includes a $30 million paid-up license fee related to a licensing agreement with Sanofi SNY and $1 millionphase I milestone payment from the collaboration agreement with CytomX Therapeutics. ImmunoGen’s agreement with CytomX allows each company to develop candidates to a specified number of cancer targets using CytomX’s Probody antibody-masking technology. ImmunoGen’s cash and cash equivalents at the end of Jun 2017 were $150.3 million compared with $126.6 million as of Dec 2016. The company expects to use its current cash and expected cash to fund operations through the second quarter of 2018.

ImmunoGen, Inc. (NASDAQ:IMGN) developed their proprietary ADC technology to enable the development of cancer therapies. The concept of an ADC is to deploy an antibody that will attach itself to a target (its antigen) found on tumor cells to deliver a cancer-killing agent specifically to these cells.

ImmunoGen has built a large portfolio of ADC technologies. Their technology is used in Roche’s Kadcyla® (ado-trastuzumab emtansine) – the only ADC approved to treat a type of solid tumor – and in two other ADCs now in advanced testing for different types of solid tumors.

Prior to today’s financial release, shares of ImmunoGen, Inc. (NASDAQ:IMGN) had risen over 191% YTD and over 110% for the year. In 2014, reported sales hit their high mark of $86.5 million but in 2015 the figure was $60 million and for 2016 the number came in at just $21.5 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Patient Death Halts Trial Enrollment for Invivo Therapeutics Holdings Corp (NASDAQ:NVIV)

Invivo Therapeutics Holdings Corp (NASDAQ:NVIV)

Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) shares established a new all-time low after the company voluntarily ceased enrolling patients in its INSPIRE clinical trial. The halt came after a third patient involved in the study died. However, the company stated on Monday that none of the deaths were related to the device or the implant procedure. On Friday, NVIV closed at $2.45 then plummeted over 25% on the news of the patient’s death to end the day at $1.80.

Invivo Therapeutics Holdings Corp (NASDAQ:NVIV)
One month daily candlebar graph for $NVIV

Invivo Therapeutics Holdings Corp (NASDAQ:NVIV)’s approach to treating spinal cord injuries revolves around the investigational Neuro-Spinal Scaffold. The Neuro-Spinal Scaffold is intended to be inserted into the spinal cord at the site of injury and will break down over several weeks. The goal of the Neuro-Spinal Scaffold is to modulate the healing environment in acute Spinal Cord Injury (SCI) and provide the structural support in acute and chronic injury necessary to promote a local environment supportive of cell survival and growth. The properties of the Neuro-Spinal Scaffold make it the only SCI therapy focused solely on treating SCI directly at the epicenter of the injury.

Even as it announced a third patient death in the trial, Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) said that two more patients had met the primary goal of the study: being “converted,” or having their condition upgraded on a five-point scale, six months after implantation. So far, according to InVivo, 6 of 11 patients have achieved that goal. As a result of the temporary enrollment halt, InVivo anticipates completing INSPIRE enrollment in the first half of 2018 and submitting a Humanitarian Device Exemption (HDE) application in the second half of 2018.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Strongbridge Biopharma plc (NASDAQ:SBBP) Continues Climb

Strongbridge Biopharma plc (NASDAQ:SBBP)

Strongbridge Biopharma plc (NASDAQ:SBBP) shares are up over 15% and are trading around $8.00 on a volume figure over three times the daily average. Strongbridge Biopharma plc (NASDAQ:SBBP) has never posted any earnings or profits.

Strongbridge Biopharma plc (NASDAQ:SBBP)
Onemonth daily candlebar graph for $SBBP

Strongbridge Biopharma is a global commercial-stage biopharmaceutical company that develops and commercializes therapies for rare diseases with significant unmet needs. Strongbridge’s first commercial product is KEVEYIS® (dichlorphenamide). The drug is the only FDA-approved treatment for hyperkalemic, hypokalemic, and related variants of Primary Periodic Paralysis. KEVEYIS has orphan drug exclusivity status in the United States through August 7, 2022. Strongbridge has a clinical-stage pipeline of therapies for rare endocrine diseases. RECORLEV™ (levoketoconazole) is a cortisol synthesis inhibitor currently being evaluated for the treatment of endogenous Cushing’s syndrome, and veldoreotide, a next-generation somatostatin analog being investigated for the treatment of acromegaly. Both RECORLEV and veldoreotide have received orphan designation from the U.S. Food and Drug Administration and the European Medicines Agency.

On July 17, 2017, Strongbridge Biopharma plc (NASDAQ:SBBP) announced that it has entered into a $50 million senior credit facility with CRG LP (“CRG”), a healthcare-focused investment firm, to retire its existing debt facility and provide additional capital. The term loan agreement has a six-year term with three years of interest-only payments. The interest-only period may be extended to six years based upon the achievement of certain milestones during the first three years of the loan term. As a condition to the new credit facility, Strongbridge Biopharma plc (NASDAQ:SBBP) issued warrants with a seven-year term to CRG to purchase 394,289 of the Company’s ordinary shares at an exercise price of $7.37 per share.

Strongbridge initially borrowed $40 million under the term loan agreement and has the option to borrow an additional $10 million based upon the achievement of certain revenue milestones on or prior to June 30, 2018. Concurrent with this first tranche, CRG purchased $3 million of the Strongbridge’s ordinary shares at a price of $6.98 per share.

Strongbridge Biopharma plc (NASDAQ:SBBP) will host a conference call on Monday, August 7 at 9:00 a.m. ET. To access the live call, dial 844-285-7153 (domestic) or 478-219-0180 (international). The conference call will also be audio webcast from the Company’s website at www.strongbridgebio.com under the “Investor/Webcasts and Presentations” section. A replay of the call will be made available for one week following the conference call. To hear a replay of the call, dial 855-859-2056 (domestic) or 404-537-3406 (international) with conference ID 61074112.

 

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SBBP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

What is Propelling Novan Inc (NASDAQ:NOVN)?

Novan Inc (NASDAQ:NOVN)

Novan Inc (NASDAQ:NOVN) closed last Thursday at $4.26 and have hit as high as $6.27 in today’s trading. No financial or earnings news has been released by the company that could realistically propel a two-day increase of over 45%. Shares of Novan Inc (NASDAQ:NOVN) have a listed 30-day daily volume average of just under 93,000. However, on Friday over 750,000 shares traded hands and over 2.2 million have been traded by 2:10 PM EST today. Volume and price increase may be the result of trading chat rooms developing a buying momentum behind the shares which, if successful, becomes a self-fulfilling prophesy until traders start exiting the position to traders not fortunate to enter the trade earlier. The $NOVN twitter feed lends support to such a view.

Novan Inc (NASDAQ:NOVN)
One month daily candlebar graph for $NOVN

Novan Inc (NASDAQ:NOVN), a clinical-stage dermatological drug development company, is in the business of developing and commercializing nitric oxide-based therapies. Its lead product candidate is SB204. The company is scheduled to have a New Drug Application preliminary meeting with the U.S. Food and Drug Administration (FDA) in Q3 2017. SB204 is a topical gel that targets multiple mechanisms of action for the treatment of acne vulgaris. The Phase 3 results were decidedly mixed and that realization sent shares crashing down over 75% at one point. Acne vulgaris is the most common skin condition in Americ. It is estimated to affect, annually, approximately 40 million to 50 million Americans. Novan Inc (NASDAQ:NOVN) also has a drug candidate, SB206, ending its Phase 2 clinical trial in Q2 of 2017. SB206 was developed to treat the Human papillomavirus (HPV). HPV affects nearly 80 million Americans, and an estimated 14 million new cases of the virus are reported each year, according to the Centers for Disease Control and Prevention.

The two-day run on NOVN comes less than a month after the company changed leadership and announced a 20% workforce reduction to cope with a dwindling cash supply – just $30 million reported in early July. For 2016, NOVN shareholders had a per share loss of (-$9.97) and, to date, there is little evidence that justifies the recent jump in share price.

 

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NOVN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Hard Choices Remain for Tenax Therapeutics Inc (NASDAQ:TENX)

Tenax Therapeutics Inc (NASDAQ:TENX)

After the market close last Friday, Tenax Therapeutics Inc (NASDAQ:TENX) provided a regulatory update after consultations with the U.S. Food and Drug Administration (FDA) and Health Canada regarding a regulatory path forward for their drug candidate levosimendan. The market has reacted negatively today, sending the shares down over 25% by noon EST on volume over seven times their listed 30-day average.

Tenax Therapeutics Inc (NASDAQ:TENX)
One month daily candlebar graph for $TENX

Last May, Tenax Therapeutics Inc (NASDAQ:TENX) held discussions with the FDA on a New Drug Application (NDA) for levosimendan in two indications – artery bypass grafting and acute decompensated heart failure. According to Tenax’s press release, the FDA has reviewed existing analyses and decided to request additional clinical trials.

The expense associated with such trials is enormous and Tenax Therapeutics Inc (NASDAQ:TENX) has decided to consult with their financial advisors before deciding on a path forward. The additional clinical trials would necessarily lower any ROI associated with the commercialization associated with the drug candidates if it was approved for sale by the FDA – a decision that is not guaranteed by any stretch. Accordingly, the company will also be considering strategic alternatives with Ladenburg Thalmann & Co. that will likely include a sale, merger, or strategic investment amongst other possibilities – none of which bode well for current shareholders.

Adjusted for dilution, shares of Tenax Therapeutics Inc (NASDAQ:TENX) had traded above $160 per share back in 2009 before going into a long decline that has not seen the shares trade above $1 since February. YTD, TENX shares are down over 60%, and are down over 70% for the year. In 2012, shareholders experienced a per share loss of (-$6.29) but that loss narrowed each successive year until 2016. In 2016 the per share loss was posted at (-$1.56) – an increase over 2015’s per share loss of (-$036). According to the NASDAQ>com website, there is only one firm that follows TENX shares and they give them a “Strong Buy” rating. The name of the lone firm? Ladenburg Thalmann & Co.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $TENX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

FDA Committee Vote Boosts Dynavax Technologies Corporation (NASDAQ:DVAX)

Dynavax Technologies Corporation (NASDAQ:DVAX)

Dynavax Technologies Corporation (NASDAQ:DVAX) shares are up over 70% on positive news from the U.S. Food and Drug Administration (FDA) and ratings upgrades from RBC Capital Markets and JP Morgan. The listed average daily volume for DVAX shares is 1.8 million but by 11:40 AM EST, over14.6 million shares had traded.

Dynavax Technologies Corporation (NASDAQ:DVAX)
One month daily candlebar graph for $DVAX

The catalyst for the share increase was news, dated last Friday, that the FDA’s Related Biological Products Advisory Committee (VRBPAC) voted 12 to 1 that for Dynavax’s HEPLISAV-B vaccine’s safety data support licensure for immunization against hepatitis B infection in adults. Established hepatitis B vaccines are administered in three doses over a six-month schedule. The HEPLISAV-B schedule is two doses over one month. Results of a published Vaccine Safety Datalink study showed that only 54 percent of adults completed the three-dose hepatitis B vaccine series in one year. Hepatitis B is a viral liver disease that can lead to cirrhosis of the liver, hepatocellular carcinoma, and death. In the U.S., the number of reported cases of acute hepatitis B increased more than 20 percent in 2015.

Eddie Gray, CEO of Dynavax, stated “Clinical studies of HEPLISAV-B have shown that the vaccine provides increased rates of seroprotection. In addition, the two-dose regimen offers the potential to increase patient compliance, which physicians and advocates agree is essential to preventing more cases of hepatitis B and achieving the public health goal of eradication. We look forward to completing our ongoing discussions with the FDA regarding an appropriate post-marketing commitment as it finalizes its review.”

Over 11% of Dynavax Technologies Corporation (NASDAQ:DVAX) outstanding shares are held short. In 2012 DVAX shares had an EPS loss, adjusted for dilution, of (-$4.10). In the years that followed losses continued but were steadily narrower: (-$3.83), (-$3.45), (-$3.25), and in 2016 the loss was (-$2.92). However, the number of outstanding shares follows a steady upward trend. In 2012 there were 17.05 million outstanding shares. By 2016 that number had steadily grown and stood at 38.51 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DVAX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Bankruptcy for DragonWave, Inc.(USA) (NASDAQ:DRWI)?

DragonWave, Inc.(USA) (NASDAQ:DRWI)

DragonWave, Inc.(USA) (NASDAQ:DRWI) shares are down almost 70%, on massive volumes, and have hit new 52-week lows after the company received notification from creditors of their intent to place the company in receivership. DRWI shares closed at $0.89 on Friday after the Toronto Stock Exchange suspended trading in the shares based on the afore-mentioned news. However, DRWI shares appear to be trading on the Nasdaq Exchange as of this morning.

Comerica Bank and Export Development Canada, secured lenders to DragonWave, have filed an application with the Ontario Superior Court of Justice to appoint KSV Kofman Inc. as receiver over the business and assets of DragonWave, Inc.(USA) (NASDAQ:DRWI). The Application is scheduled to be heard today at 9:30 a.m. The lenders stated that they will pursue a short, court-supervised sale process conducted by KSV Kofman Inc. to maximize value for the lenders and other stakeholders.

DragonWave, Inc.(USA) (NASDAQ:DRWI) received notice from the Toronto Stock Exchange (TSX) that the exchange is reviewing the listing eligibility for DRWI shares pursuant to Part VII of the TSX Company Manual – specifically the terms outlined in section 708 (Insolvency) and sections 709 and 710(a)(i) (Financial Condition and/or Operating Results) of the Company Manual are applicable to the Company. DragonWave, Inc.(USA) (NASDAQ:DRWI) is being reviewed under the Expedited Review Process of the TSX. As a result, the Company’s shares have been suspended from trading until further notice. A meeting of the Continued Listing Committee of the TSX is scheduled to be held on July 31, to consider whether or not to delist DRWI shares. If Dragonwave’s securities are delisted from the TSX, the company may consider an alternative listing on the TSX Venture Exchange or NEX.

Lastly, the Nasdaq Exchange has informed DragonWave, Inc.(USA) (NASDAQ:DRWI) that they will receive a notice of delisting on Monday, July 31, 2017, with delisting to occur on Wednesday, August 2, 2017.

Information on this company is fluid and sometimes contradictory – even from established news sources. If you plan to enter or exit a position we strongly encourage you to personally consult with a reputable broker who has access to primary sources of information.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DRWI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

NXT-ID Inc (NASDAQ:NXTD) Struggling to Hold Gains

NXT-ID Inc (NASDAQ:NXTD)

NXT-ID Inc (NASDAQ:NXTD) shares have gapped up to open with over a 20% gain as of 9:35 AM EST at $1.84. The market is reacting to the biometric company’s quarterly and six-month preliminary financial release. Volume is heavy – about 40 times the daily average. However sellers moved in and proceeded to unload shares and shares of NXTD were down to $1.65 by 9:50 AM EST.

NXT-ID Inc (NASDAQ:NXTD)
5 day 15 minute candlebar graph for $NXTD

NXT-ID Inc (NASDAQ:NXTD) has three subsidiaries. LogicMark, LLC, manufactures and distributes non-monitored and monitored personal emergency response systems that are sold through dealers and the United States Department of Veterans Affairs. Fit Pay, Inc., a proprietary payment technology platform for device manufacturers that offer their users a secure service within the Internet of Things (IoT) ecosystem. Lastly, 3D-ID LLC develops biometric identification and authentication services.

NXT-ID Inc (NASDAQ:NXTD) revenue for Q2 2017 was approximately $7.6 million compared to $38,493 for the same period in previous year and approximately $6.7 million for Q1 2017. Gross profit for Q2 2017 was approximately $3.8 million compared to a gross loss of $(25,251) in Q2 2017 and a gross profit of $3.5 million for Q1 2017. Operating expenses were approximately $3.0 million in Q2 2017 compared to $2.3 million in Q2 2016. Operating expenses were approximately $2.5 million in Q1 2017.

NXT-ID Inc (NASDAQ:NXTD) revenue for the first six months of 2017 was approximately $14.3 million compared to $80,795 for the same period in previous year. Gross profit for the first six months of 2017 was approximately $7.3 million compared to a gross loss of $(58,374) for the same period in previous year. Operating expenses were approximately $5.5 million for the first six months of 2017 compared to $4.6 million for the same period in previous year. Operating income for the first six months of 2017 was approximately $1.8 million compared to an operating loss of $(4.6) million for the same period in previous year.

NXT-ID Inc (NASDAQ:NXTD) shares have not performed well in an up-market. YTD NXTD shares are down over 45%, and down over 66% for the year. In 2012, shares of NXT-ID Inc (NASDAQ:NXTD) had a minor loss of (-$0.10) per shares but that loss expanded over the next few years. In 2013, the loss was (-$-0.72), followed by a loss of (-$3.10), then a loss of (-$4.82). In 2016 the loss finally narrowed from the previous year to a loss of (-$2.24). On a positive note, NXT-ID Inc (NASDAQ:NXTD) reported $7.7 million in sales for 2016 – a gain of $7.1 million over thei 2015 figure.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NXTD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Will OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) Halt Slide?

OWC Pharmaceutical Research Corp (OTCMKTS:OWCP)

Shares of OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) gained 4.50% last Friday, but still were at levels unseen since early January of 2017. Share volume was heavy – about 75% over their 30-day daily average of 1.2 million. Over two million shares traded hands with a notional value of over $700,000.

$OWCP Graph
One World Cannabis One Month Daily Candlebar Graph

One World Cannabis Ltd. (OWC) is a wholly owned subsidiary of OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) and discovers and develops cannabis-based therapies and treatments for ilnesses including multiple myeloma, psoriasis, fibromyalgia, PTSD, and migraines. OWC is also developing proprietary delivery systems for the delivery and dosage of medical-grade cannabis. All OWC research is conducted at leading Israeli hospitals and scientific institutions. OWC has two divisions – research and consulting. Its research division pursues clinical trials that will evaluate the effectiveness of cannabinoids for the treatment of various medical conditions. OWC’s consulting division assists governments and private entities create and navigate legal cannabis regulatory frameworks on a global basis.

At the beginning of 2017, shares of OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) began rocketing up from under $0.20 per share to, by the end of February, over $3.20 per share. The catalyst for the gains was a number of appointments to key posts in the company followed by the company receiving the Israeli Institutional Review Board’s (IRB) approval to conduct safety testing on its proprietary topical creme compound for the treatment of psoriasis and related skin conditions. That news followed a U.S. SEC 8K filing announcing an extension to the size and scope of its efficacy study on the same compound, which began in November 2106.

However, since that time, OWCP shareholders have lost interest and last week OWCP shares began trading under $0.40 per share. Some observers believe that OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) may have a tough time creating a commercially viable product to generate revenues. Cannabinoid-based creams to treat skin ailments have existed for some time but without scientific study to back them up. OWC Pharmaceutical Research Corp (OTCMKTS:OWCP) is now pursuing clinical trials that would, hopefully, confirm the safety and efficacy of such a treatment. However, should One World Cannabis prove the science, what is to stop existing cannabinoid-based creams from piggy-backing on the results for a fraction of the cost as they had no such expense to absorb?

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OWCP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Why Aren’t Investors Buying Up Shares of MannKind Corporation (NASDAQ:MNKD)?

MannKind Corporation (NASDAQ:MNKD)

Share volume for MannKind Corporation (NASDAQ:MNKD) was extremely light on Friday but the biotech firm still remains one of the most discussed stocks in social media trading forums. Barely more than 1.1 million shares of MNKD traded hands on Friday. MNKD has a listed daily volume average of close to 3.6 million which puts Friday’s activity about 70% below the average. Shares were up 3.13% despite the S&P 500 being slightly down, but this makes sense as MNKD has been more than three times as risky, historically speaking, to hold as the broader stock index.

MannKind Corporation (NASDAQ:MNKD)
Unadjusted one year MNKD candlebar graph

As far as the trader’s forums are concerned, few stocks generate as much chatter as MannKind Corporation (NASDAQ:MNKD). The two that battle for the lead are Delcath Systems, Inc.

(NASDAQ:DCTH) and CytRx Corporation (NASDAQ:CYTR). However, MannKind may be the better play when all is said and done. Their ground-breaking, diabetic-focused drug Afrezza has already received FDA approval and is being marketed in a variety of media. The real question for MannKind shareholders is whether or not the drug will see a rate of sales increase that would save the company from having to seek “strategic alternatives” such as a sale, merger, or licensing agreement.

Right now, the market appears to be unimpressed by Afrezza’s performance. For 2016 the company booked, for the first time ever, sales figures – but, in early March, it also had to undergo a 1:5 reverse split to maintain compliance with exchange regulations. Their annual revenue number came in at $ 176 million and resulted in a $1.37 per share profit. But here is what the market thought of that performance which was released to the public on March 16, 2017 – MNKD shares ended up by over 3% for the day to close at $2.22 then went on a massive slide over the next few weeks and on May 3 MNKD shares closed under $0.70.

Short-sellers have been relentless as they bet that the company will not be able to turn the business around and recoup its development expenses at a rate that justifies the investment. Since 2011, analysts have either downgraded or reiterated their ratings on MannKind Corporation (NASDAQ:MNKD) and most now have MNKD’s target price below $0.25. Sadly, at the end of the day, Mannkind developed a sought-after, ground-breaking drug but may have ignored, while developing it, the business economics required to create investor demand.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MNKD and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.