MannKind Corporation (NASDAQ:MNKD) has been experiencing tough situations for several years. According to the market analysts at H.C. Wainwright, the company is still facing challenges despite making over 200% gains in the past one month. Last week, MannKind’s new management team was approved and is expected to turn things around for the company.
For the last two decades, MannKind spent over $2 billion in developing an approved inhaled and rapid-acting insulin therapy for treatment of diabetes known as Afrezza. Furthermore, the company partnered with Sanofi SA (ADR) which didn’t go well with the launch of Afrezza leading to the stock plunging 98% into a depression. With the new management, it’s possible that the Afrezza could soon gain momentum in the great insulin space and prove to the world its innovation merits.
The company could soon evolve from its current position to be a market leader in the industry as the firm plans accelerate its Afrezza growth to attain peak sales of up to $725 million across the US. In the recent conference call, the company convinced its investors that the revenue recognition will drastically increase in the first quarter of 2018. The strategies to be used in the change implementation were fully disclosed and the investors accepted to give the company a chance.
Furthermore, during the conference call, MannKind was confident that it would hit its targets for various reasons. For instance, the new management team expects that the visibility of the inventory amount in the retail section will be used to further refine the company’s recognized and deferred revenues. The projections were based on the sales units that were already shipped to the distributor and retailers.
Mannkind is shifting its original model where the revenues were recognized immediately the scripts were sold out to the consumers to a new strategy where the revenues are recognized once the company ships the products to the wholesalers. The company promised to give its investors the new performance metrics on guidance in the Q1 conference call which will determine the course of action for its investors.