MannKind Corporation (NASDAQ:MNKD) Increasingly Losing Ground

[[tagnumber 0]][[tagnumber 1]]When we talk about biotech stocks, we tend to assume two basic rules that really impact them. Number one: they are generally volatile, and number two: just as an FDA approval can push them into the stratosphere, an FDA rejection can certainly send them down the drain. However, other factors can also be the reason for bad chart performance every now and again.[[tagnumber 2]] [[tagnumber 0]]Let‘s take MannKind Corporation (NASDAQ:MNKD) for example. The biotech company focused on developing diabetes–related therapeutic solutions did get official clearance by the FDA to market its AFREZZA, a rapid–acting inhaled insulin in late–June 2014. What is more, it sealed an agreement with Sanofi–Aventis U.S. LLC for the subsequent marketing and distribution of the drug. Last but not least, AFREZZA became fully–eligible to be prescribed in drugstores nationwide in February 2015. Needless to say, the latter pushed MNKD to 52–week high of $7.88 reached on Feb. 10, 2015. What is not right with the stock, however, is that it would never reach this value on the charts again, at least not yet.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]On the contrary, MNKD has been digging deeper and deeper and eventually hit a few 52–week lows with the last one occurring yesterday when MNKD shares were briefly traded at $2.88 before closing the session a tad higher at $2.93 per share. Two hours into today‘s session, the situation does not seem to be any better as MNKD is currently fluctuating between $2.90 and $3.00 per share on less–than–average volume levels. All in all, MNKD shares have lost more than 60% of their market value over the last 8 months.[[tagnumber 2]] [[tagnumber 0]]As a result of this stark depreciation of the stock‘s value, investors have gradually started to bet against the stock, thus pushing the short interest in MannKind from 90 million (as of Feb. 27) to 126 million (a/o Sept. 30), which transforms into a 25–days–to–cover ratio. Needless to say, shorters are fairly prevalent among the traders interested in MNKD. So does the company seem capable of beating the odds and buck the negative trend?[[tagnumber 2]] [[tagnumber 0]]The answer to this question has so far remained contingent upon the revenue streams realized from the sale of the company‘s AFREZZA drug. Even though it became fully accessible in February, Mannkind‘s Q2 report for the period ended Jun. 30, 2015 shows zero revenue. Combined with the fact that it will have to give out a hefty proportion of any future revenue streams to Sanofi, , overcoming an average quarterly loss of $28 million might prove to be a challenging task. If analysts‘ opinion is anything to go by, Mannkind is not expected to continue to lose money through December 2017 before finally breaking even and going in the black in 2018. Yet, what will happen with the stock until the business turns profitable? At this stage, there seems to be little incentive for shorters to change their minds about MNKD.[[tagnumber 2]]