This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MannKind, Vical, GTx: Investors Predict Pivotal Clinical Trial Results

BOSTON (TheStreet) -- Investor sentiment favors MannKind (MNKD) and runs against Vical (VICL) and GTx (GTXI) as each company nears the reporting of results from soon-to-be-completed pivotal clinical trials.

On Friday, I conducted a survey -- promoted via Twitter -- asking investors to predict the outcomes of each company's phase III clinical trials. I wasn't looking for in-depth analysis, just a simple prediction: Would the trial results be positive or negative? A total of 348 people responded to the survey.

I also reached out separately to a dozen institutional healthcare investors, asking them the same question about the MannKind, Vical and GTx studies.

MannKind

Two phase III studies -- one each in type 1 and type 2 diabetics -- of MannKind's rapid-acting, inhaled insulin Afrezza are underway. The company says results will be reported this month.

Just over 50 percent of the investors predict positive results from the Afrezza trials, according to my reader survey. Thirty-one percent of respondents say the Afrezza studies will fail, while 19 percent either didn't know enough about the trials or didn't care to make a prediction. I voted along with the majority, predicting positive results.

Here's how the survey results look in a pie chart:

Of the 12 professional healthcare investors polled separately 10, or 83 percent, predicted a positive outcome from the MannKind studies. The other two investors chose not to make a prediction. [None predicted failure.]

The bullish sentiment picked up my surveys makes sense when you consider MannKind's stock price has been a tear for the past six months. If this is a run-up into expected positive results, we could see profit taking or selling on the news once Afrezza results are announced. MNKD ChartMNKD data by YCharts

MannKind is also the seventh-most shorted stock in the bio-pharma sector, with just under 29 percent of shares sold short as a percentage of the float. The MannKind short thesis is less about the risk of failed clinical trials and more focused on significant doubts about the company's ability to 1) get Afrezza approved; 2) find a marketing partner; and 3) generate meaningful revenue.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,090.19 +3.56 0.02%
S&P 500 1,988.97 +1.96 0.10%
NASDAQ 4,470.6670 -3.03 -0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs