Nearest Resistance: $8.70
Nearest Support: $7
Catalyst: FDA Committee Approval
Small-cap biopharmaceutical stock MannKind (MNKD) is grabbing the headlines this afternoon, up more than 78% following a positive outcome from the FDA penal reviewing its Afrezza diabetes device. The committee voted 13 to 1 in favor of allowing MannKind to market the device to patients with type 1 diabetes and voted unanimously to allow the firm to market Afrezza to type 2 patients. The decision gapped shares up hard this morning, but, as I said on Monday, the event risk made the decision hard to trade without being exposed to significant risk.
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The money has already been made on the MNKD trade. Investors should wait to see how the price action develops before jumping into shares.