NEW YORK (TheStreet) -- MannKind's (MNKD) stock is soaring ahead of the FDA's July 15 decision on whether to approve the biotech company's inhaled insulin drug Afrezza.The stock was up more than 7% today to $10.19 as of 11:45 a.m. Wednesday.
But even the biotech bulls on StockTwits.com are uneasy buying in to a company with a near $3.8 billion market cap and no revenue.
? Huy Thai (@thai0911) Jun. 4 at 10:24 AM
Still, sentiment on the stock is 96% bullish according to StockTwits analytics.
The reason is that the Afrezza approval is believed to be a foregone conclusion. In April, an FDA panel overwhelmingly recommended the drug to treat patients with either type of diabetes, despite some concerns about lung complications from inhaling insulin.
MannKind shares have climbed 151% since April 1, the day before the Endocrinologic and Metabolic Drug Advisory Committee announced its recommendation.
$MNKD if every day goes up with 50 cents, we'll end up around 40 till approval day..? Ozgur (@Kafkafnl) Jun. 4 at 10:49 AM
What gives investors some pause about buying in at current levels isn't the risk that the drug will be rejected, but whether the company can successfully market and sell the drug quickly enough to justify its valuation. If there are any signs that the company, while capable of developing a blockbuster drug, can't sell it effectively, then shareholders could sell.
$MNKD Don't want to stop the bull rush but this stock IS up like 50% in past month with approval anticipation. How higher can it go post?? KJ (@saskatrade) Jun. 4 at 10:13 AM
Of course, many on StockTwits believe that MannKind will never have to really sell Afrezza. They are banking that the company will be purchased by a pharmaceutical giant shortly after the drug is approved.
So who might buy MannKind?