MannKind Rating, Price Target Are Cut by Goldman on Slow Afrezza Launch
NEW YORK (TheStreet) -- MannKind (MNKD) - Get Report was downgraded to a "sell" rating from "neutral" by Goldman Sachs on Tuesday, with the analyst citing the slow commercial launch of the inhaled insulin Afrezza coupled with growing downward pricing pressure for all diabetes products.
Goldman cut its price target on MannKind to $3 a share from $6.
MannKind shares were down 8% to $6.10 in premarket trading on Tuesday.
"Diabetes market dynamics have deteriorated as reflected by growing pressure on prices and slow launch uptakes -- both of which have been unfavorably influenced by payors as they leverage their formularies," wrote Goldman analyst Jay Olson in Tuesday's research note.
The downward pricing pressure exacted by insurers is likely to force Sanofi (SNY) - Get Report, which is seling Afrezza in the U.S. under a partnership with MannKind, to offer discounts up to 40% off the product's list price -- double what Goldman originally expected, Olson wrote. The commercial launch of Afrezza -- about one month old -- "has also fallen short of our expectations," according to Olson.
Goldman slashed its 2025 sales forecast for Afrezza to $1 billion from $2 billion.
On Monday, Afrezza was give a lackluster review -- "modestly effective" -- from The Medical Letter, an independent, non-profit organization which evaluates prescription drugs.
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