Shares of the biotech firm opened 93% higher after a U.S. Food and Drug Administration committee voted unanimously to recommend its Afrezza inhaled insulin to treat people with type 2 diabetes. All except one of the committee members voted to approve Afrezza for type 1 diabetes. The recommendations of the Endocrinologic and Metabolic Drug Advisory Committee weigh heavily in FDA decisions. The drug-approval board has until April 15 to finish its Afrezza review and decide on final approval.
On Wednesday, many investors on StockTwits.com said approval was now a foregone conclusion. Sentiment is 96% bullish, according to StockTwits' analytics.
$MNKD I'm still LONG!!! Approval is inevitable!!- Kyle Cooper (@Kylecooper95) Apr. 2 at 08:48 AM
$MNKD AdComm nearly unanimous voting to approve. Are you seriously doubting this gets approved?- Gary Evans (@wengang1) Apr. 2 at 08:50 AM
The U.S. insulin market is expected to hit $13.2 billion in 2017, according to research consultancy RNCOS. Cashtaggers believe that MannKind's drug could quickly become dominant as inhaled medicine would be preferable to regular injections for many diabetes sufferers.
$MNKD no needles is a life changer- NiteKnight (@NiteKnight) Apr. 2 at 08:50 AM
Investors relief was palpable on the StockTwits' stream. The stock had sunk 32% in the past five days as investors questioned whether the FDA committee would recommend the drug and if their bet on MannKind would become worthless. Afrezza is MannKind's main drug. It has little else in the pipeline.