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.
The money has already been made on the MNKD trade. Investors should wait to see how the price action develops before jumping into shares.