Analyst: MannKind Afrezza Estimates Are Being Changed 'Based On Physician Feedback'

In a report issued Tuesday morning, Jefferies analyst Shaunak Deepak adjusted his estimates for MannKind Corporation (NASDAQ: MNKD)'s Afrezza based on physician feedback, in spite of early IMS scripts.

According to the analyst, the feedback has made the firm more confident in the long-term sales potential of the rapid acting inhaled insulin.

Timeline

Jefferies maintained its peak penetration estimates across all subgroups, but is now working under the assumption that Afrezza trajectory will take ten years, rather than six.

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"As a result of this more gradual sales ramp," they lowered their price target from $10 to $9, while reiterating a Buy rating.

Speaking With Experts

The research firm spoke with 16 endocrinologists, "none of whom had prescribed Afrezza as of early March. However, feedback suggested strong interest in the drug," so they spoke to two physicians at diabetes centers who had prescribed the drug six and four times, respectively.

"Collectively, the feedback suggested that Afrezza could be a desirable option as a first insulin or an alternative to injectable mealtime insulin, but that it will likely take additional time to educate physicians to use Afrezza to its full potential."