- MannKind earns royalties from United Therapeutics’ Tyvaso DPI whose active component is also treprostinil.
- H.C. Wainwright analyst Brandon Folkes said that "at face value" the new product introduces uncertainty around the long-term durability of Tyvaso DPI royalties.
- However, the analyst also noted that the selloff "may be discounting a worst-case scenario before there is clarity on the role a DPI formulation could play in the long term broader franchise."
Shares of MannKind Corp. (MNKD) slipped 38% on Wednesday after its partner United Therapeutics Corp. (UTHR) unveiled a new product called Tresmi, which could potentially replace the Tyvaso DPI dry powder inhaler it manufactures.
Tresmi, as per MannKind, is “a proprietary drug device formulation of treprostinil into a soft mist inhaler.” The company further termed it a “category killer product.”
“It will reduce the number one side effect of dry powder inhalers, which is coughing, by up to 90%, based on the human studies we've done so far. We intend to file for its approval in PAH and ILD this year and commercially launch it next year. The days of people discontinuing their PAH (Pulmonary Arterial Hypertension) or ILD (Interstitial lung disease) therapy due to cough will be over,” United Therapeutics CEO Martine Rothblatt said.
UTHR shares rallied 9% at the time of writing.
How Will Tresmi Impact MannKind?
Mannkind earns royalties from United Therapeutics’ Tyvaso DPI, whose active component is also treprostinil. Tyvaso DPI is developed and marketed by United Therapeutics in collaboration with MannKind.
MannKind manufactures the inhalation powder, approved by the U.S. Food and Drug Administration in 2022 for PAH and PH-ILD (Pulmonary Hypertension associated with Interstitial Lung Disease), using its Technosphere technology at its Connecticut facility.
MannKind previously attributed the 26% increase in its revenues for the first nine months of 2025 to an increase in royalties earned on increased net sales of Tyvaso DPI, among other factors.
Analyst Take
H.C. Wainwright analyst Brandon Folkes said that "at face value" the new product introduces uncertainty around the long-term durability of Tyvaso DPI royalties, according to TheFly.
While the magnitude of the selloff reflects "legitimate concerns" about franchise migration risk, the firm sees the selloff "potentially resetting the value proposition" and believes the reaction "may be discounting a worst-case scenario before there is clarity on the role a DPI formulation could play in the long term broader franchise."
The analyst has a ‘Buy’ rating and $11 price target on the shares.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around MNKD and UTHR stock rose from ‘bearish’ to ‘bullish’ territory over the past 24 hours.
UTHR shares have gained 45% over the past 12 months, while MNKD shares have fallen 38%.
Read More: Why Did ODD Shares Tumble More Than 50% Today?
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