MNKD Stock Records Biggest Single-Day Gains In Over 5 Years, Breaches A Key Technical Milestone – What’s Driving This Rally?

• The company is developing the drug in partnership with United Therapeutics.
• United Therapeutics will lead development and commercialization, while MannKind will support formulation and supply.
• MannKind could earn up to $35 million in milestone payments.

Shares of MannKind Corp. (MNKD) jumped more than 30% on Wednesday, drawing sharp attention after the company highlighted progress on an inhaled therapy developed with United Therapeutics (UTHR) for pulmonary arterial hypertension.

MNKD shares posted their biggest single-day gains since Feb. 3, 2021, while also breaking past its 100-day moving average (100-DMA) for the first time in more than two months.

Source: TradingView

Meanwhile, UTHR shares were up 2.5% at the time of writing.

MNKD’s Inhalation Drug Could Allow For Fewer Dosing

MannKind said it is developing a dry powder inhalation (DPI) version of Ralinepag, known as Ralinepag DPI, an investigational drug with a long half-life, which could allow for less frequent dosing.

The drug has already shown strong potential after its oral form met the primary endpoint in a Phase 3 study for pulmonary arterial hypertension (PAH).

The partners are developing an inhaled version of the therapy, aiming to enable a convenient once-daily dosing. Initial work includes formulation development, followed by non-clinical testing and a Phase 1 study in healthy volunteers.

MNKD’s Royalty Deal With UTHR

United Therapeutics will lead development and commercialization, while MannKind will support formulation and supply. The therapy is also being explored for other lung-related conditions.

MannKind recently received a $5 million payment from United Therapeutics for the drug development, and could earn up to $35 million in milestone payments, along with royalties on future sales.

Retail Sees Gains Over Next Two Months

Retail sentiment for MNKD on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier, while message volumes remained ‘high.’

One user sees a lot more room for MNKD to rally over the next two months.

Another user highlighted MannKind’s pipeline.

The stock has declined nearly 36% so far this year.

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