Wells Fargo Lowers FY12 Estimates on MannKind (MNKD); Cash Burn Slowed, But Critical Data Not Out Til '13

Wells Fargo maintains a 'Market Perform' on MannKind (NASDAQ: MNKD) price target range $2-$3.

Analyst, Michael Tong, said, "Sale of 31.25MM shares to The Mann Group in exchange for debt cancellation ($77.2MM), while dilutive, should help to modestly reduce MNKD's near-term cash burn. Slightly widening 2012E loss per share to $0.97 (from loss of $0.95) on slightly lower share count, as we previously estimated mid-Q2 closing of this share sale."

"We believe in the commercial viability of Afrezza, especially if its close mimic to the natural insulin response can be replicated in actual everyday clinical usage. However, with data readout from the MKC-171/175 studies not due to occur until early 2013, we find meaningful near-term share price appreciation unlikely."

For an analyst ratings summary and ratings history on MannKind click here. For more ratings news on MannKind click here.

Shares of MannKind closed at $2.75 yesterday.

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