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MannKind Doubles on FDA News, Could Drive Short Covering in Biotech Sector
After a big slump, biotech is having a great week.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

MannKind (NASDAQ:MNKD) is up over 100% this morning to $8.14 after the US FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted to recommend its Afrezza inhaled insulin.

FDA reviewers had previously expressed concerns over side effects including risk of bronchial spasms and lung infections.

On Monday, I discussed biotech making a stand following a 20% decline in SPDR S&P Biotech ETF (NYSEARCA:XBI), and this is the second piece of unexpected good news in two days. Big boy Gilead Sciences (NASDAQ:GILD) popped on a bullish Wall Street Journal article yesterday and is extending its rally in early trading today.

This MannKind development adds another positive element because it could drive short covering.

Small- and mid-cap biotechs had already been waking up the past few days. Check out these charts of Arena Pharmaceuticals (NASDAQ:ARNA), Acorda Therapeutics (NASDAQ:ACOR), and Insmed (NASDAQ:INSM).







If shorts are now seeing MannKind double overnight and the sector pop this morning, they're likely to lock in whatever gains they have left.

Plus, as shown Monday, we just saw big outflows in health care/biotech ETFs -- are we about to see inflows on expectations of a rebound? I have no current exposure to the group as I closed my long Gilead trade yesterday, but that may change very soon.

Editor's Note: Want to help improve the Minyanville experience? Take our reader poll and enter to win a $100 Amazon.com gift card.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
MannKind Doubles on FDA News, Could Drive Short Covering in Biotech Sector
After a big slump, biotech is having a great week.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

MannKind (NASDAQ:MNKD) is up over 100% this morning to $8.14 after the US FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted to recommend its Afrezza inhaled insulin.

FDA reviewers had previously expressed concerns over side effects including risk of bronchial spasms and lung infections.

On Monday, I discussed biotech making a stand following a 20% decline in SPDR S&P Biotech ETF (NYSEARCA:XBI), and this is the second piece of unexpected good news in two days. Big boy Gilead Sciences (NASDAQ:GILD) popped on a bullish Wall Street Journal article yesterday and is extending its rally in early trading today.

This MannKind development adds another positive element because it could drive short covering.

Small- and mid-cap biotechs had already been waking up the past few days. Check out these charts of Arena Pharmaceuticals (NASDAQ:ARNA), Acorda Therapeutics (NASDAQ:ACOR), and Insmed (NASDAQ:INSM).







If shorts are now seeing MannKind double overnight and the sector pop this morning, they're likely to lock in whatever gains they have left.

Plus, as shown Monday, we just saw big outflows in health care/biotech ETFs -- are we about to see inflows on expectations of a rebound? I have no current exposure to the group as I closed my long Gilead trade yesterday, but that may change very soon.

Editor's Note: Want to help improve the Minyanville experience? Take our reader poll and enter to win a $100 Amazon.com gift card.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
MannKind Doubles on FDA News, Could Drive Short Covering in Biotech Sector
After a big slump, biotech is having a great week.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

MannKind (NASDAQ:MNKD) is up over 100% this morning to $8.14 after the US FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted to recommend its Afrezza inhaled insulin.

FDA reviewers had previously expressed concerns over side effects including risk of bronchial spasms and lung infections.

On Monday, I discussed biotech making a stand following a 20% decline in SPDR S&P Biotech ETF (NYSEARCA:XBI), and this is the second piece of unexpected good news in two days. Big boy Gilead Sciences (NASDAQ:GILD) popped on a bullish Wall Street Journal article yesterday and is extending its rally in early trading today.

This MannKind development adds another positive element because it could drive short covering.

Small- and mid-cap biotechs had already been waking up the past few days. Check out these charts of Arena Pharmaceuticals (NASDAQ:ARNA), Acorda Therapeutics (NASDAQ:ACOR), and Insmed (NASDAQ:INSM).







If shorts are now seeing MannKind double overnight and the sector pop this morning, they're likely to lock in whatever gains they have left.

Plus, as shown Monday, we just saw big outflows in health care/biotech ETFs -- are we about to see inflows on expectations of a rebound? I have no current exposure to the group as I closed my long Gilead trade yesterday, but that may change very soon.

Editor's Note: Want to help improve the Minyanville experience? Take our reader poll and enter to win a $100 Amazon.com gift card.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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