The Story. It has been more than two weeks since MannKind Corporation (NASDAQ: MNKD) announced their partnership with the French Pharmaceutical Powerhouse, Sanofi (NYSE: SNY), to manufacture Afrezza. The stock took an initial dive and traded as low as $6.72 due to the market misconception regarding the deal with Sanofi. Nonetheless, MannKind has since appreciated slowly but steadily to close the August 27, 2014, trading session at $7.47 or up by 11 percent from what was arguably a bear raid.

Source: Google Finance

More Insights. Ringing true to Warren Buffett's teaching that time is on your side when you invest in a good stock, MannKind is starting to change Wall Street's views. A sharp Jefferies analyst, Shaunak Deepak, initiated his buy rating on MannKind with the price target of $10 per share. According to the Jefferies analyst,

"We believe Afrezza could address a major unmet need among patients poorly controlled with oral drugs that have not advanced to injectable agents. Surveys of insulin non-adherence suggest not insubstantial portion of patients reject insulin due to reluctance to take shots. Accounting for other factors that influence patient avoidance of insulin, we believe Afrezza could be used as a first-line insulin for almost 8% of type 2 patients failing oral drugs, worth $1.6 billion in peak U.S. sales. We believe Sanofi would promote Afrezza as a first-line insulin to gain and retain patients for its + $8 billion insulin franchise."

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