RBC Capital Downgrades Mannkind to Outperform, PT Reduced to $7

RBC Capital Downgrades Mannkind to Outperform, PT Reduced to $7

On July 02, 2025, RBC Capital downgraded MannKind Corporation (NASDAQ: MNKD) to "Outperform" from "Overweight," reducing the price target to $7. The downgrade comes amidst a series of strategic moves by MannKind, including a significant financing agreement with Blackstone [1].

MannKind and funds managed by Blackstone announced a strategic financing agreement on July 16, 2025, providing MannKind with up to $500 million in non-dilutive capital. The agreement aims to bolster MannKind's short- and long-term growth strategies and enhance its operating flexibility [1]. This financing deal is expected to complement MannKind's strong cash position, with an initial $75 million in cash received at closing.

RBC Capital's downgrade follows a cautious outlook by H.C. Wainwright, which assumed coverage of MannKind with a 'Buy' rating and a $9 price target on July 16, 2025. H.C. Wainwright expects Tyvaso DPI to be a key driver of MannKind’s valuation, while maintaining a cautious outlook on the Afreezza product line [2].

MannKind, which develops and commercializes inhaled therapeutic products for patients with endocrine and orphan lung diseases, has seen strong growth, with a 32.5% increase over the last 12 months. The company's primary product, Afrezza, is an inhaled ultra-rapid-acting insulin for diabetes. However, RBC Capital's revised outlook reflects a more conservative view on the company's prospects, potentially influenced by the competitive landscape and regulatory uncertainties.

References:
[1] https://seekingalpha.com/news/4479756-mannkind-secures-up-to-500m-strategic-financing-agreement-with-blackstone
[2] https://finance.yahoo.com/news/h-c-wainwright-affirms-mannkind-104656188.html