Afrezza’s Initial Sales Create Buying Opportunity

Afrezza’s Initial Sales Create Buying Opportunity

After a drug receives FDA approval, shareholders expect significant sales will soon follow. However, since obtaining an FDA approval does not remove all of the obstacles to sales, it is often the case that initial sales fall below expectations and the stock drops accordingly. Afrezza’s launch is about to give us just this kind of opportunity to buy MannKind.

Buying high potential biotech stocks after disappointing initial sales, has proven to be a sound strategy for more than one Marketocracy Master. Here’s why. At this point, the risk that the drug doesn’t work has been resolved and the risk that the FDA won’t grant approval has been eliminated. The risk has been reduced to marketing, a normal business risk with which lots of people have firsthand experience, while the upside is as big as ever.

Forbes readers share firsthand experiences to make better investment decisions. (Photo credit: istockphoto.com)

To understand how the launch is going, lets take a look at the normal cycle of doctor visits a diabetic has to plan for. Forbes reader Greg Moulthrop explains:

I see my Endocrinologist every 6 months, the average diabetic sees their Endocrinologist every 3-5 months. The reason for a 3-6 month cycle is because depending on how “controlled” your diabetes is, the longer you can wait to get essential lab tests done to track one’s A1C and other vital tests to organs and such. The process that I have to go through to get blood drawn to check my A1C and other lab tests to prepare for my Endocrinologist appointment, makes it difficult to get an “out-of-cycle” appointment to see my specialist. And, there are issues with insurance to seeing my specialist out-of-cycle. Personally, I can see my specialist up to 4 times a year, but I know of others that are allowed only 2 visits a year that are not considered a “critical need”.

For sales to take off like a rocket, either doctors or patients need to be motivated enough to schedule out-of-cycle appointments. Otherwise, it will take about 6 months for patients to see their doctors at least once during their normal cycle.

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Afrezza’s Initial Sales Create Buying Opportunity

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