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Wall Street’s Week Ahead: MannKind Corporation (MNKD), Intercept Pharmaceuticals Inc (ICPT), Galena Biopharma Inc (GALE), Juno Therapeutics Inc (JUNO)

By Shira Gonen

Several pharmaceutical giants will be releasing earnings reports this week. Here’s what to watch for in reports from MannKind Corporation (NASDAQ:MNKD), Intercept Pharmaceuticals Inc (NASDAQ:ICPT), Galena Biopharma Inc (NASDAQ:GALE), and Juno Therapeutics Inc (NASDAQ:JUNO).

MannKind Corporation

MannKind will post third quarter earnings on Monday, November 9 after market close. Analysts expect the biopharmaceutical company to post a loss of ($0.06) per share, narrower than the ($0.09) loss per share the company posted in the same quarter of last year.

All eyes will be on Afrezza sales; the company’s breakthrough inhalable insulin for adults with diabetes. Analysts and investors were ready for the drug to fly off the shelves, though last week’s earnings report from Sanofi, a partner in producing the drug, revealed disappointing sales figures. Analysts believe Afrezza sales were weaker than expected due to the lack of targeted advertising and insurance coverage for the drug. However, some are optimistic that MannKind is now making a concerted effort to unroll advertising campaigns and work with insurance companies to gain coverage for the drug.

Out of the 2 analysts polled by TipRanks in the last 3 months, both are bearish on the biopharmaceutical company. The average 12-month price target between these 2 analysts is $1.25, marking a 56% potential downside from where shares last closed.

Intercept Pharmaceuticals Inc

Intercept Pharma will report third quarter earnings on Monday, November 9 before market open. Analysts estimate that the company will post a loss of ($2.74) per share compared to ($1.99) from the last quarter and revenues of $420,000, compared to $450,000 from last quarter.

The company is best known for treatments of chronic liver diseases such as fibrosis and NASH (nonalcoholic steatohepatitis). Last week, the company released disappointing results of its Phase 2 obeticholic acid (OCA) study. At the end of the 72 week study, results indicated that only the highest doses of OCA made any improvements in patients with NASH. Furthermore, the drug did not appear to have any anti-fibrosis benefits. Some analysts believe that without this particular benefit, the company will have difficulties positioning the drug as the disease progresses. Furthermore, this high dose produced an itching side effect that made some patients drop out of the study. The conclusive results indicated that this drug did not benefit NASH patients, although safe. Analysts are also looking forward to the FDA’s decision regarding OCA in PBC (primary biliary cirrhosis), expected by February.

According to the 5 analysts polled by TipRanks in the last 3 months, 3 gave Intercept Pharma a Buy rating, while 2 gave a Sell rating. The average 12-month price target between these 5 analysts is $321.20, marking an 82% upside from where shares last closed.

Galena Biopharma Inc

Galena Biopharma will post third quarter earnings on Monday, November 9 after market close. Analysts expect the company to post a loss per share of ($0.07), wider than the loss of ($0.05) the company posted in the same quarter of last year.

The small-cap biotech company brought two new therapies to market in the past two years: Abstral for cancer pain and Zuplenz for vomiting and nausea associated with cancer treatment. Analysts will be looking at these sales figures, as well as an update on NeuVax; the company’s lead pipeline candidate currently in Phase 3 testing to prevent recurrences of breast cancer. Lastly, analysts are eager to see where Galena’s cash position stands, since the company’s extensive pipeline requires significant cash burn.

All 3 analysts polled by TipRanks in the last 3 months are bullish on Galena; none are bearish or neutral. The only 12-month price target for the stock is $7, marking over a 300% potential upside from where shares last closed.

Juno Therapeutics Inc

Juno Therapeutics will report third quarter earnings on November 10 after market close. Analysts estimate that the company will post a loss of ($0.41) per share, compared to ($0.35) from the last quarter and revenues of $6.41 million, compared to $12.50 million from last quarter.

The biopharmaceutical company has recently made headlines with its successful trials of cancer-fighting immunotherapy treatments. Immunotherapy involves engineering the blood cells of a patient to battle the cancer and then infusing the cells back into the patient, strengthening the immune system. In small clinical trials, Juno’s blood cancer treatments had over a 90% success rate. Despite this achievement, analysts predict challenges for the company. Namely, the cost of manufacturing due to a lack of resources compared to its competitors and the construction of a new research facility for this particular drug. Other challenges include the high cost of immunotherapy, upwards of $450,000 per patient, as well as the long process of getting the treatment to market, which could take up to 10 years. Finally, the development time for the treatment currently takes 2 weeks per patient, which will prove troublesome if produced for a large number of people.

According to the 3 analysts polled by TipRanks in the last 3 months, 2 of them are bullish on the stock with 1 remaining on the sidelines. The average 12-month price target between these 3 analysts is $71.50, marking a 44% potential upside from where shares last closed.