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Biotech Beat: Analysts Weigh In on MannKind Corporation (MNKD) and Synergy Pharmaceuticals Inc (SGYP)


Analysts are weighing in today on biotech company MannKind Corporation (NASDAQ:MNKD) and NY-based drug company Synergy Pharmaceuticals Inc (NASDAQ:SGYP). Here’s a quick roundup of today’s brokerage notes on MNKD and SGYP.

MannKind Corporation

MannKind announced today the pricing of previously announced private placement of its common shares to selected index funds in Israel. Over 13 million shares were priced at $2.61, equivalent to gross proceeds of $36.2 million, which is well below the original target of 50 million shares. MannKind shares reacted to the news, rising 18.92% to $2.64 on volume of 41.45 million shares, making it among the top winners today.

However, Piper Jaffray analyst Joshua Schimmer believes that this offering falls far short of what MannKind needs for long term solvency as it continues to burn cash and incur debt to Sanofi. The analyst also disappointed that the company is focusing more on creative financial solutions taking advantage of less sophisticated index funds to stave off insolvency as opposed to the traditional value creation routes that the more rigorous US market investors...