Biotechnology: Sell MannKind

I personally don’t understand investors who like betting on companies that lose money. Sure, I understand that the biotech business is all about research, development and a whole lot of patience. And sure, MannKind (MNKD ) has an insulin drug Afrezza that’s in Phase 3 trials, which are expected to be completed by the end of June.

But we’re talking about a company that’s generated just $3.2 million in revenue in the last 22 years while losing $2.1 billion (about $100 million per year) in the quest for the perfect drug.

Plus, its stock is up 185% year-to-date in anticipation of a product getting FDA approval. The company’s founder believes it could be one of the most important medical products in the history of medicine. That’s some potential to live up to.

I wouldn’t own this stock if someone had a gun to my head … nor should you.

http://investorplace.com/2013/05/2-stocks-to-buy-2-to-sell-in-big-pharma/