Giant Leap for MannKind Stock

Pharma stock soars 75 percent with new diabetes drug.
3:00 | 04/02/14

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

More information on this video
Enhanced full screen
Explore related content
Comments
Related Extras
Related Videos
Video Transcript
Transcript for Giant Leap for MannKind Stock
I'm Michelle and new York and the financial markets close. This is a second this is stories -- Today we're looking that mankind -- a small pharmaceutical company which had a big day. After a panel recommended the FDA approve its inhaled insulin diabetes drug. I'm joined now by -- -- toll from Yahoo! finance might how well the -- -- do today. Very well -- more than 70%. Near the close and actually had been up. By as much as 80% at its highs today so to a little bit more than seven dollars a share he really does show that this positive ruling by an advisory committee of the FDA. On their insulin drug was actually somewhat -- expected by Wall Street people thought maybe they weren't gonna get green light -- -- for this so obviously Wall Street is celebrating 70% that's a huge number. It really is is so a lot of people on Wall Street thought the stock could potentially be worthless this is the way it is with a lot of Biotech companies it's make or break for their big product they've been working on the chart for seven years. Finally got a little bit of good news and not invest really piled in what I will say -- -- -- the stock has been higher in the last -- been closer to ten dollars vs the seven right now so clearly the the hopes have kind of waxed and -- for this product over the years let's take a look at the two day rise and -- stock. What those special about it for us. Interesting so it's an -- -- version of insulin four folks with type two diabetes actually type one and to protect -- was a big market out there are so many people. -- really plagued by that. And so the advantages obviously would not have to have insulin injections naturally people are not -- happy usually when they have to get daily injections you inhale it threw a special device that of that down mankind makes and essentially that would give you your insulin booster controlling your insulin through a day. So this has been kind of -- holy -- for the industry for many many years to try to get this going. It's unclear exactly how many customers -- patients would actually help be benefited by this or how many will buy into this version of it but it's definitely good news for right now because a lot of folks thought it was going to be doomed. And investors of course liking the company's CEO billionaire named Alfred Mann who. -- money today himself. He's got a very interesting story -- -- What he does he's he's actually been behind the start of more than fifteen companies over the years he made his initial fortune in the aerospace business one of his companies is now part of Boeing. -- he's now actually very big in -- medical area this is one of his key investments he owns 40% of the company. He's a billionaire from this company alone and was already billionaire before it and obviously his his personal fortune is up huge today as the stock shot higher. OK so this is the first hurdle what's next for -- president should be approved in the United States how much money might it generate for mankind. -- -- so the the full FDA has to approve this is an advisory panel usually the FDA as a whole. Follows that advice that's an April so if it gets a green light there. It's still had -- -- to persuade. Doctors to start prescribing you still have to see what the labeling and instructions are on a lot of people think though that in the next couple of years -- could be worth more than half a billion dollars a year in revenue. To mankind and you know if you look at some comparable drugs out there for this -- treatment. It's two to three billion dollars a year by some -- -- competitive -- so that's the theoretical. Kind of bonanza you can be looking for but I will point out though a lot of people think doctors will be slow to take this to their customers to their patients they're -- it's not sure it's untested in the real world so we can't really bank all those revenues just yet. One to watch -- -- toll of Yahoo! finance -- for joining us. -- -- course have been watching stories stocks they would abcnews.com. For your latest headlines I'm Michelle Franzen a New York.

This transcript has been automatically generated and may not be 100% accurate.

{"id":23165075,"title":"Giant Leap for MannKind Stock","duration":"3:00","description":"Pharma stock soars 75 percent with new diabetes drug.","section":"Health","mediaType":"Default"}