RBC upgrades MannKind on royalty revenue, orphan lung pipeline

RBC Capital upgraded MannKind (MNKD) to Outperform from Sector Perform with a price target of $10, up from $7. The firm cites MannKind’s “diversifying dimensions of valuation support and upside potential” for the upgrade. RBC models Tyvaso DPI royalty revenue opportunity in idiopathic pulmonary fibrosis and progressive pulmonary fibrosis via advancing the company’s TETON programs with partner United Therapeutics (UTHR). It estimates up to $200M in royalties from IPF and PPF per year for MannKind, contributing to peak Tyvaso DPI royalty revenues of $300M in 2030, accounting for 48% of the stock’s valuation. RBC also sees additive value from MannKind’s emerging orphan lung pipeline.