BIOMM WILL START DISTRIBUTION OF AFREZZA

[mango]

Got this from Harry’s IG post


BIOMM INICIARÁ DISTRIBUIÇÃO DE INSULINA HUMANA INALÁVEL EM PÓ

BIOMM WILL START DISTRIBUTION OF INHALABLE HUMAN INSULIN POWDER

Published 1/7/2020


Biomm, located in the city of Nova Lima, in the Belo Horizonte Metropolitan Region (RMBH), has announced, in a relevant fact, that it will start selling and distributing Afrezza®, throughout the country, next week. Inhalable human insulin powder. Sought to give more details on the subject, the company chose not to give interview.

According to the material sent by the company, the commercial activities begin with the receipt of the letter from the CMED, which approves Afrezza® factory price registration.

The product, certified by the National Health Surveillance Agency (Anvisa) in June, as previously reported by TRADE DIARY, is imported from the United States through a partnership with MannKind Corporation.

“Until then, insulin was only injectable in Brazil. This will be the first inhalable. It is a product designed for the practical use of patients: the device is very small and fits in the palm of the hand, so it is very discreet and does not cause embarrassment in use ”, said at the time, the brand CEO, Heraldo Marchezini.

The company - On its website, Biomm states that the Nova Lima factory “has the latest in biomedical production and was built with the aim of giving Brazil productive independence from high-tech medicines, such as insulin analogues and other biological medicines, ”he says. “We want more and more people to have access to the best treatments,” says the organization.

According to information that was previously published, the construction of the company's plant in Nova Lima had investments of around R $ 540 million. For the construction of the platform, the company had financing lines from the National Bank for Economic and Social Development (BNDES), the Minas Gerais Development Bank (BDMG), the Minas Gerais State Research Support Foundation (Fapemig). and the Brazilian Agency of Innovation (Finep).

The branded insulin plant is 30,000 square meters and has a production capacity of 20 million vials of recombinant human insulin per year.

diariodocomercio.com.br/economia/biomm-vai-iniciar-vendas-de-insulina-inalavel-em-po-no-pais/

[Omega]

BIOMM Staok has doubled in the past month.
Its now at $18+ today.

[agedhippie]

Jan 8, 2020 15:25:18 GMT -5 Omega said:

BIOMM Staok has doubled in the past month.
Its now at $18+ today.

That's because they recapitalized via an investment from the regional development bank. Pure co-incidence that the CEO of the development bank sits on their board.

[mango]

Jan 8, 2020 15:28:34 GMT -5 agedhippie said:

Jan 8, 2020 15:25:18 GMT -5 Omega said:

BIOMM Staok has doubled in the past month.
Its now at $18+ today.

That's because they recapitalized via an investment from the regional development bank. Pure co-incidence that the CEO of the development bank sits on their board.

Unless they did something illegal, who cares?

What are you insinuating?

[brotherm1]

Why doesn’t MNKD have any big bankers on it’s board?

[agedhippie]

Jan 8, 2020 15:39:17 GMT -5 mango said:

Jan 8, 2020 15:28:34 GMT -5 agedhippie said:

That's because they recapitalized via an investment from the regional development bank. Pure co-incidence that the CEO of the development bank sits on their board.

Unless they did something illegal, who cares?

What are you insinuating?

I'm 'insinuating' the same as brotherm1. Why don't Mannkind have anyone like this on the board?

[rfogel]

How does the Biomm deal work? Is Mannkind simply a wholesaler selling to Biomm or does it get any sort of royalty as well?

[agedhippie]

Jan 10, 2020 10:16:08 GMT -5 rfogel said:

How does the Biomm deal work? Is Mannkind simply a wholesaler selling to Biomm or does it get any sort of royalty as well?

BIOMM bulk buy from Mannkind and then resell it to the pharmacies. There are no returns to Mannkind as would be the case with a regular distributor if that is what you are asking. Once it's shipped it's to BIOMM it is off Mannkind's hands.

[mnholdem]

Jan 10, 2020 10:16:08 GMT -5 rfogel said:

How does the Biomm deal work? Is Mannkind simply a wholesaler selling to Biomm or does it get any sort of royalty as well?

Personally, I think that shareholders have a right to know the answer to this question.

[agedhippie]

Jan 10, 2020 16:11:46 GMT -5 mnholdem said:

Jan 10, 2020 10:16:08 GMT -5 rfogel said:

How does the Biomm deal work? Is Mannkind simply a wholesaler selling to Biomm or does it get any sort of royalty as well?

Personally, I think that shareholders have a right to know the answer to this question.

The bit I am interested in is if there are minimum commitments.

[peppy]

Jan 10, 2020 16:23:43 GMT -5 agedhippie said:

Jan 10, 2020 16:11:46 GMT -5 mnholdem said:

Personally, I think that shareholders have a right to know the answer to this question.

The bit I am interested in is if there are minimum commitments.

Any chance the first shipment at this prices were samples?
what did MNKD say $700,000 dollars?

[cretin11]

Jan 10, 2020 16:23:43 GMT -5 agedhippie said:

Jan 10, 2020 16:11:46 GMT -5 mnholdem said:

Personally, I think that shareholders have a right to know the answer to this question.

The bit I am interested in is if there are minimum commitments.

Do we have any idea what price BIOMM paid (per unit or some other way to measure)?

And regarding the pricing info that came out recently, do we think that has any bearing on what BIOMM pays MNKD or is that negotiated separately?  I would think it has to have some bearing on it, but then again the first shipment was already delivered before pricing info was public.

[buyitonsale]

This works the same as being a distributor in USA, except that Biomm is an exclusive distributor in Brazil.

Biomm also is responsible and controls all marketing and regulatory activity in exchange for this exclusivity.

[agedhippie]

Jan 10, 2020 22:28:09 GMT -5 buyitonsale said:

This works the same as being a distributor in USA, except that Biomm is an exclusive distributor in Brazil.

Biomm also is responsible and controls all marketing and regulatory activity in exchange for this exclusivity.

It is not really the same as a US distributor. As far as I can see in the US Mannkind ship inventory to the distributor who pays for the stock, warehouses it and sells it to the pharmacy on demand. The distributor additionally bills Mannkind for the service (this shows in the accounts in the fees and rebates line). If goods are getting near expiry the distributor ships them back and gets a chargeback.

From what has been said BIOMM takes the stock landed on a final sale basis and then resells to the pharmacies. However; they cannot return inventory (expiring stock is their problem, not Mannkind's now), and they are not paid a fee. I am not sure who pays for the shipping to Brazil.

[matt]

Jan 10, 2020 16:53:08 GMT -5 cretin11 said:

Do we have any idea what price BIOMM paid (per unit or some other way to measure)?

That was not disclosed.  In the industry the gross margin passed to the distributor is directly tied to the level of risk assumed by the distributor and the quantity and quality of the services provided.  I have see distribution agreements that were little more than light warehousing and trucking agreements (no sales and marketing effort) that went for as little as 4% of sales, and I have seen full service agreements that included pretty much everything but the manufacturing that gave 45% of sales to the distributor.  As each deal is structured somewhat differently, it truly depends on the contract.

That said, there are few agreements where the local distributor agrees to handle all selling, marketing, promotion, and regulatory activities for less than about 30%.  Typically when introducing a new specialty product the operating expenses are 35-40% in the first year or two, declining as the product gets traction in the market.  While insulin is not your typical specialty product, given the high cost Afrezza is not garden variety injectable insulin either so the required marketing expense should be more similar to a high-cost specialty product than to a generic drug.  On balance, Biomm is probably getting 30% of sales (plus or minus 5%) or else they have set themselves up to fail.

To address another question above, distributors do not pay royalties.  Royalties are paid when another entity uses proprietary technology to manufacture a product, and that is not what Biomm is doing.  In manufacturer-distributor relationship the manufacturer simply recovers their profit from the sale of goods.  There can be other incentives built into the deal (i.e. a sliding price scale that increases or declines with volume) but that is less typical for distributors since their costs are mostly variable, and sometimes the manufacturer will eat some of the launch cost either directly or by discounts on the first few shipments.  All of those arrangements are proprietary and rarely get disclosed.