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Post by rvc on Jan 5, 2016 11:22:33 GMT -5
MannKind Corp. shares plunged after Sanofi ended its collaboration on the development and sale of Afrezza, the latest inhaled insulin to struggle in the diabetes market. MannKind fell 34 percent to 96 cents at 10:02 a.m., a record intraday low. MannKind, which doggedly pursued development of Afrezza despite numerous setbacks, will take back responsibility for sales of the drug over the next three to six months and is exploring options for the device, the Valencia, California-based company said in a statement. The end of the collaboration will take place no later than July 4, MannKind said.
“The product never met even modest expectations, and we do not project Afrezza reaching even the lowest patient levels anticipated,” Sanofi said in an e-mailed statement. “Costs are projected to remain very high for a significant period of time.” While inhaled insulin offers diabetics an alternative to using needles, safety concerns and a lack of familiarity have held the therapies back from wide adoption. Pfizer Inc. pulled its inhaled product, Exubera, from the market in 2007 after diabetics shunned the device, citing its size, cost and safety concerns.
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Post by kc on Jan 5, 2016 11:25:24 GMT -5
Sounds like it was Mannkind who terminated the agreement.
Mannkind, Sanofi End Diabetes Drug Deal DOW JONES & COMPANY, INC. 10:05 AM ET 1/5/2016 Symbol Last Price Change MNKD 1.05down -0.4 (-27.59%) SNY 42.23down +0.03 (+0.07%) QUOTES AS OF 11:05:27 AM ET 01/05/2016 MannKind Corp. (MNKD) on Tuesday announced the termination of its licensing pact with Sanofi-Aventis in the U.S. for the development and sale of its inhaled diabetes medicine Afrezza and signaled that it might look to sell the drug.
Shares of the company tumbled 28% in early trading. Over the past three months, shares have dropped 67%, including Tuesday's decline.
MannKind (MNKD) said that it and Sanofi(SNY) would begin transition talks to return Afrezza to MannKind(MNKD) over the next three to six months, with the termination effective no later than July 4. As a result of squashed deal, MannKind(MNKD) said it is reviewing its strategic options for Afrezza. The evaluation of options typically include a full or partial sale.
The company struck the marketing deal with French drug company Sanofi(SNY) in August 2014. In its most recent quarterly earnings call with analysts and investors, then-Chief Executive Hakan Edstrom said MannKind(MNKD) was "disappointed with the growth of Afrezza sales during the first nine months of the year," pointing to insurance reimbursement issues and slow uptake. Mr. Edstrom stepped down as CEO in November.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires 01-05-161105ET Copyright (c) 2016 Dow Jones & Company, Inc.
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Post by ricguy on Jan 5, 2016 11:25:27 GMT -5
MannKind Corp. shares plunged after Sanofi ended its collaboration on the development and sale of Afrezza, the latest inhaled insulin to struggle in the diabetes market. MannKind fell 34 percent to 96 cents at 10:02 a.m., a record intraday low. MannKind, which doggedly pursued development of Afrezza despite numerous setbacks, will take back responsibility for sales of the drug over the next three to six months and is exploring options for the device, the Valencia, California-based company said in a statement. The end of the collaboration will take place no later than July 4, MannKind said. “The product never met even modest expectations, and we do not project Afrezza reaching even the lowest patient levels anticipated,” Sanofi said in an e-mailed statement. “Costs are projected to remain very high for a significant period of time.” While inhaled insulin offers diabetics an alternative to using needles, safety concerns and a lack of familiarity have held the therapies back from wide adoption. Pfizer Inc. pulled its inhaled product, Exubera, from the market in 2007 after diabetics shunned the device, citing its size, cost and safety concerns. Sounds like SNY is twisting the knife as they leave. What aholes.
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Post by silentknight on Jan 5, 2016 11:56:11 GMT -5
Good riddance. Look at the last year. We're better off without them.
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Post by mnkdnewb on Jan 5, 2016 12:01:24 GMT -5
MannKind Corp. shares plunged after Sanofi ended its collaboration on the development and sale of Afrezza, the latest inhaled insulin to struggle in the diabetes market. MannKind fell 34 percent to 96 cents at 10:02 a.m., a record intraday low. MannKind, which doggedly pursued development of Afrezza despite numerous setbacks, will take back responsibility for sales of the drug over the next three to six months and is exploring options for the device, the Valencia, California-based company said in a statement. The end of the collaboration will take place no later than July 4, MannKind said. “The product never met even modest expectations, and we do not project Afrezza reaching even the lowest patient levels anticipated,” Sanofi said in an e-mailed statement. “Costs are projected to remain very high for a significant period of time.” While inhaled insulin offers diabetics an alternative to using needles, safety concerns and a lack of familiarity have held the therapies back from wide adoption. Pfizer Inc. pulled its inhaled product, Exubera, from the market in 2007 after diabetics shunned the device, citing its size, cost and safety concerns. Sounds like SNY is twisting the knife as they leave. What aholes. i thought the same thing, ricguy. They are either not worried that someone will pick up this "fumble", or hoping to kick it while its down to try to keep another bp from taking it all the way. Mann do i hope MNKD has something big planned here...
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Post by bradleysbest on Jan 5, 2016 12:04:34 GMT -5
I hope Al & team were working behind the scenes the last couple of weeks formulating their plan of attack. However, if SNY was bleeding them for a cheap deal I sure hope Al sells cheap to a SNY competitor! F$#% SNY......
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Post by mindovermatter on Jan 5, 2016 12:10:53 GMT -5
I hope Al & team were working behind the scenes the last couple of weeks formulating their plan of attack. However, if SNY was bleeding them for a cheap deal I sure hope Al sells cheap to a SNY competitor! F$#% SNY...... At this point, investors better hope Al and Duane can pull something of significance from out of their behinds because the ship is taking on water fast.
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Post by trondisc on Jan 5, 2016 12:53:31 GMT -5
Price is truth and therefore MannKind Longs like me based upon today's PPS movement, are screwed into oblivion.
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Post by dudley on Jan 5, 2016 13:08:57 GMT -5
I have to admit I am completely stunned. I just never believed Sanofi would walk away from the best performing insulin in the history of diabetes, especially after pouring all the money into it that they did and really just out of the starting gate at 10 months into the launch. It seems to me that MNKD could just open an online store to sell Afrezza and mail it out - not sure how the insurance would work with that but since online is the future and that is where the Afrezza buzz is it would have to generate more sales than SNY was doing. Anyway, basically a crapshoot going forward but I have to (want to ) believe the combined value of Afrezza and TS is more than the measly $350 million market cap we are seeing now.
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Post by nylefty on Jan 5, 2016 13:19:54 GMT -5
I have to admit I am completely stunned. I just never believed Sanofi would walk away from the best performing insulin in the history of diabetes, especially after pouring all the money into it that they did and really just out of the starting gate at 10 months into the launch. It seems to me that MNKD could just open an online store to sell Afrezza and mail it out - not sure how the insurance would work with that but since online is the future and that is where the Afrezza buzz is it would have to generate more sales than SNY was doing. Anyway, basically a crapshoot going forward but I have to (want to ) believe the combined value of Afrezza and TS is more than the measly $350 million market cap we are seeing now. Pfizer is already selling Viagra online (orders are fulfilled by CVS). MannKind could do the same. www.viagra.com/savings-offer
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Post by Deleted on Jan 5, 2016 13:21:25 GMT -5
I have to admit I am completely stunned. I just never believed Sanofi would walk away from the best performing insulin in the history of diabetes, especially after pouring all the money into it that they did and really just out of the starting gate at 10 months into the launch. It seems to me that MNKD could just open an online store to sell Afrezza and mail it out - not sure how the insurance would work with that but since online is the future and that is where the Afrezza buzz is it would have to generate more sales than SNY was doing. Anyway, basically a crapshoot going forward but I have to (want to ) believe the combined value of Afrezza and TS is more than the measly $350 million market cap we are seeing now. Pfizer is already selling Viagra online (orders are fulfilled by CVS). MannKind could do the same. www.viagra.com/getting/how-to-get-a-prescriptionsell direct for $100 a month
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Post by liane on Jan 5, 2016 13:45:12 GMT -5
I have to admit I am completely stunned. I just never believed Sanofi would walk away from the best performing insulin in the history of diabetes, especially after pouring all the money into it that they did and really just out of the starting gate at 10 months into the launch. It seems to me that MNKD could just open an online store to sell Afrezza and mail it out - not sure how the insurance would work with that but since online is the future and that is where the Afrezza buzz is it would have to generate more sales than SNY was doing. Anyway, basically a crapshoot going forward but I have to (want to ) believe the combined value of Afrezza and TS is more than the measly $350 million market cap we are seeing now. Pfizer is already selling Viagra online (orders are fulfilled by CVS). MannKind could do the same. www.viagra.com/savings-offerBut at least people have already heard of Viagra
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Post by _neil on Jan 5, 2016 14:07:37 GMT -5
MY GOD!! I thought I was shocked at the news. More shocking is the optimism of people on this board. I am bitter for losing a lot of money on this PoS company but I cannot tell you how much I genuinely admire the delusional levels of positive thinking on display here. Lost Dead Weight? New CEO means new partnership?
I am sure a lot of the long term posters here have lost a lot more money than me (at least going by the suggestions of their stakes) but it must be a tiny percentage of their overall holdings. I cannot make any sense of the surprising lack of outrage at old Mann and the whole team otherwise.
I wish you well but this is just too much for me to process. I hope you are right in the end but the takeaways for me are these: 0. People don't care about pin pricks for drug delivery 1. Never believe user reviews for drugs. Other products aren't too complicated to understand 2. Never invest in companies where the management teams are lousy communicators 3. Never ever trust anyone with a company because of a great track record if he/she is over 60 and doesn't care about the money. They are out of touch with the modern world and nothing will cure it
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Post by harryx1 on Jan 5, 2016 15:11:36 GMT -5
Here's an internal email from SNY, if you haven't seen it yet...
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Post by patryn on Jan 5, 2016 15:36:44 GMT -5
There were certainly many hints that this might happen heading into the end of last year. The fact was SNY at some point gave up and was not motivated to sell Afrezza. Having a partner that is not motivated to sell your product and holds the keys to all marketing and sales is not an ideal situation. While the termination of the agreement seems like a major short term blow, the fact is that SNY basically paid MNKD about $200 million for a 1 year trial and then backed out. At this point, if MNKD can find a different partnership, the situation would actually be fantastic long term. The problem would be needing to try to go it alone if no partnership is found. If that were the case, MNKD would need to cut expenditures significantly while also needing to raise some capital. That would mean that it would either spin off Afrezza or turn into a purely manufacturing company until sales started catching up with expenses. Worst case, the fire sale of the entire company for the tax losses incurred alone is higher than the market cap of the entire company right now so I see significantly more upside than downside right now.
I continue to hold and add when I have spare funds and will continue to post and observe here, but I have been taking a break from looking day to day since the atmosphere has been fairly toxic as everyone is always in a foul mood when paper losses are incurred.
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