Danbury Times:Mnkd to Partner w/ a Private Firm
Jan 14, 2016 19:07:21 GMT -5
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Post by lakers on Jan 14, 2016 19:07:21 GMT -5
www.newstimes.com/business/article/MannKind-announces-Afrezza-marketing-plans-6757354.php
MannKind announces Afrezza marketing plans
By Dirk Perrefort Updated 5:03 pm, Thursday, January 14, 2016
DANBURY — Shares of MannKind regained some of their losses this week after executives with the local pharmaceutical company attempted to ease investors’ fears and ensure that the company, and its drug Afrezza, aren’t going away.
Matt Pfeffer, who was appointed as the company’s chief executive officer earlier this week, told investors Wednesday at the J.P Morgan Health Care conference in California that MannKind (NASDAQ: MNKD) will be marketing Afrezza on its own, at least in the near term, while other partners are sought for the drug.
The stock has climbed more than 30 percent in the past two days after losing more than 50 percent of its value last week after Sanofi, a French pharmaceutical company, canceled its licensing agreement for Afrezza. Despite high hopes, sales of Afrezza, an inhalable form of insulin, have been sluggish since its launch in February with sales not expected to exceed $10 million during the past year.
Pfeffer said that while the company can’t afford to hire a large sales force, it is looking at less expensive way to market the drug including a social media campaign as well as the creation of an advisory council that can help education doctors and patients about Afrezza, which is manufactured at a facility on Casper Street that employs about 170 people.
He also cautioned, however, that a small sales force may be necessary and any costs associated with marketing Afrezza would likely be covered by cuts to other areas of the company’s operations.
The CEO said he was also optimistic about an unrelated venture by a private firm that is looking to create a diabetes care center business model that can provide in-house services to urgent care centers throughout the country. The venture, he said, is bullish on Afrezza and is planning to use the drug as its top treatment for the disorder. The first center is expected to open next month in New Jersey.
“They’ve coined the term ‘real time diabetes management, powered by Afrezza,’” Pfeffer said. “This is an excellent opportunity for us and it takes no money at all from MannKind.”
In the meantime, Pfeffer noted that discussions are already underway with prospective partners in various regions across the globe who were interested in Afrezza prior to the selection of Sanofi. Any partnerships, he said, could come with some upfront cash that could help the company’s financial situation.
With an estimated $60 million in cash, the company has enough money to operate into the second quarter. There could also be an announcement soon about a potential licensing partner for the Technosphere particle that is used by Afrezza to deliver the insulin into the lungs. Not only would such an agreement provide the company with needed cash, but, Pfeffer said, it would also “show that the technology is sustainable.”
He added that MannKind also has a building for sale in California that, if sold, could also help the cash-strapped company. The property, currently vacant, has been listed for around $23 million, he said.
“We are here to stay,” he told investors during a question-and-answer session at the conference. “We will not go quietly into the night.”
Pfeffer promised that MannKind executives will be more transparent in the months ahead about the future direction of the company. He added that he hopes to hold a conference call with investors before the earnings call scheduled for late February.
Share of MannKind traded at around 91 cents on Thursday, a rise of more than 33 percent after flirting with its 52-week low of 64 cents during trading on Monday.
dperrefort@newstimes.com
MannKind announces Afrezza marketing plans
By Dirk Perrefort Updated 5:03 pm, Thursday, January 14, 2016
DANBURY — Shares of MannKind regained some of their losses this week after executives with the local pharmaceutical company attempted to ease investors’ fears and ensure that the company, and its drug Afrezza, aren’t going away.
Matt Pfeffer, who was appointed as the company’s chief executive officer earlier this week, told investors Wednesday at the J.P Morgan Health Care conference in California that MannKind (NASDAQ: MNKD) will be marketing Afrezza on its own, at least in the near term, while other partners are sought for the drug.
The stock has climbed more than 30 percent in the past two days after losing more than 50 percent of its value last week after Sanofi, a French pharmaceutical company, canceled its licensing agreement for Afrezza. Despite high hopes, sales of Afrezza, an inhalable form of insulin, have been sluggish since its launch in February with sales not expected to exceed $10 million during the past year.
Pfeffer said that while the company can’t afford to hire a large sales force, it is looking at less expensive way to market the drug including a social media campaign as well as the creation of an advisory council that can help education doctors and patients about Afrezza, which is manufactured at a facility on Casper Street that employs about 170 people.
He also cautioned, however, that a small sales force may be necessary and any costs associated with marketing Afrezza would likely be covered by cuts to other areas of the company’s operations.
The CEO said he was also optimistic about an unrelated venture by a private firm that is looking to create a diabetes care center business model that can provide in-house services to urgent care centers throughout the country. The venture, he said, is bullish on Afrezza and is planning to use the drug as its top treatment for the disorder. The first center is expected to open next month in New Jersey.
“They’ve coined the term ‘real time diabetes management, powered by Afrezza,’” Pfeffer said. “This is an excellent opportunity for us and it takes no money at all from MannKind.”
In the meantime, Pfeffer noted that discussions are already underway with prospective partners in various regions across the globe who were interested in Afrezza prior to the selection of Sanofi. Any partnerships, he said, could come with some upfront cash that could help the company’s financial situation.
With an estimated $60 million in cash, the company has enough money to operate into the second quarter. There could also be an announcement soon about a potential licensing partner for the Technosphere particle that is used by Afrezza to deliver the insulin into the lungs. Not only would such an agreement provide the company with needed cash, but, Pfeffer said, it would also “show that the technology is sustainable.”
He added that MannKind also has a building for sale in California that, if sold, could also help the cash-strapped company. The property, currently vacant, has been listed for around $23 million, he said.
“We are here to stay,” he told investors during a question-and-answer session at the conference. “We will not go quietly into the night.”
Pfeffer promised that MannKind executives will be more transparent in the months ahead about the future direction of the company. He added that he hopes to hold a conference call with investors before the earnings call scheduled for late February.
Share of MannKind traded at around 91 cents on Thursday, a rise of more than 33 percent after flirting with its 52-week low of 64 cents during trading on Monday.
dperrefort@newstimes.com
