Receptor Life Sciences Comes To MannKind Corporation Rescued
Jan 31, 2016 12:44:04 GMT -5
via mobile
Post by lakers on Jan 31, 2016 12:44:04 GMT -5
Receptor Life Sciences Comes To MannKind Corporation Rescued After Failed Deal
MannKind Corporation (NASDAQ:MNKD) stock sky-rocketed yesterday, following an insight into the company’s selling block.
A Reuters report cited unnamed sources, asserting that the drug maker is looking for a buyer. The very likely reason is the termination of the deal between itself and Sanofi SA (ADR), a marketing partner for the former's Afrezza drug.
It suggested Mannkind will get the selling rights back over the next three to six months, with a finalized deal no later than July 4.
CEO Matt Pfeffer was not available to comment.
In addition to the setback in the sales of Afrezza (human insulin), the company has faced other problems. Its chief executive resigned in November 2015, compelling former CFO Matt Pfeffer to take over.
In an interview with The Times, he said the company is looking for new distribution partners, as well as changing the sales policy for Afrezza, adding that the company is looking at markets outside the US. He did not provide any insight into the sale of the company.
It is time the drug maker stops relying overwhelmingly on Afrezza. It has other assets, including inhalable drug technology, that could rescue sales and revenue. Besides this, the company is also in the process of developing inhalable epinephrine, for the treatment of allergic reactions.
In 2006, Pfizer Inc Exubera was approved in the formulation of inhalable insulin, but upon entering the market, failed, owing to poor safety, dosage, and price factors, costing the company $2.8 billion.
Pharma giants were not able to develop insulin inhalers. This was all while the chairman of Mannkind spent a decade, plus $1 billion, on the approval of Afrezza. The drug was rejected twice, due to safety risks.
SANOFI AND MANNKIND DEAL
The drug maker had an accord with French drug company Sanofi, in August 2014, for the marketing of Afrezza. In 2014, Sanofi agreed to pay $925 million for the rights and distribution of Afrezza. The sale of the drug came in at a paltry $5 million in the first nine months of last year, falling terribly short of its target.
On January 5, 2015, the stock tumbled 50%, with an average downtrend of 67% over the last three months, inclusive of Tuesday’s decline, due to the termination of the deal.
In a conference call, CEO Matthew Pfeffer said: “This is not the end of the line for Afrezza or MNKD by any means.”
Now that Sanofi is out of the picture, and MNKD has resumed full control of the drug, it needs to address its price, since Sanofi was marketing it at a premium level.
In addition, the company has to educate both, doctors, and patients, of Afrezza's mode of action, since it belongs to a different class of drugs, with enhanced benefits.
The drug maker must also engage in spreading awareness regarding the inhaled insulin method within the diabetic population. The intake process is revolutionary, since most diabetics take insulin via needles. Sanofi did not adopt this intake process, and therefore failed to rake in sales as excepted.
The company is currently establishing diabetes centers for patients, powered by Afrezza Diabetes Management. This is going to be a one-window operation, providing the drug, spirometry testing, on-site prescription writing, and healthcare insurance filers.
COLLABORATION WITH RECEPTOR LIFE SCIENCES
The company is being reported to have reached a deal with Receptor Life Sciences on January 21, 2016.
Under the agreement, the companies would be responsible for the development of multiple inhaled therapies for the treatment of chronic pain, neurological diseases, and inflammatory disorders.
Receptor Life Sciences will bear all the development costs. Mannkind will share technology with Receptor, which will manufacture and commercialize the inhaled drugs.
MNKD will be entitled to garner development and commercialization milestones of up to $102.25 million. Furthermore, the drug maker will also receive mid-single to low double-digit royalties, on net sales.
ANALYST’S VIEW
Griffin Securities analyst Keith Markey said: “I don’t know where a story like this comes from, but I really don’t give it much credence.”
Markey added that at a J.P. Morgan health-care conference about its future plans and actions, the company had made it very clear, that these included the marketing of Afrezza on its own, and the developing other uses for its proprietary inhaler.
After the termination of the contract, Griffin raised its opinion to a "Buy," but Piper Jaffray and RBC downgraded their respective price targets to $0.05 and $0.15 respectively.
STOCK POSITION
The company’s stock is trending upwards at 17.28% at 12:54 AM EST.
www.businessfinancenews.com/27472-receptor-life-sciences-comes-to-mannkind-mnkds-rescued-after-failed-deal/
MannKind Corporation (NASDAQ:MNKD) stock sky-rocketed yesterday, following an insight into the company’s selling block.
A Reuters report cited unnamed sources, asserting that the drug maker is looking for a buyer. The very likely reason is the termination of the deal between itself and Sanofi SA (ADR), a marketing partner for the former's Afrezza drug.
It suggested Mannkind will get the selling rights back over the next three to six months, with a finalized deal no later than July 4.
CEO Matt Pfeffer was not available to comment.
In addition to the setback in the sales of Afrezza (human insulin), the company has faced other problems. Its chief executive resigned in November 2015, compelling former CFO Matt Pfeffer to take over.
In an interview with The Times, he said the company is looking for new distribution partners, as well as changing the sales policy for Afrezza, adding that the company is looking at markets outside the US. He did not provide any insight into the sale of the company.
It is time the drug maker stops relying overwhelmingly on Afrezza. It has other assets, including inhalable drug technology, that could rescue sales and revenue. Besides this, the company is also in the process of developing inhalable epinephrine, for the treatment of allergic reactions.
In 2006, Pfizer Inc Exubera was approved in the formulation of inhalable insulin, but upon entering the market, failed, owing to poor safety, dosage, and price factors, costing the company $2.8 billion.
Pharma giants were not able to develop insulin inhalers. This was all while the chairman of Mannkind spent a decade, plus $1 billion, on the approval of Afrezza. The drug was rejected twice, due to safety risks.
SANOFI AND MANNKIND DEAL
The drug maker had an accord with French drug company Sanofi, in August 2014, for the marketing of Afrezza. In 2014, Sanofi agreed to pay $925 million for the rights and distribution of Afrezza. The sale of the drug came in at a paltry $5 million in the first nine months of last year, falling terribly short of its target.
On January 5, 2015, the stock tumbled 50%, with an average downtrend of 67% over the last three months, inclusive of Tuesday’s decline, due to the termination of the deal.
In a conference call, CEO Matthew Pfeffer said: “This is not the end of the line for Afrezza or MNKD by any means.”
Now that Sanofi is out of the picture, and MNKD has resumed full control of the drug, it needs to address its price, since Sanofi was marketing it at a premium level.
In addition, the company has to educate both, doctors, and patients, of Afrezza's mode of action, since it belongs to a different class of drugs, with enhanced benefits.
The drug maker must also engage in spreading awareness regarding the inhaled insulin method within the diabetic population. The intake process is revolutionary, since most diabetics take insulin via needles. Sanofi did not adopt this intake process, and therefore failed to rake in sales as excepted.
The company is currently establishing diabetes centers for patients, powered by Afrezza Diabetes Management. This is going to be a one-window operation, providing the drug, spirometry testing, on-site prescription writing, and healthcare insurance filers.
COLLABORATION WITH RECEPTOR LIFE SCIENCES
The company is being reported to have reached a deal with Receptor Life Sciences on January 21, 2016.
Under the agreement, the companies would be responsible for the development of multiple inhaled therapies for the treatment of chronic pain, neurological diseases, and inflammatory disorders.
Receptor Life Sciences will bear all the development costs. Mannkind will share technology with Receptor, which will manufacture and commercialize the inhaled drugs.
MNKD will be entitled to garner development and commercialization milestones of up to $102.25 million. Furthermore, the drug maker will also receive mid-single to low double-digit royalties, on net sales.
ANALYST’S VIEW
Griffin Securities analyst Keith Markey said: “I don’t know where a story like this comes from, but I really don’t give it much credence.”
Markey added that at a J.P. Morgan health-care conference about its future plans and actions, the company had made it very clear, that these included the marketing of Afrezza on its own, and the developing other uses for its proprietary inhaler.
After the termination of the contract, Griffin raised its opinion to a "Buy," but Piper Jaffray and RBC downgraded their respective price targets to $0.05 and $0.15 respectively.
STOCK POSITION
The company’s stock is trending upwards at 17.28% at 12:54 AM EST.
www.businessfinancenews.com/27472-receptor-life-sciences-comes-to-mannkind-mnkds-rescued-after-failed-deal/
