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Post by laffs4sale on Apr 7, 2016 16:42:10 GMT -5
This is an idea I've been thinking about for a while. Since there are such synergies between our products (a favorite Wall Street word), does it make sense for us to merge with Dexcom? They are well-capitalized with the ability to raise more capital if needed. They can co-market their CGM with Afrezza and sell the guns and the gunpowder, to use a metaphor. They must be aware of the incredible success diabetics are getting using Afrezza with a CGM (I believe their CEO said some nice things about Afrezza recently). They can sell their CGMs and offer the Afrezza at a reduced rate for Dexcom users, which will grow adoption of Afrezza while differentiating Dexcoms as new competitors enter the market. What do you all think?
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Post by agedhippie on Apr 7, 2016 19:30:56 GMT -5
Lets put this in perspective. Dexcom is barely cashflow positive and has about 150,000 users globally. I cannot see them wanting to jump into bed with Mannkind - different businesses and cashflow problems see to that.
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Post by laffs4sale on Apr 8, 2016 5:46:17 GMT -5
Yeah, they're desperate -- a perfect partner for us!
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Post by peppy on Apr 8, 2016 6:19:17 GMT -5
This is an idea I've been thinking about for a while. Since there are such synergies between our products (a favorite Wall Street word), does it make sense for us to merge with Dexcom? They are well-capitalized with the ability to raise more capital if needed. They can co-market their CGM with Afrezza and sell the guns and the gunpowder, to use a metaphor. They must be aware of the incredible success diabetics are getting using Afrezza with a CGM (I believe their CEO said some nice things about Afrezza recently). They can sell their CGMs and offer the Afrezza at a reduced rate for Dexcom users, which will grow adoption of Afrezza while differentiating Dexcoms as new competitors enter the market. What do you all think? A poster pointed out there was probably a non dis-closure agreement signed for this sanofi event in California. screencast.com/t/tb72AUHjv9
Sam and Eric, are talking about afrezza and Dexcom. Sam: screencast.com/t/s6neMncEshf Eric: www.youtube.com/watch?v=iS4Vxly5-WA .
finance.yahoo.com/news/dexcom-inc-reports-fourth-quarter-210100275.html
The board has talked about this before. The decisions are not ours.
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Post by matt on Apr 8, 2016 9:38:47 GMT -5
Generally speaking, the market does not look kindly on the merger of medical device companies and pharmaceutical companies. The development times, manufacturing methods, regulations, product life cycles, call points, and other factors are so different that the synergies do not justify the acquisition premium. Once upon a time, like the 1970's and 1980's, a lot of pharma companies had device subsidiaries (Lilly owned Physiocontrol and Guidant, Pfizer owned Shiley, etc.). While there are exceptions, by the 1990's most pharmas had divested their investment in medical devices and biologic products produced from human or animal products (as compared with biologics based on cell culture).
As an idea it is certainly not crazy, but the hurdle would be explaining to Dexcom shareholders why they should pay a premium and take on risk to acquire an insulin product when they have been growing sales nicely without an insulin. That might be a tough story to tell.
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Post by laffs4sale on Apr 9, 2016 6:40:27 GMT -5
I'm no expert in the field, but I do know they are selling to the same customer. It would seem more efficient for them to sell both products at once. One sales force instead of two. I also think Dexcom is facing a threat from new entrants into the CGM market and they will need to differentiate their product. Afrezza would be one way of doing that. Since many CGM users are potential Afrezza customers, you could offer a discount on the drug if they buy a Dexcom. In your examples, there weren't obvious marketing synergies between unrelated products. On the other hand, Dexcom and Afrezza are tied at the hip.
Whether its a merger, a licensing deal, or a BO, Mannkind had better do something quickly. The market is rightly pricing in a failed marketing strategy and near-term bankruptcy from this company. They have wasted three months. If they waste another three months, it'll be game-over. We can't market this drug ourselves. We need to license, merge, or sell the whole company. But marketing a drug without money and without a sales force is sheer stupidity and doomed to fail. And everyday is one day closer to BK.
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