Is There An Efficacy Concern With MannKind Corporation (NASDAQ:MNKD)?

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MannKind Corporation

Sellers are more interested to take a trade in MannKind Corporation (NASDAQ:MNKD), which is stock down over 30% since February 1. The firm’s update of a new Afrezza titration pack and bigger sales force failed to excite investors.

The details

MannKind has opted for the reverse split mechanism to salvage their NASDAQ listing. The company has told shareholders there is an efficacy concern and now they updated as to why there is this problem. Requesting for a label change for an insulin designation carries a prime downside that inquiries the future marketing for Afrezza.

Sanofi SA (ADR)(NYSE:SNY) and Pfizer Inc. (NYSE:PFE) two of the largest drug companies in the world, they both tried to commercialize an inhaled insulin offering. Both firms, with huge sales forces and massive marketing budgets, each within a year’s period into their roll out realized the shortcomings related with this type of offering. Now MannKind’s Afrezza is progressing into the third year for the offering having been in the market. And the results from company’s measures lag the results recorded by either Sanofi or Pfizer.

When one totals the total expenditures in advancing and marketing the 2 inhaled insulin offerings that have been accepted by the FDA, they are seeking almost $5 billion. Should one analysis at the history of drug advancement, they would be pushed to find any other offering where this much cost has been incurred with a small return for the initiative. MannKind promises and talks a great story, however, posturing and blustering that they are presently operating from a leading position, is disproved by the facts of the situation.

MannKind conference call discussed on the action pertaining to the preparation required to experience a reverse stock split. So, it came as a no surprise that the stock recorded a 15% decline after the conference.

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