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MannKind (MNKD) Stock: Another Sanofi (SNY) Victim

MannKind Corporation (NASDAQ: MNKD) | Sanofi SA (ADR) (NYSE: SNY)

MannKind is having an incredibly hard time in the market as of late. Yesterday, it was announced that the commercialization agreement between MannKind and Sanofi is coming to an end. However, as the story unfolds, it’s starting to become clear that MNKD is actually a victim of SNY and, if investors are smart, they will push the company to take Sanofi to court! Today, we’ll talk about why I believe MNKD is a SNY victim, the fact that this isn’t the first time this has happened, and why I believe it’s a good idea to get involved in MNKD.

Why MannKind Is A Victim Of Sanofi

Last year, after the approval of MannKind’s Afrezza, Sanofi was contracted for the commercialization of the treatment. Afrezza is an inhaled insulin that has the potential to create a pivotal change in the treatment of diabetes. Because Afrezza takes the need for an injection out of insulin treatment, Sanofi should have had a relatively easy time marketing the treatment. However, throughout the year 2015, SNY was dragging its feet with regard to the commercialization of the treatment. As a result, sales were overwhelmingly poor and MNKD suffered!

When it finally became time to start the direct to consumer phase, a phase that was expected to increase sales and improve MNKD stock prices, Sanofi fiddled with their responsibilities yet again. While SNY did place magazine and online ads, investors pushed for television ads to no avail! However, the reason Sanofi decided to delay with regard to Afrezza was a bit back-handed.

Sanofi is a company that is in charge of commercializing several treatments, one of which is known as Lantus. Lantus is an insulin in the more mainstream form. That’s right, it’s an insulin injection. So, naturally, SNY wouldn’t want the treatment MNKD came up with to become the standard of care. After all, if Afrezza became the standard of care, it would essentially affect the bottom line of Sanofi. While the ties between MNKD and SNY are in the process of breaking, I don’t think that this is enough. Throughout the time Sanofi was dragging its feet, the company was driving MannKind into the ground. Now, it’s time for them to pay the price. Eventually, MNKD should take Sanofi to court for their wrong doing during their relationship.

This Isn’t The First Time Sanofi Willfully Held Back On Commercialization

While it may come as a surprise to some, MNKD investors know that Sanofi has a history of dragging its feet when it comes to the commercialization of treatments. In fact, many believe that this is done on purpose to drive the competition down, and that belief really makes sense. In fact, Sanofi was recently taken to court for doing just that. On November 9th, a lawsuit was filed against Sanofi with regard to stalling the development of a multiple sclerosis drug known as Lemtrada. The suit claims that Sanofi delayed the commercialization of the drug in an attempt to avoid paying out at least $708 million to rights holders under its 2011 agreement to acquire Genzyme Corp.

What We Can Expect To See Moving Forward

First and foremost, MNKD investors should be pushing the company to take SNY to court for their wrongful delay of commercialization of Afrezza, costing MNKD and its investors millions of dollars! Outside of this issue, I believe that MannKind is going to climb in the future. Once a television ad is created, I believe that sales will climb in a big way! All in all, things don’t look good for the short term for MNKD. However, in the long term, the company has quite a bit going for it!

What Do You Think?

Do you think MannKind should take Sanofi to court? Let us know your opinion in the comments below!

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Joshua Rodriguez :Hey everyone, I'm Joshua Rodriguez. I'm the founder of CNA Finance as well as several other sites. If you'd like to connect with me, follow me on or Twitter! I'd love to see ya there. Also, if you're looking for top quality content for your blog, news outlet, or any other website for that matter, please reach out to me at Joshua@CNAFinance.com! Legal Disclaimer - CNA Finance is NOT an investment advisor. All investment decisions should be well thought out and made with the help of a an investment advisor. We write our articles ourselves and they are our true and honest opinions. If we hold positions or plan to hold positions in any stock mentioned within the next 72 hours, it will be mentioned in the article clearly.

View Comments (8)

  • MNKD should without question file a suit against SNY. I also believe they funded GS as a tool to destroy the pps of MNKD. Time to act.

  • As it is evident that Sanofi has done this before, I believe a lawsuit should be filed ASAP.

  • The time it takes to do so, would not be worth the effort, not to mention court fees that mannkind cannot afford. The company would lack the ability to prove that intentional harm was done, unless Sanofi right out admits it's fault with a creditable source (Sanofi's leadership). Yeah, this idea is an innocent one, something that one of my retarded/alcaholic relatives would bring up while drunk.

    At best Sanofi would take fault in not conducting enough research for potential of lung disease at which point mannkind would sink deeper. I'm not a short and like many of you I lost a lot of money simply bc this new drug did not sell, so let's put on our big boy pants and stop trying to convince hard working people that this is a deal. It's important for new people that are going into the stock market, to have a better experience than many of us did with this company; I mean that from the bottom of my heart.

  • It was evident after the delayed launch last January that Sanofi acquired MNKD to keep it down. They have a European product in direct compitition with Afrezza. How was Al Mann so foolish?

    • What European product are you referring to, Gene? People around the world have been dying to get Agrezza.

  • Mankind should take Sanofi to court, as Mannkind and the diabetic community has suffered a great injustice. Sanofii promised to launch Afrezza to educate the Diabetes population on the treatment choices available, instead Sanofi deliberately stalled efforts to do so. It is without question that they merged with Mannkind to stop the publicity of this ground breaking drug. sanofi's intention is evidenced in their weak efforts to do only a soft launch with Mannkind's Afrezza. I do believe Afrezza could survive this downturn as millions of Americans could benefit from inhaled insulin versus injectable insulin. In 2012, 29.1 million Americans had Diabetes, the number continues to grow in epic proportions, these patients deserve to have the availability of such a drug. Some patients often are non-compliant with treatment regimen because they have to inject, having inhaled insulin could increase compliance which would help diabetics to achieve better control of blood glucose, and Hg A1c. Hence the lowering of these two would mean decreasing other health issues that arise from diabetes complication.

  • Unfortunate that something that can literally save or at least aide the health of millions of people can be bandied about for profit. Wait, I'm surprised by this?
    But in this case it's personal, since thanks to me research and efforts, my daughter just started on the drug. I found how hard it is to buck doctors, insurance companies, and the power of drug companies. Not to mention people who want to make a fast buck who don't know or care how major this drug is.
    Hope Al Mann succeeds in finding backing that can maintain the production and supply of this lifesaver which should have been a no-brainer - do you like needles? And that isn't even the biggest seller. It actually KEEPS blood sugar of type 1's from going up after eating due to it's rapid uptake.