Good news, bad news for Mannkind's inhaled insulin system
Company releases test results showing that its Technosphere insulin delivery system is as effective for diabetics as injections. But investors are still wary about safety, and Mannkind's stock slumps.
Even after biotechnology company MannKind Corp. released new data on its experimental insulin inhaler today, the Valencia-based company has been unable to assuage the safety concerns that decimated its stock in April.
Test results suggesting that MannKind's inhalable Technosphere Insulin System is as effective as traditional injection treatments for diabetics were supposed to be welcome news for a venture that many investors and competitors had pegged as a long shot.
The news was also packaged with the announcement of a collaboration between MannKind and Pfizer Inc. and infused with anticipation for MannKind's presentation at the UBS Global Life Sciences Conference next Tuesday.
Still, skeptical traders balked at warnings that the drug may have to be sold with a cancer advisory and pushed the company's stock as low as $2.39 in morning trading from the day's $3.81 opening, a 37% dip.
A year's worth of clinical trials showed Technosphere patients with Type 1 diabetes experiencing better blood sugar levels between and after meals, steady lung function and stable weight or weight loss. While on the drug, fewer patients experienced incidents of hypoglycemia, the company said.
"These observations confirm the results of earlier studies and build on the important differentiating features of this product, including its positive effects on fasting glucose levels," said Dr. Peter Richardson, the company's chief scientific officer, in a statement.
But for all its promises of a super drug, the company has been battered by bad buzz for much of the year. Pfizer stopped selling its Exubera powder in October after abysmal sales, sparking an exodus from inhaled insulin development that included Novo Nordisk in January and Eli Lilly & Co. in March.
In April, MannKind's stock plunged nearly 60% when Pfizer revealed that Exubera may have caused lung cancer in six patients.
In a meeting with investors, MannKind said its inhaler may be covered under a cancer warning that includes all inhaled insulin products. In June, U.S. and European health regulators issued their own advisory.
But MannKind said its studies showed no cancer risk and added that a warning label is unlikely. Technosphere could pull in $1 billion in annual sales, the company said.
MannKind and Pfizer also announced plans this morning to transition some Exubera patients with severe fear of needles and negative reactions to insulin injections to clinical trials of Technosphere therapy.
