A Method to the Madness

A Method to the Madness

Let’s be honest here Diabetic Investor has been pretty hard on our Paris based wine drinking friends at Sanofi (NYSE:SNY). That we’ve questioned their diabetes strategy, actually we’re not sure they have an actual strategy to question, but we digress. The fact is we think we’ve actually figured out what they plan to do and honestly we’re shocked we didn’t see this earlier.

As shares of MannKind (NASDAQ:MNKD) continue to plummet, down almost 4% today and down almost 25% over the last 30 days, the plan all along was to drive shares lower and then buy the company on the cheap. Honestly Diabetic Investor is astonished we didn’t see the method to Sanofi’s madness.

Yep it seems that our wine drinking friends honestly believe that Afrezza is the answer to their prayers. Heck even the sales force has started drinking the Kool-Aid talking about how doctors are asking when Afrezza will be here. All this excitement has management absolutely giddy and ready to dance the hippie hippie. Rumor has it that several members of the Afrezza launch team have even stated that there main goal is to prove Diabetic Investor wrong.  That Afrezza is really the best thing to hit the market since sliced bread and soft soap.

Now we don’t know if Al Mann has been to the Sanofi headquarters or given any speeches to Sanofi sales reps, but by the way these folks are talking it sure sounds that way.

At this point Diabetic Investor could list the reasons why Afrezza has issues, serious issues to overcome before it can reach it’s much hyped potential. However, we’re feeling rather magnanimous today and will give our wine drinking friends the benefit of the doubt. After all they are about to spend nearly a billion dollars in the hopes to make maybe a few million.

Still Diabetic Investor is curious just how strongly Sanofi feels about Afrezza, or put another way are they willing to back up all this talk. To test this theory Diabetic Investor purposes a simple wager to see who’s right here. We say that Afrezza will not reach a billion dollars in worldwide sales in 5 years. If we’re right Sanofi provides Diabetic Investor a case of our favorite beverage Miller Lite, a bottle of Grey Goose, a chilled bottle of Medallion champagne and a case of Prisoner wine. If we’re wrong Diabetic Investor will apologize in print publicly admitting we were wrong and Sanofi was right.

Now we don’t want to be unreasonable here but honestly if the company can afford to blow a billion bucks on Afrezza they can certainly afford to accept this wager.