How will it end?

How will it end?

Lost in all the med-tech news generated last week was the MannKind (NASDAQ:MNKD) earnings call and considering the call lasted all of 32 minutes and sounded more like the last gasp of a dying company than an earnings call the folks at MannKind just might be glad that no one was listening. Those who did bother to listen really didn’t hear anything all that different from previous calls as MannKind continues to over-hype Afrezza and its future potential. Rather than review what was said, and frankly it’s really not necessary as everyone has heard this song before, the time has come to look at how this sad saga will finally come to an end.

Given the company is running out of money and is struggling to find new financing; the end could come along quicker than many believe. Based on the tone of the call and the answers to some of the financing questions it seems that Al Mann, the company’s founder, has finally decided that he can no longer afford to put any more of what’s left of his fortune into this loser. The only question that seems open at the moment is will Al be able to recover a portion of his sizable investment in MannKind.

Actually Diabetic Investor believes that Al recovering a portion of his investment and the end of MannKind are linked together. Since no one likes to admit defeat and there are companies out there who would likely want to own MannKind’s IP, it’s possible that MannKind could be sold at fire sale prices allowing Al to recover a small portion of his investment and have one heck of a tax loss. It’s hard to fathom anyone coming along and paying a huge premium for MannKind given the considerable problems the company faces.

When the end does come, it unfortunately won’t be the end of the quest to develop commercially viable inhaled insulin. As we have recently seen with Dance Pharmaceuticals there is always someone who thinks they will succeed where everyone else has failed. Just as the quest for a non-invasive glucose monitor just won’t die even though millions have been wasted on this quest, so too will the quest for inhaled insulin continue as long as there are investors dumb enough to keep funding these efforts.

Diabetic Investor can’t help feel a little sorry for Al Mann, once a giant in the diabetes world, as this not the way he wanted to ride off into the sunset. The business of diabetes has been very good to several executives almost all of whom after making their fortune return to the business as they just can’t seem to get enough. As Diabetic Investor noted long ago the business of diabetes is like Hotel California as you can check out but you never leave. Unfortunately for Al Mann, he should have left years ago with his legacy intact and untarnished by the MannKind disaster.