How will this be explained away?

How will this be explained away?

MannKind (NASDAQ:MNKD) and Afrezza supporters have long noted that Sanofi (NYSE:SNY) in spite of evidence to the contrary is an excellent partner to have. They look at Lantus and assume since the company had one major hit in diabetes that everything they touch in diabetes will be a hit. They conveniently ignore that Apidra and the iBGStar have been nothing but failures. They also ignore that the company stands a far better chance at making money with Toujeo and the margins for Afrezza are non-existent.

As we have noted they are hanging their hats on the direct to consumer ad campaign plus the expansion of the Afrezza sales team. Well as it turns out this expansion may not be happening after all as Diabetic Investor has learned that the company has cut the number of reps who were scheduled to sell Afrezza by 2/3. The company is scheduled to have a training session in Las Vegas which originally was designed to train reps currently selling Toujeo to also sell Afrezza. Given the news coming from Sanofi reps this is no longer the case.

Now we hate to point out the obvious but it’s looking more and more as if Olivier has come to the conclusion that Afrezza at best is nothing more than a niche product and at worst a never ending sink hole that will drain Sanofi resources.  Listen we’re pretty sure Olivier has seen the numbers for Afrezza and Toujeo and quite frankly the numbers flat out suck. He’s also aware that the company is heavily invested in Toujeo as they have put on a full court press to get the drug onto formulary. An effort which included steep price discounts.

To put this in the simplest terms possible, something we need to do as the MannKind/Afrezza zealots have a difficult time understanding the complexities of the insulin market, better to bet on a horse that could finish in the money rather than one that’s headed for the glue factory.

Frankly we can’t wait for this news to become public knowledge if for no other reason as we want to see how the MannKind/Afrezza zealots explain this development. How will they rationalize this and spin it into something positive. Something these people are very good at. Poor formulary coverage no problem that’s natural for a new drug and in time this formulary coverage will improve. The need for additional tests no problem as physicians are becoming more comfortable with these tests. And of course Afrezza results are far superior to conventional short-acting insulin that once these results are well known Afrezza sales will skyrocket. And let’s not forget about the DTC campaign which will be magical.

Seriously there are days we wish we were as delusional as the MannKind/Afrezza zealots, that we could also live in LaLa land. Listen we don’t know what these people are drinking, smoking or inhaling but we’d like to know what it is. Being from Chicago home to our beloved Bears we’re going to need this stuff to deal with a football team that is going to be absolutely awful.

Finally we would like to thank the many readers who were kind enough to recommend wine for our dinner with Serge and Olivier. However given the way things are going with Afrezza we’re seriously considering switching to Fireball shots as they just might need something stronger than wine.