Ironic Timing

Ironic Timing

In what can only be called ironic timing on the same day that company founder and main benefactor Al Mann passed, MannKind (NASDAQ: MNKD) announced they would be seeking an extension to file their annual report. According to a company issued press release;

“MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced that it anticipates being unable to timely file its Annual Report on Form 10-K for the year ended December 31, 2015 by the filing deadline on February 29, 2016.  In such event, the Company anticipates filing a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission (SEC).

The Company is experiencing delays in completing its analysis of accounting issues resulting from the previously announced termination of the Sanofi License Agreement, and expects that additional time will be needed to complete a detailed review of the impairment of assets as a consequence of the termination.”

This news comes after the company presented at the RBC Investor Conference where they noted they finished the year with about $59.5 million in cash. Management acknowledged that this sum will only get them through the first half of the year which basically means that without some sort of capital infusion their long term viability is questionable. Given the many serious issues facing the company it’s questionable whether they can raise the capital they’ll need to keep going.

At the same their ex-partner Sanofi (NYSE: SNY) has begun cost cutting which to no one’s surprise includes mass beheadings at their beleaguered diabetes franchise. To say that this franchise is in complete disarray is a vast understatement.  Which makes Diabetic Investor wonder how Google feels today. The question is will Google like Medtronic (NYSE: MDT) come to their senses and walk away. About the only thing Sanofi has proven when it comes to diabetes partnerships is they aren’t very good partners.

While we are not surprised how far Sanofi has fallen these events just reinforce something we’ve stated before; the best way to make a small fortune is to start with a big one.

In one respect we are gratified that Al Mann will not be around to see the company he created, that he supported financially file for bankruptcy. An event that lies not on his shoulders but squarely at the doorstep of our wine drinking friends. Hopefully everyone in the diabetes community will not let the MannKind disaster tarnish Al’s legacy. Even a giant like Al Mann should be allowed to make a mistake.

Let’s just hope that the folks at Google don’t allow Sanofi to do to them what they have done to every other partner they’ve had in diabetes.