Just when it couldn’t get wackier it does

Just when it couldn’t get wackier it does

The past two days we’ve written about this new fascination with patch pumps, how companies seem to see these devices as the next hot diabetes device. Now never mind there may not be a market for these devices or that the competitive environment is less than favorable, no pre-programmed patch pumps are the hottest thing going. Yesterday we reported that CeQur has raised another $100 million while today we learn that Unilife (NASDAQ:UNIS) who just launched their patch pump is exploring a possible sale.

According to a story posted by Reuters;

“Unilife Corp, which makes injections and insulin patch pumps, said on Wednesday it had hired Morgan Stanley to help it review strategic alternatives, including a sale, after getting interest from a possible buyer.

The company received a “third-party initiated expressions of interest”, it said in a statement, without giving further details.”

Now we have no idea if the recent launch of their patch pump prompted this interest but we do have some advice for the good people at Unilife – SELL. Seriously don’t waste too much time, take the money and run. Let someone else get the patch pump on formulary, let someone else build a sales team, let someone else support the product and most of all let someone else figure out how to compete with not just the other patch pumps but also established cheaper devices that do the job just fine – thank you very much.

In other wacky news check this out according to a company issued press release;

“Generex Biotechnology Corporation (www.generex.com) (GNBT) today announced that its previously announced intention to implement a buccal cannabis co-development arrangement with CannScience Innovations Inc. (www.cannsci.com) has been formalized.”

Now some of the newer readers of Diabetic Investor may be unfamiliar with Generex but at one time the company said it could deliver …wait for it … insulin. Yes Generex at one time believed buccal delivery of insulin was the end all be all. Now it really didn’t matter much that this company had one the worst reputations in the industry or that many considered the company nothing more than a stock scam, no there were some who believed that buccal delivery of insulin was the future.

Frankly Diabetic Investor hasn’t been paying too much attention to Generex but we actually think the company may be onto something with this latest news. While the diabetes market is huge and growing so too is the market for legal pot. Yes it seems with each day another state is legalizing pot and taxing the heck of it as a way to raise revenue.

We also have an idea for Generex that could bring them back into diabetes, well sort of.  As everyone knows we’re skeptical that Afrezza will be a commercial success. That like Exubera before it Afrezza will amount to nothing more than a niche product, if that. However there could be a silver lining here should Sanofi (NYSE:SNY) pull the plug on their partnership with MannKind (NASDAQ:MNKD).

Many of the MannKind zealots may not be aware of this but when Pfizer dumped Exubera they basically transferred Exubera patients to MannKind. Although Diabetic Investor is not aware whether MannKind also acquired Pfizer remaining supply of  Exubera delivery devices, affectionately known as the Exubera Bong it’s safe to assume they did.  Now given that MannKind is in a very precarious financial situation and should Sanofi walk away this situation would go from bad to critical we have an idea, do a deal with Generex.

Think about this as perhaps pot can be reformulated so it can be delivered not only through the buccal cavity but also inhaled in the lung without and this is the critical part, the use of any lighters. Experienced pot smokers interviewed by Diabetic Investor tell us that such a formulation would be attractive for several reasons. First they see inhaled rather than smoked pot as safer for their lungs. Pot delivered via either the Exubera Bong or Afrezza device would be more acceptable in public. And most importantly there would no fear of causing a fire when they are too stoned.

This is such a natural fit for MannKind we cannot believe they haven’t thought of it. Keep in mind this is a company who isn’t shy about promoting a pipeline that has no chance in hell of becoming a reality. So why not actually do a deal in a market that like diabetes is expanding.

Even if the deal doesn’t work out think of the great side benefits it would have for the folks at MannKind as at least they could use the product to ease the pain after Sanofi walks away. Talk about going out with a bang.