You just knew this was coming

You just knew this was coming

First came Exubera, which failed miserably and cost Pfizer $4 billion. Next came Afrezza, which also failed and is about to drive MannKind (NASDAQ: MNKD) into bankruptcy with added benefit of making our wine drinking friends in France look like idiots. Now at this point one just might think that no one would be dumb enough to back yet another attempt at inhaled insulin. That after two colossal failures people would realize that the time for inhaled insulin has come and gone. Well if you thought that way you were wrong as yet another company has decided they can build a better inhaled insulin mouse trap.

Yes, and we know this sounds crazy, Dance Biopharm Holdings, Inc. isn’t getting ready to do the hippy hippy no they have decided to try and raise more money. Yep, in spite of those pesky facts we mentioned earlier Dance seems to be a big believer in the greater fool theory. That investors will willingly fork over even more money for yet another form of inhaled insulin which will also fail commercially.

Just for grins and giggles here is how Dance is trying to differentiate their mouse trap from Afrezza. Dance noted three major issues with Afrezza – premium pricing – the fact that Afrezza competed directly with Lantus, (which is a polite way of saying Sanofi (NYSE: SNY) didn’t want Afrezza to succeed) and weak marketing/promotion. Which is another way of saying when it comes to any diabetes product not named Lantus Sanofi couldn’t hit water if they fell off the Queen Mary.

It goes without saying they have a very slick PowerPoint presentation as besides believing in the greater fool they also know they can steal more money with a good PowerPoint than they can with a gun.

It also goes without saying that their delivery device is way cool and patient friendly.

Although they don’t come out and say it directly they imply that their mouse trap will be cheaper to manufacture than Afrezza. COGS were a major problem for both Exubera and Afrezza.

And guess what; they have partners, yep Harmony Biopharm, Ltd. and Dongbao Pharmaceutical both Chinese companies. Never mind these partners have nothing in the US or Europe and this joint venture only applies to China, they can legitimately say they have partners.

Not to be outdone like MannKind they are yapping up their pipeline just to show they are not a one tick pony.

Now if all goes well, which it won’t, the company sees FDA action sometime in the first half of …wait for it… 2021, which is 5, yes 5 years from today. Perfect when you consider that by that time we will not just have biosimilar long-acting insulin on the market but also biosimilar short-acting insulin too. Yep nothing like coming to market at time when pricing power has fully transferred to payors and the product you have just happens to need a premium price if you are to make any money. But then again who cares about a little thing like making money.

Oh and did we mention that the hurdles created by Exubera for Afrezza have been multiplied by a thousand for Dance with Afrezza also failing in the marketplace. This is like trying to sell tickets on the Titanic AFTER it hit the iceberg.

Now Diabetic Investor is sure the good people at Dance really believe in what they are doing. That they believe they have a better mouse trap. That they can succeed even though Exubera and Afrezza did not.

Yet as Momma Kliff was fond of saying; “You can sheer a sheep many times but only skin them once.” That is unless you have a slick PowerPoint and work in the wacky world of diabetes where anything can and usually does happen no matter how crazy it seems. Which brings up another very popular Momma Kliff saying “Oy Vey”.