The major selling point for Afrezza is that it's a better form of inhaled insulin than Exubera. While there is some truth to this, the fact is Afrezza, should it come to market, will have to prove this point over and over. Physicians still associate inhaled insulin with Exubera and will need some major convincing that Afrezza isn't Exubera. This convincing will cost money that MannKind doesn't have. This is one of the most overlooked factors when investors, more like suckers, buy into the MannKind myth. Eli Lilly and Novo Nordisk have spent millions building brand awareness and formulary position for their short-acting insulins. So much so that when Sanofi tried to enter the short-acting market with Apidra, the company couldn't make a dent in the market. MannKind and whoever is dumb enough to partner with the company will have to spend millions just to have a chance at gaining share -- a task which will be even more difficult as Mann has consistently stated Afrezza would command a premium price based on the fact it's inhaled and not injected. He's also claiming Afrezza works better than the injectable competition, a belief not shared by everyone in the diabetes community, including Diabetic Investor.
Biotech Stock Mailbag: MannKind, Ariad, Oncolytics Biotech
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