Back in August, I noted that Mannkind (NASDAQ:MNKD), which has been developing an inhaled insulin product for many years now, had done a stock-swap deal with Seaside 88. That, I thought, was not a good sign. It's an investment group that I profiled (unfavorably) here, in reference to its dealings with Generex (OTCPK:GNBT), another spray-insulin company, allegedly working on an oral delivery route.
Adam Feuerstein's the guy who put me on to Generex. (Last I heard, he was getting sued by it for his comments, although his opinions seemed to me to be well-justified. No updates on that, as far as I know.) He's also recently updated the Mannkind situation, and it's not looking good. Last month the company fired about 40% of its workforce, and apparently has about enough cash on its books to make it to the end of the year. Its founder, Al Mann, has plowed a lot of his own money into the company, but on a recent conference call, he declined to say if he's going to put in any more. Mann is a real believer, and has given this his best shot. But it may not be enough.
The class-action suits are already fluttering through the air. And the bubbling tar pit that is spray-delivered insulin continues to churn.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.