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Why Mannkind's Afrezza Will Fail

|Includes:MannKind Corporation (MNKD)

I am writing this article in light of This Article by Brian Pacampara. As a Type 1 diabetic I have followed Mannkind (NASDAQ:MNKD) with interest, but I wonder if investors really know what they are investing in. It seems like people believe that an inhalable insulin will change the way diabetics live, opening up one of the largest growing markets in America.

But this is false, in 2006 Pfizer (PFE) already released insulin in an inhalable form. After one year they pulled their drug Exubera due to high cost and the fact that it was no more effective than normal insulin. Insurance wouldn't cover the cost of inhalable insulin due to the fact that it was no better than normal injections. Afrezza is doomed to the same fate.

Additionally there are more concerns with inhaled insulin such as lung cancer, effects of long term use, dosage controls. I know it is a faux pas to link to Wikipedia, but here is a quick of overview of the history of inhalable insulin. Investors may consider reading this before remaining long in Mannkind.

Disclosure: I am short MNKD.

Additional disclosure: I am not a financial a financial advisor and I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Stocks: MNKD