MannKind inks new insulin supply contract


MannKind Corp. (NASDAQ:MNKD) and Amphastar Pharmaceuticals (NASDAQ:AMPH) consummate a Supply Agreement under which Amphastar will manufacture recombinant human insulin for use in Afrezza,

Under the terms of the agreement, MannKind will purchase an aggregate of €120.1M from 2015 - 2019. The agreement term ends on December 31, 2019 but can be renewed in successive two-year terms upon 12 months written notice. MannKind can terminate the agreement upon two-years written notice.

From other sites
Comments (26)
  • Kastanes
    , contributor
    Comments (1288) | Send Message
     
    Nice way to start the morning!
    6 Aug 2014, 07:18 AM Reply Like
  • GRINGO STARR
    , contributor
    Comments (751) | Send Message
     
    No partner and going it alone?!
    6 Aug 2014, 11:33 AM Reply Like
  • henry75
    , contributor
    Comments (60) | Send Message
     
    Couldn't they find a Co with a better chart?
    6 Aug 2014, 07:42 AM Reply Like
  • justin L
    , contributor
    Comments (48) | Send Message
     
    Is this the partnership ?
    6 Aug 2014, 08:23 AM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    obviously only one of them
    6 Aug 2014, 08:55 AM Reply Like
  • GRINGO STARR
    , contributor
    Comments (751) | Send Message
     
    I thought they were selling the company?! How can a 90 year old run a company, for the long term?!
    6 Aug 2014, 11:24 AM Reply Like
  • GRINGO STARR
    , contributor
    Comments (751) | Send Message
     
    If they had a partner they would annouce before monday right?
    6 Aug 2014, 11:34 AM Reply Like
  • cashewking
    , contributor
    Comments (1004) | Send Message
     
    What is the partnership story ? Seems like they are going alone . Perhaps, more profit but slower growth or am I missing something here ?
    6 Aug 2014, 08:25 AM Reply Like
  • Robert Sacher
    , contributor
    Comments (2301) | Send Message
     
    Not a partner and not going it alone. MannKind do not make their own insulin. They have to buy it and then use MannKind's technology in their inhaler.

     

    Also, watch the stock today. If shorts start to cover, expect great news on Monday's webcast company report.
    6 Aug 2014, 08:30 AM Reply Like
  • J Scott
    , contributor
    Comments (26) | Send Message
     
    Announced the date for their quarterly results and this supply agreement at the same time. Sounds like they are going it alone and this was a heads-up. Trying to rationalize why they would announce a supply agreement ahead of partnership news. Everyone is waiting for the partnership news. Not sure.
    6 Aug 2014, 08:35 AM Reply Like
  • retroaspect
    , contributor
    Comments (16) | Send Message
     
    I think it's not wise to speculate , let alone make decisions, on the basis of that supply agreement. We'll just have to wait and see.
    6 Aug 2014, 09:05 AM Reply Like
  • henry75
    , contributor
    Comments (60) | Send Message
     
    $MNKD JMJ Been waiting for years
    6 Aug 2014, 01:34 PM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    This is just one of many partners. Amphastar will only manufacture the insulin because MannKind's manufacturing capacity is limited. In fact, it's not even close to enough to serve the US market alone.
    6 Aug 2014, 08:54 AM Reply Like
  • ricRX
    , contributor
    Comments (7) | Send Message
     
    i think you or the company once said the mnkd plant had the capacity to expand manufacturing to meet the growth needs? Was this just to make the cartridge from the raw insulin?
    8 Aug 2014, 07:55 AM Reply Like
  • Drewat70
    , contributor
    Comments (3) | Send Message
     
    This is great news! I was just looking over Amphastar's webpage. Did they Photoshop cars into there picture on the investors page? http://ir.amphastar.com
    6 Aug 2014, 09:05 AM Reply Like
  • brettj89
    , contributor
    Comments (374) | Send Message
     
    The trees too.
    6 Aug 2014, 09:48 AM Reply Like
  • B_Banzai
    , contributor
    Comments (557) | Send Message
     
    Looks like the clouds got in front of the symbol on the building...or that is a really tall building! Graphics must have been in a hurry! Oh well, as long as they make good insulin products.
    6 Aug 2014, 03:28 PM Reply Like
  • beeniecpter
    , contributor
    Comments (31) | Send Message
     
    Shorts begone!
    6 Aug 2014, 09:05 AM Reply Like
  • Coolgame
    , contributor
    Comments (3) | Send Message
     
    Any chance MNKD playing the middleman - Amphastar will manufacture Afrezza and some other partner will market it? I don't know if AMPH had the muscle to do it.
    6 Aug 2014, 09:11 AM Reply Like
  • MrHaigs
    , contributor
    Comments (610) | Send Message
     
    They wouldn't commit to buying this much insulin unless there was a deal already done with a marketing partner. Notice in the PR for the call Monday, they refer to "and other company developments". We'll have marketing partnership announcement by end of week.
    6 Aug 2014, 09:24 AM Reply Like
  • brianklu
    , contributor
    Comments (448) | Send Message
     
    I think partner is the wrong word, supplier seems to be more aptly suited.
    6 Aug 2014, 11:34 AM Reply Like
  • EasyReeder
    , contributor
    Comments (12) | Send Message
     
    Al Mann must 1) Maximize shareholder value; 2) Minimize shareholder liability; 3) Minimize shareholder tax liabilities.

     

    The best way I see to do that is to sell off completely the MannKind company --but only the Afrezza drug part -- thereby monetinizing/cashing out now Afrezza's potential. It also would reduce shareholder liability concerning Afrezza as well as taking the risk away of sales being disappointing.

     

    The money from the sale of Afrezza could then be used to fund another company (MannKind Technologies) that will profit from Dreamboat manufacturing and development of new drug deliveries via Technosphere .

     

    MannKind shareholders would exhange their shares for new stock in MannKind Technologies so that we may participate in future earnings and not be forced to sell our MannKind shares (which would trigger tax consequences).

     

    With the sale of Afrezza will come a contract with MannKind Technologies to manufacture the cartridges. In effect, this would serve as a sort of royalty on future sales.

     

    There could be a clause where the aquirer of Afrezza commits to buying a minimum amount of product thereby insuring the aquirer will commit to selling the maximum amount of product possible (alleviating the concern that certain companies could buy Afrezza and then kill it in order to protect a current diabetes product).

     

    We shall find out soon enough what is going to happen.
    6 Aug 2014, 12:03 PM Reply Like
  • ricRX
    , contributor
    Comments (7) | Send Message
     
    I have been fearing this. I was at the admin meeting in DC. I will tell you that FDA will be very reluctant to approve any new or old treatment via the lung. If it weren't for treating diabetes this product would not have been approved because of the route of administration. While I think the devise is amazing I believe there could be serious consequences. Please give me your thoughts.
    8 Aug 2014, 08:02 AM Reply Like
  • EasyReeder
    , contributor
    Comments (12) | Send Message
     
    I can see your point especially in light of a capricious FDA.

     

    The FDA has already approved Exubera and Afrezza. Granted they are both for diabetes, but there are many compelling other uses for Technosphere that would be equally beneficial to the world.

     

    I just cannot fathom the FDA standing in the way of such a potential breakthrough in drug delivery. And remember, this is just the beginning. The inhalation model will be further perfected.

     

    I see the issue as short term use of inhalers vs. long term use. Long term use, in my view, presents the greater possible risk of cancer (which I view the risk as rather small).

     

    Short term use, like pain medication delivery say in an emergency room, to me, presents little if any cancer risk.

     

    Only after some long term studies of long term inhalation patients will we really know what the cancer risk is. Long term Technosphere use could conceivably be disapproved while short term use approvable.

     

    Until then, the FDA, for the benefit of society, should stay out of the way and approve new drug/Technosphere combinations so long as there are no obvious cancer risks during trials.

     

    My opinion!
    10 Aug 2014, 03:51 PM Reply Like
  • al_bell
    , contributor
    Comments (2) | Send Message
     
    AMPH is a supplier, not a partner.
    Insulin is the raw material used in Afrezza. This is the same lab, I believe, that produced the Pfizer Insulin batch that Mannkind bought in 2010. This is good news and has nothing to do with the partnership.
    6 Aug 2014, 01:27 PM Reply Like
  • B_Banzai
    , contributor
    Comments (557) | Send Message
     
    Just spit ballin' here, but
    (a) could this improve MNKD's negotiating posture, and/or
    (b) did AMPH offer them a really sweet deal to ensure that they get a piece of the action?

     

    (a) could be interpreted as a liability. (b) of course is positive or at least mitigates the liability.
    6 Aug 2014, 03:35 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs