Boston, MA 04/15/2014 (wallstreetpr) – MannKind Corporation (NASDAQ:MNKD) continued to slide on Monday as well after the news broke that a potential rival has filed for IPO. The share prices of the company came down by 1.87% to $6.29.
IPO Filing By Dance
Last week, MannKind’s potential competitor, Dance Biopharm has reportedly filed papers with the Securities Exchange Commission (SEC) to initial public offering in the market. Dance Biopharm eyes to raise $75 million through the offering. The news took MannKind’s shares down as the rival Dance Biopharm has also developed an inhaled insulin product aimed to treat diabetes. Dance’s flagship product, Dance 501, is developed with the aim to deliver liquid insulin through its handheld, small electronic inhalation device. As per the IPO filings, Dance mentioned that it intends to commence Phase III clinical trial of its product by the beginning of 2015 and apparently would apply for regulatory approval of its product in the Europe, China and U.S.
Approval A Greater Possibility
At present, MannKind Corporation (NASDAQ:MNKD)’s Afrezza, the inhaled diabetes device is under review by the FDA. The shares of the company surged earlier this month when an FDA advisory panel approved Afrezza for Type 2 diabetes and also recommended it for Type 1 diabetes, as well. However, much of the momentum was lost after reports emerged that the FDA will take until mid-July to review its treatment.
According to the analyst, SimosSimeonidis, at Cowen & Co., the device’s approval is more probable than not, based on the positive votes and recommendation by the FDA advisory panel, but it still suffers some risk factors. Simeonidis added that the FDA looks at the drug as a “real need” for those patients who cannot or should not get injectable insulin. The research firm also sees the possibility of a potential partnership to emerge post the approval in July, and if MannKind Corporation (NASDAQ:MNKD) has more offers on the table then it might get earlier, before the decision comes.