Last Updated on October 26, 2024
Sanofi, a name that most diabetics are familiar with, has not reached the profit levels they envisioned. Sanofi, a French pharmaceutical company, is a leading resource for diabetes treatments and research.
In a recent statement by Sanofi, executives showed that their overall net income dropped by almost 7% from last year’s numbers, but the bad news does not stop there. The sales from the diabetes division of the company decreased by 13%.
There are several reasons for the significant decline in sales. One of those is the decline in sales of their drug Lantus. Lantus is a long-acting insulin treatment taken once daily at mealtime. Lantus is an insulin injection pen that previously has had excellent sales within the diabetic community, until this year. The company lost the patent protection on Lantus, which allowed competitors to move in on their market share.
Another significant change to Sanofi is the halt on the Afrezza medication. Earlier in the year, the company decided to stop marketing the inhalable insulin to try and boost the sales of their Lantus pens. Sanofi later decided to end the licensing agreement with Mannkind. Afrezza is an inhalable insulin treatment that was being marketed as an alternative to the daily injections. Afrezza was being produced in a partnership between Sanofi and MannKind, a pharmaceutical company that works to develop and discover new treatment options. Sanofi is backing out of the partnership after the product experienced less than exciting sales. Afreeza was sold using a global licensing agreement between Sanofi and Mannkind. Sanofi was responsible for the “development and commercialization” of the inhalable insulin.
The ending of the licensing partnership between the two companies doesn’t mean the end of the Afreeza insulin, yet. Mannkind is hoping to find a new partner that will be able to lower the price point for consumers, which many analysts believe is the major reason for the poor sales performance.
The Chief Executive of Sanofi, Oliver Brandicourt has experience with inhalable insulin devices. A decade ago he was an executive on a similar product, Exubera, failed several years ago in 2007. Many users of Exubera complained about the design of the inhaler, saying that it was too large and awkward. The inhaler wasn’t small enough to fit into a pocket, making it inconvenient for everyday use. Similar to Afreeza, the other reason or the Exubera failure was the high price point, costing $150 for the device and $90 for refills. Mannkind and Sanofi looked to learn from these complaints, making the inhaler much smaller and trying to lower the price.
When first announced, there were fears that the failed partnership with Sanofi would mean the end for Mannkind, eventually ending in bankruptcy. But Matthew Pfeffer, the firm’s CEO, has different ideas, saying that the company is “here to stay.” His plans for improvement were to cut the price of Afrezza and find a new partner. He also said that MannKind had enough cash to get through to the second half of the year.
The Food and Drug Administration approved Afreeza to be sold in the United States but are requiring several rounds of testing. There are worries regarding the safety of an inhalable insulin-like Afreeza, that the inhaler could cause lung cancer or trouble breathing for anyone with existing respiratory problems.
While Afreeza may (or may not) last in the diabetes market, many people still hold out hopes for an inhalable insulin device that is both affordable and efficient. Something like Afreeza is a fast-acting insulin that could make managing diabetes convenient and quick.
