MannKind Corporation (NASDAQ:MNKD) shares fell more than 5% on Thursday, even as there was little news from the company. However, the Securities and Exchange Commission revealed two insider selling activities in the stock, which could have been the culprit. MannKind president and chief operating officer Hakan Edstrom said in a regulatory filing that he sold 74,668 shares of the company in the open market on December 1.
Executive sold shares under the Rule 10B5-1 Plan
Edstrom unloaded shares at an average price of $5.89 for a total transaction value of $439,795. He still directly owns 1,047824 shares of MannKind, which are currently worth about $5,668,728. Diane Palumbo, the VP of human resources, also sold 183,522 shares on December 1. Palumbo offloaded the stock at an average price of $5.89 for a total proceeds of a little over $1 million. Palumbo now owns 29,105 shares of the company.
Note that these two executives offloaded shares as part of a scheduled insider sale under the Rule 10B5-1 Plan. So, it’s unlikely to raise concerns. Separately, MannKind presented at the Piper Jaffray Healthcare Conference on Dec.2. Speaking at the event, Edstrom said that MannKind’s marketing partner Sanofi SA (ADR) (NYSE:SNY) (EPA:SAN) will be marketing Afrezza to both endocrinologists as well as general practitioners right from the start. But they will focus heavily on endocrinologists.
MannKind expects Afrezza to appeal to general practitioners
MannKind believes that there will be solid patient-driven demand for its inhaled treatment. Edstrom said that general practitioners will find Afrezza attractive because then they won’t have to refer patients to endocrinologists and losing them. He also revealed that marketing budget from Afrezza is decided by a committee where Sanofi and MannKind have equal weight. So, the U.S. company will have the ability to ensure that resources are apportioned appropriately to its diabetes treatment.
FDA has asked MannKind to conduct three more clinical studies. They include pediatric study, dosing study and a five-year safety study. The pediatric study, if successful, could allow Afrezza to be used for children and teens with Type-1 diabetes.
MannKind shares rose 0.55% to $5.44 in early trading session Friday.