MannKind Corporation decided to withdraw its offer to employ Duane DeSisto as president and chief executive officer after his former employer; Insulet Corporation raised objections to his appointment.
DeSisto signed a non-competition agreement with Insulet Corporation, which is effective until September 17, 2016. His appointment with MannKind would violate that agreement.
Last month, the company appointed DeSisto as president and CEO to replace Alfred Mann, who served in the position on an interim basis since November 19, 2015. DeSisto will no longer join the company because of his existing non-competition agreement with Insulet Corporation.
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MannKind appoints Matthew Pfeffer as new CEO
The Board of Director of MannKind appointed Matthew Pfeffer as CEO. He would assume the position on January 10, 2016. Pfeffer would also serve as a member of the company’s Board, and continue his role as chief financial officer.
In a statement, Kent Kresa, lead director of the company said, Matt has been a valuable member of the executive management of MannKind for many years and has been instrumental in managing our transition to a commercial stage operation.”
He added that Pfeffer understands the strategic and financial challenges currently confronting the company. According to him, Pfeffer already started pursuing several solutions to the company’s problems.
Earlier this month, MannKind cancelled its license and collaboration agreement with Sanofi-Aventis U.S. LLC for the development and commercialization of Afrezza Inhalation Powder.
The company is reviewing strategic options for Afrezza following the termination of its license and collaboration agreement with Sanofi. The termination of the agreement will be effective no later than July 4, 2016.
MannKind stock performance
The shares of MannKind are trading around $0.67 per share, up by more than 2% at the time of this writing, around 12:06 in the afternoon in New York. The company lost more than 88% of stock value over the past year. The stock dropped from its highest level of $7.88 per share to its current trading price.
Analysts at Piper Jaffray maintained their Underweight rating on the shares of the company with a price target of $0.05 per share.