MannKind Corporation (MNKD) and One Drop Sign MoU to form Strategic Alliance; Shares Rose 12%

MannKind Corporation (NASD:MNKD) and One Drop announced that they have signed a memorandum of understanding to enter into a collaborative agreement that would extend One Drop’s subscription service and digital health platform — which currently provides unlimited blood glucose testing supplies and 24/7 live in-app support from diabetes experts — by adding Afrezza as a rapid-acting insulin offering.

The planned collaboration will include three consumer-focused areas:

  1. Access, Cost Savings and Convenience initiatives, intended to simplify the complexity of starting and staying on mealtime insulin.
  2. Customized Coaching and Engagement designed to help people on Afrezza achieve the American Diabetes Association (ADA) recommendation of an A1C goal of less than 7%.
  3. Design innovation around packaging and exploration of a reusable Afrezza Inhaler with integrated Bluetooth technology.

“Against a backdrop of soaring insulin costs, this proposed collaboration is an essential step in the right direction,” said Jeff Dachis, CEO and Founder of One Step. “One Drop began with the goal of bringing affordable, accessible diabetes care to everyone living with diabetes worldwide. Through this partnership with MannKind, we will continue to work tirelessly to empower everyone with diabetes to achieve better health outcomes through the use of modern delivery methods that reduce the burden of diabetes management and increase engagement in self-care.”

“The complexity and conflicting incentives of the United States healthcare system are not aligned to help people with diabetes on insulin achieve optimal outcomes, as we see that almost seven out of ten people on mealtime insulin are not at the ADA goal of <7% A1C,” said Michael Castagna, Chief Commercial Officer of MannKind Corporation.  “Even though injectable insulins have been available for decades, 20% of users regularly skip injections.  We intend to empower people with diabetes to take charge of their health by trying something different.”

“We believe that diabetes care as a fully integrated digital service is the only way that we are going to bend the cost curve for payers and providers, while at the same time delivering evidence-based health outcomes that can scale,” continued Dachis. “Working with an innovator like MannKind, with a clinically effective, non-invasive inhaled mealtime insulin product, offers up an exciting opportunity to further our mission of relentlessly improving the lives of everyone with diabetes and a smartphone.”

One Drop recently presented findings from a retrospective study demonstrating that One Drop | Mobile app users report a substantial improvement in blood glucose levels, reducing A1c by 1.0 percentage point (8.2% to 7.2%) after only 2 to 12 months of using One Drop | Mobile.[1]

One Drop has also shared preliminary data collected from people with diabetes using One Drop | Mobile and One Drop | Experts for just four consecutive weeks, showing that One Drop users:

•   reduced average blood glucose by 27 mg/dL;

•   reduced average blood glucose from 185 mg/dL (A1c 8.1%) to 158 (A1c 7.1%);

•   reduced average percentage of high blood glucose readings from 19% to 4%;

•   nearly doubled the percentage of in-range blood glucose readings; and

•   consistently tracked food and blood glucose over time.[2]

In the next few months, One Drop will present the complete results of several clinical studies conducted over the past year. Altogether, One Drop | Mobile users have contributed more than 280 million primary health data points, which One Drop analyzes to deliver powerful insights that drive improved health outcomes for people with diabetes, as well as immediate proven cost-savings for both people with diabetes and their care providers.

“Our approach is to advance traditional therapies by delivering better access to scalable care, better education, more convenience, lower costs, and an improved user experience,” said Dachis. “Ultimately, we must deliver results. There is too much at stake for business as usual.”

Shares of MannKind are up nearly 12% to $0.79 in pre-market trading Thursday. MNKD has a 1-year high of $7.10 and a 1-year low of $0.67. The stock’s 50-day moving average is $1.39 and its 200-day moving average is $0.87.

MannKind Corp. is a biopharmaceutical company. It focuses on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer.


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