MannKind Corp. (MNKD)

[Denise Chanterelle]

Sanofi's Point of View
1. They know they have a very effective drug in Afrezza, but its immediate success is not financially important to Sanofi.

2. They want to negotiate the highest price possible to achieve tier II coverage and they are in no hurry to lower the price when they can wait for superior medical results to add leverage against the insurance companies.

3. Large scale advertising without full tier II coverage only creates a situation where patients are unable to get Afrezza, because they can't afford it yet under their current coverage.

4. Shorts will cover in direct proportion to insurance tier II coverage including the time delay built into the advertising / sales / prescribing process.

Both the longs and the shorts are correct. The shorts are correct that Mannkind's profitability is many months aways. The longs are correct that Afrezza will eventually have significant worldwide marketshare.