MannKind CEO Resigns
November 20 2015 - 10:20AM
Dow Jones News
MannKind Corp. Chief Executive Officer Hakan Edstrom has
resigned, the biopharmaceutical company said Friday, less than a
year after he took the helm.
Founder and executive chairman Alfred Mann has been appointed
interim CEO, effective immediately, while the board searches for a
successor to Mr. Edstrom.
The resignation comes amid a steep drop in the company's stock,
fueled by flagging sales of MannKind's key diabetes drug Afrezza.
In the wake of a disappointing third-quarter earnings report,
shares have tumbled 27% this month. This year, the stock has erased
more than half its value.
In efforts to stop the bleeding, the company this month said it
would dually list on the Tel Aviv stock exchange, ensuring several
large index funds would be required to scoop up shares.
Afrezza, an inhaled form of insulin that won regulatory approval
in 2014, was eagerly awaited by many diabetics and investors after
MannKind failed at two earlier attempts to pass regulatory muster.
MannKind launched the drug in August. For the lackluster
third-quarter Afrezza sales, Mr. Edstrom pointed to delayed
insurance company reimbursements as one factor.
In its news release Friday, MannKind didn't elaborate on Mr.
Edstrom's resignation. The CEO was appointed in January as Mr. Mann
stepped aside to become executive chairman. Mr. Edstrom joined the
company in 2001 and previously served as chief operating
officer.
MannKind shares fell 5.8% in premarket trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 20, 2015 10:05 ET (15:05 GMT)
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