The company still believes its treatment has potential but given the current cynicism over the inhaled insulin market has decided not to search for a partner at this time.
In its statement MannKind said: "At this time, we believe that we will be unable to achieve an appropriate valuation for Technosphere Insulin until Phase III data are available that confirm our belief in the safety and efficacy of Technosphere Insulin."
MannKind is relying upon good Phase III data for their inhaled insulin treatment to reassure investors, the pharmaceutical community and the public of the safety of their product.
The trial is due to finish later this year but the concern is that the credibility of inhaled insulin is damaged beyond repair.
Following the news about Exubera, MannKind's share price fell by 60 per cent, with William Tanner, an analyst with Leerink Swann & Co, saying "we no longer think there will be a major market for inhaled insulin".
However, it appears MannKind is ready to weather the storm and has the resources to do so. In March MannKind made a conference call to analysts to communicate its quarter four 2007 results.
The company stated that through financing and loans it had money available to fund its operations until the end of 2009 and cover the capital costs for the expansion of its Danbury, Connecticut manufacturing facility which is due to be completed this summer.
However, the conference call to analysts took place prior to MannKind calling off its search for a partner for Technosphere so the effect of this development on the company's finances is not yet known.
It appears that the loans and financing deals will secure the short term security of the company and the new manufacturing facility but the long term future is less certain.
The future of MannKind is reliant upon the success of Technosphere, with the financial advisory company Merrill Lynch describing the treatment as the "sole value driver" of the company.
Many financial analysts have already written off the inhaled insulin market following the news about Exubera, with Natixis Bleichroeder analyst Jon LeCroy describing the development "as an absolute disaster for MannKind".
However, MannKind believe its Technosphere Insulin has been more thoroughly tested than Exubera, with a two-year carcinogenicity study in rats showing that the product was well tolerated after daily inhalations for 104 consecutive weeks.
If MannKind can overcome this latest setback the inhaled insulin market, once viewed as a field for blockbuster drugs, will be its for the taking.
Unfortunately for MannKind the credibility of inhaled insulin has taken a battering over the last six months and the pressure is on it to sway opinion if Technosphere Insulin is to prosper.
