Forms 4

[longliner]

May 17, 2019 19:26:03 GMT -5 mannmade said:

ktm, I generally try to stay out of the discusssion on the overall quality of leadership and why they can't seem to get scripts up as fast as we would all like. I have actually talked to doctors before, (Cedars Sinai, City of Hope, UCLA, Several Clinics, Private Practice, etc...) and with those I have personal relationships with I have had success (over time) but with those I have not, Afrezza has been met with great skepticism including one endo I would considered to be one of the top 10 in the country if not the world. Another Endo from UCLA told me in response to my telling him that he could get T1's into a range of 5.5 to 6.2 on Afrezza with few if any hypos that he thought I was lying to him. So yes they are hesistant to believe and quite skeptical. (This was about 2 to 3 years ago.)

The personal relationships allowed me over time to send info pieces, follow up and gradually have them try on one or two patients and then more. Unfortunately, I did not get the time with those that I did not have personal relationships with beyond the first or second conversations.

However, I have to agree that a lack of communication and transparency would better help the mood of many investors who feel that we have been left in the dark about our investment and make decisions about what to do with a lack of information. I am speifically talking about some of the following:

1. Expectations for break even on revenue not just Afrezza, but if also includes Trep T
2. Status of Brazil
3. Revised India timeline
4. Expected dates to file EU, Britain, Canada and Mexico
5. Status on DTC and Eagle Pharmacy
6. Status on what publications and when
7. Status on partner opportunities
8. New (outside) molecule
9. Expectations for RLS (not just will have more later this year)
10. Marketing Plan for next 12 months: social, events, commercials
11. Discussions on SOC conversations and expectations

I am sure there is more that I have not listed but I think you get the idea. I accept that this will take time, however I would like to see the transparency we were promised when MC took over. Overall he is likely doing as good a job as one can under the circumstances but given the situation that many find themselves in, I think we would all feel a bit better with more information. I do realize there may be some things that can't be discussed and that is fine if we are told just that, as other discussions may be taking place. But one of the most important discussions for me at the moment is the one mnkd has with its shareholders.

Thanks for this post. Once the most important ingredient is added, (trust) this should rapidly return to fair value.

[mannmade]

May 17, 2019 21:27:11 GMT -5 radgray68 said:

May 17, 2019 20:44:48 GMT -5 mannmade said:

Not specific dates time frames

Understood. But lets say ongoing discussions lead Mike to believe we will file EU and Canada ourselves in 2H 2019, but before we file, in October or November say, talks turn serious with a potential partner who will do it for us, that deal would put filing on hold until that agreement is hammered out, likely several months. He has then “egregiously lied to shareholders and mislead poor investors causing irreparable harm... blah blah blah” as the lawyers would claim.
The evil of holding shareholders “in the dark” is far less harmful to the company than full disclosure on what are essentially fluid timelines until they’re not.
Just one small example, but unfortunately you have to look at it through the lens of a hungry, ambitious ambulance chaser. It’s playing to the lowest common denominator but it’s far safer that way.

No he can just inform shareholders instead of staying quiet and leaving us to wonder what happened and when it might if ever happen. To paraphrase, “We can handle the truth!”

[ktim]

Well said Mannmade.

Companies disclose future plans all the time despite there always being risks of frivolous shareholder lawsuits. Revenue guidance is given... other financial performance metric guidance, pipeline time frames, estimates of when new products or services will arrive, etc. I believe MNKD has given guidance on expectations for Mexico and Canada filings, proving that they don't feel doing so poses some big risk.

The type of disclosure we're looking for isn't "we will close a marketing partnership in Qx", rather it is "We've concluded that more marketing resources are needed than our capital structure will allow for the foreseeable future thus we are attempting to find a marketing partner to take on Afrezza in the U.S. and there appear to be viable options" or "while we are looking for a U.S. marketing partner, it currently appears that there are no viable options meeting the criteria we feel is necessary" or "Even though a US marketing partner would likely be available, we are not actively seeking one because we think our current internal marketing execution will generate the most value for shareholders." However, on this issue, the discussion is instead controlled by MK who has basically postulated the scenario that one or more partnerships that would unlock shareholder value are currently available and if it isn't done soon it is because management lacks the judgement to make the right decision.

Any of this type of information would be accompanied by the safe harbor disclaimer.

Additionally, we'd like some clarity on things that aren't predictions for the future.  What about some info on DTC to date.  Info on performance of TV adverts both in the earlier round and the most recent.  Maybe some better info on prescribing doctors.  They show a big and growing number but it seems that includes many docs that may write one or two (perhaps only for patients that know of Afrezza themselves and absolutely demand it) and not really actively choosing Afrezza.  I'd love to see them have a regularly updated metric showing docs who prescribe above some threshold that would indicate they are incorporating Afrezza in their practice standard of care.

I suspect it has nothing to do with lawsuit risks why they are not forthright on such things, but rather that some of what they would be disclosing is not particularly encouraging at this point.  But I still feel being forthright, and building "trust" is the right thing to do.