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Post by gamblerjag on Aug 11, 2014 1:27:28 GMT -5
press release says "exclusive" .. SO there will not be more than one Company Just SNY on a global scale.. Isn't it hard not to believe that SNY will purchase MNKD in the next couple of years.
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Post by marketpanda on Aug 11, 2014 1:35:48 GMT -5
Here's the deal... with $150 million up front, that basically will bring them close to cash neutral/potentially cash positive based on 2013 revenues. Up to an additional $175 million to cover additional expenses moving forward. No doubt milestone payments are going to be at each phase of EMA process and commercial release in US and Europe meaning all payments should be completed within the next year. Lantus loses patent protection next year in February and this could become Sanofi's primary push for diabetic care, which globally sold close to $7 billion last year.
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Post by babaoriley on Aug 11, 2014 1:36:02 GMT -5
Great news about a large company like Sanofi, but terms don't seem as good as I would of expected? Anyone else agree?? Only $150M upfront and 65% goes to Sanofi and 35% to MNKD? There is a potential to receive another $775M. MNKD invested 10 years and 2 Billion to only receive $150M and keep 35% share of sales? Is anyone else slightly disappointed? Gotta be honest, I am a bit. Not sure if the market will react that much (HOPING I AM WRONG)! The split is pretty much what I've seen in the past, and it's what most posters that seem to have the most experience and knowledge believed. While that may not help your disappointment, I hope it contains it some. The upfront $, well, I agree, would have liked to have seen a bit more ($250 million has a particularly nice ring to it), but I think MNKD is pretty confident of reaching the milestones. How 'bout that PGA championship!!
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Post by spiro on Aug 11, 2014 1:37:34 GMT -5
One thing is certain, MNKD has just become a lot safer to own. Of course the shorts will try to spin this deal in a negative way, but they are going to look real stupid trying to diminish this deal. MNKD gets the worldwide big company name and keeps 35%. That will be hard to spin negatively. The upfront money is disappointing, but the investment safety aspect has just been fortified by solid gold. i think the institutions will be very happy with this deal.
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Post by marketpanda on Aug 11, 2014 1:37:41 GMT -5
B/O by EOY '15 for $15 billion and mid teens royalty payout for Technosphere... They want the whole thing w/IP $50 billion +... But yea, might end up being the better financial decision.
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Post by jpg on Aug 11, 2014 1:39:14 GMT -5
:-XJpg- tomorrow I will be sober and we shall battle with our words. But for now, the buzz is wining. I'll share a few of my favorite places in France while you visit Sanofi in person. JPG PS: the wine will have to wait a bit for me as I just open a bottle of excellent Scotch. To bad I still have to work tomorrow...
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Post by ashiwi on Aug 11, 2014 1:41:27 GMT -5
Baba, 150 million plus 325 million up front as part of mnkd's 35% cut upfront . Plus milestone payments which can bring the total to over a $billion.
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Post by babaoriley on Aug 11, 2014 1:45:59 GMT -5
"but the investment safety aspect has just been fortified by solid gold. i think the institutions will be very happy with this deal." Well said, Spiro!
I do agree that some large players will begin entering now, and may likely start to buy a bit at a time, like a million shares here, and another million there.
We're about to get a short report, will be interesting to compare the one we're about to get (as of July 31) with the one we'll get reporting short interest as of 8/15. Some panicky shorts will be covering tomorrow under cover of negative articles, others lie in wait to short again at $12 or so. Hope we get there so we can accommodate them!
Hoping for a wonderful call tomorrow morning!
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Post by 4allthemarbles on Aug 11, 2014 1:46:48 GMT -5
I'm in Puerto Rico all week. I can tell you about the wine. It's almost as good as being able to drink it yourself....
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Post by babaoriley on Aug 11, 2014 1:49:57 GMT -5
Baba, 150 million plus 325 million up front as part of mnkd's 35% cut upfront . Plus milestone payments which can bring the total to over a $billion. Don't see it, Ashiwi, I do see $175 mil to cover expenses going forward, so $325 million total committed up front, if not all paid up front. But what's a few hundred million once we start seeing TV ads and sales begin, then accelerate as the quarters pass.
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Post by 4allthemarbles on Aug 11, 2014 1:51:09 GMT -5
Hey everyone- it's almost 3 am here. I am goona hit the sack. But before I go, just wanted to wish everyone good luck tomorrow!
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Post by jpg on Aug 11, 2014 1:56:04 GMT -5
"but the investment safety aspect has just been fortified by solid gold. i think the institutions will be very happy with this deal." Well said, Spiro! I do agree that some large players will begin entering now, and may likely start to buy a bit at a time, like a million shares here, and another million there. We're about to get a short report, will be interesting to compare the one we're about to get (as of July 31) with the one we'll get reporting short interest as of 8/15. Some panicky shorts will be covering tomorrow under cover of negative articles, others lie in wait to short again at $12 or so. Hope we get there so we can accommodate them! Hoping for a wonderful call tomorrow morning! This phase of the game is when institutions often step up their buying. Sanofi gives cover to institutional buyers by takes away the career risk of 'betting on biotech'. I don't know what shorts will come up with but I am certain dips will quickly get bought. I haven't bought for a long time but certainly will if for some bizarre reason Mannkind drops tomorrow. What will be the opening and closing price tomorrow? Don't know. What will be the closing price in a year and in 2 years? I have a pretty good idea it will be much much higher then tomorrow... JPG
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Post by mapotofu10 on Aug 11, 2014 2:01:48 GMT -5
Don't knock it - the French make good wine. And their cooking is great too. OOps I was replying about the French
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Post by irrationalexuberance on Aug 11, 2014 2:10:42 GMT -5
cpYou called it with Sanofi. Interesting that Yahoo wouldn't accept your post a couple weeks ago about Sanofi as the most likely candidate. I think everyone is wondering about this post of yours several hours ago: "BD - If you dig enough into the MannKind Corporation website, you will find a surprise!"Did you see something ahead of time that tipped you off? If so, where/how did you find it? Hope you don't mind sharing! IE
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Post by babaoriley on Aug 11, 2014 2:18:30 GMT -5
One more thing - big kudos to MNKD, Deerfield, Greenhill and Sanofi for keeping this news confidential - no hint of it in the market on Friday (didn't check option trading, though), but not a wave in the share price! Good going!
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