Post by liane on Oct 29, 2014 7:23:33 GMT -5
I haven't been able to confirm this...
www.bidnessetc.com/28178-heres-why-mannkind-is-up/?utm_content=buffer01c25&utm_medium=social&utm_source=plus.google.com&utm_campaign=buffer
MannKind stock is up after accepting $150 million from Sanofi as part of the two pharmas‘ ongoing collaboration
Published: October 29, 2014 at 6:39 am ESTBy: Hannah Ishmael
MNKD
MannKind Corporation (MNKD) stock rallied today after it received a $150 million upfront payment as part of its exclusive worldwide collaboration with Sanofi SA (ADR) (SNY) to develop and commercialize Affrezza (R) inhalation powder. Bidness Etc covered the details of the deal in a previous article. The drug is a new rapid-acting insulin therapy for adults with type 1 and 2 diabetes.
The payment is a positive sign for investors interested in the biotech stock due to the cash-intensive nature of its operations. The agreement with Sanofi provides MannKind $150 million, with an additional $175 million available for advanced collaboration expenses. The revenue will also be split 65% Sanofi to 35% MannKind.
Mannkind will also be eligible for $775 million in milestone payments from Sanofi, tied to the sales of Afrezza.
All this puts MannKind in a very strong cash position. This is good news because the biotech company is not expected to achieve full-year profitability till 2017 and is carrying a debt of $186.2 million as of June 30. However, due to not achieving profitability and the nature of its business, the company is likely to burn through most of its cash by 2016.
In the past, MannKind has taken to selling its common stock on the open market to raise cash. However, this has resulted in creating poor value for investors. The most favorable way for MannKind to raise cash would be through sales of Affrezza after its launch in the first quarter of 2015.
While investors have been taught a harsh lesson regarding biotech companies to not put all their eggs in one basket, in MannKind’s case this might actually be a good thing. By focusing on Affrezza, MannKind can focus its marketing.
However, products like Affrezza – an inhaler – have proven to be a hit or miss for the industry. Nevertheless, there is certainly a market for the drug, with the American Diabetes Association predicting that one in three Americans will be diabetic by 2050.
www.bidnessetc.com/28178-heres-why-mannkind-is-up/?utm_content=buffer01c25&utm_medium=social&utm_source=plus.google.com&utm_campaign=buffer
MannKind stock is up after accepting $150 million from Sanofi as part of the two pharmas‘ ongoing collaboration
Published: October 29, 2014 at 6:39 am ESTBy: Hannah Ishmael
MNKD
MannKind Corporation (MNKD) stock rallied today after it received a $150 million upfront payment as part of its exclusive worldwide collaboration with Sanofi SA (ADR) (SNY) to develop and commercialize Affrezza (R) inhalation powder. Bidness Etc covered the details of the deal in a previous article. The drug is a new rapid-acting insulin therapy for adults with type 1 and 2 diabetes.
The payment is a positive sign for investors interested in the biotech stock due to the cash-intensive nature of its operations. The agreement with Sanofi provides MannKind $150 million, with an additional $175 million available for advanced collaboration expenses. The revenue will also be split 65% Sanofi to 35% MannKind.
Mannkind will also be eligible for $775 million in milestone payments from Sanofi, tied to the sales of Afrezza.
All this puts MannKind in a very strong cash position. This is good news because the biotech company is not expected to achieve full-year profitability till 2017 and is carrying a debt of $186.2 million as of June 30. However, due to not achieving profitability and the nature of its business, the company is likely to burn through most of its cash by 2016.
In the past, MannKind has taken to selling its common stock on the open market to raise cash. However, this has resulted in creating poor value for investors. The most favorable way for MannKind to raise cash would be through sales of Affrezza after its launch in the first quarter of 2015.
While investors have been taught a harsh lesson regarding biotech companies to not put all their eggs in one basket, in MannKind’s case this might actually be a good thing. By focusing on Affrezza, MannKind can focus its marketing.
However, products like Affrezza – an inhaler – have proven to be a hit or miss for the industry. Nevertheless, there is certainly a market for the drug, with the American Diabetes Association predicting that one in three Americans will be diabetic by 2050.
