|
|
Post by dreamboatcruise on Aug 7, 2017 17:11:58 GMT -5
Does anyone know off top of head what value the Danbury plant has on the balance sheet?
Just curious about the option of sale and lease back.
|
|
|
|
Post by liane on Aug 7, 2017 17:26:17 GMT -5
The plant is very specialized; don't know if selling is feasible / cost effective.
|
|
|
|
Post by dreamboatcruise on Aug 7, 2017 17:44:26 GMT -5
The plant is very specialized; don't know if selling is feasible / cost effective.
Even just the land and building? |
|
|
|
Post by promann on Aug 7, 2017 17:48:59 GMT -5
Does anyone know off top of head what value the Danbury plant has on the balance sheet? Just curious about the option of sale and lease back. I've been there it's state of the art and practically new. The location is prime right on rail road tracks that could be utilized not sure if they are or not. Plenty of room for expansion. If I was to take an educated guess of its value I would say 50-60 million ball park |
|
|
|
Post by dreamboatcruise on Aug 7, 2017 17:52:01 GMT -5
Too bad pledged as collateral. That's what I had forgotten.
|
|
|
|
Post by lennymnkd on Aug 7, 2017 17:56:12 GMT -5
Could it be : lease for the time being , part of a evenual buyout package down the road ..
|
|
|
|
Post by agedhippie on Aug 7, 2017 18:02:53 GMT -5
Could it be : lease for the time being , part of a evenual buyout package down the road ... It's already mortgaged. The purchaser would need to buy out the Deerfield mortgage which would swallow any payment. Deerfield would be happy though. |
|
|
|
Post by therealisaching on Aug 7, 2017 18:30:25 GMT -5
Could it be : lease for the time being , part of a evenual buyout package down the road ... It's already mortgaged. The purchaser would need to buy out the Deerfield mortgage which would swallow any payment. Deerfield would be happy though. Deerfield could act like the way they are now. Some payment + some deferred. They could always accept a 2nd position in the building for some of the proceeds of a sale leaseback. That it was even dangled on the call speaks to the possibility. |
|
|
|
Post by dreamboatcruise on Aug 7, 2017 18:37:22 GMT -5
It's already mortgaged. The purchaser would need to buy out the Deerfield mortgage which would swallow any payment. Deerfield would be happy though. Deerfield could act like the way they are now. Some payment + some deferred. They could always accept a 2nd position in the building for some of the proceeds of a sale leaseback. That it was even dangled on the call speaks to the possibility. Seems as if they would have to be willing to give up their collateral position in the building. What would having a 2nd position in a building owned by someone other than MNKD mean? |
|
|
|
Post by agedhippie on Aug 7, 2017 18:48:47 GMT -5
Deerfield could act like the way they are now. Some payment + some deferred. They could always accept a 2nd position in the building for some of the proceeds of a sale leaseback. That it was even dangled on the call speaks to the possibility. Seems as if they would have to be willing to give up their collateral position in the building. What would having a 2nd position in a building owned by someone other than MNKD mean? It's impossible. MNKD cannot mortgage a building they do not own. Therefore Deerfield would be settling for a cash payment now and taking the rest as an unsecured loan since the building could no longer be used to secure the loan as MNKD would not own it.. |
|
|
|
Post by matt on Aug 8, 2017 6:34:46 GMT -5
The existing security interest aside (which basically prevents the company from sell most of its remaining assets) Danbury is not worth anything close to replacement value. Most pharma plant buildings are relatively cheap to construct as they are just a "big box" with a high roof and nothing inside. Fundamentally, they are not much different from what gets built in a shopping mall to hold tenants like Best Buy.
What is special about pharma plants is the production rooms built inside the box. These production suites are where the money is spent, and each room is custom designed for a particular part of the production process, and there is considerable variability between drugs and manufacturers. The biggest cost is the special air handling which is normally installed between the roof and the ceiling of the production space (that is why the box has such a high roof). Chances are very high that the production process MNKD has designed for Afrezza would need to be different for another pharma manufacturer who would take over the building and immediately demolish the rooms inside, starting from scratch with their own design. While that seems crazy, once you have an FDA approved production process the cost to redesign the process and go through validation all over is more expensive than constructing some new walls inside the box. For the same reason, the production equipment, even if relatively new and lightly used, does not have much value to produce anything except Afrezza.
The land and building is basically worth what similar buildings go for in Danbury. Production equipment has a salvage value of 10-15 cents per dollar, and the production spaces may have negative value (because they have to be removed to make way for a new suite). If by some happy coincidence a new owner is happy with the layout and size of the production suites then there may be a bit of value their, especially in the air handling, but usually that is not the case.
|
|
|
|
Post by promann on Aug 8, 2017 6:51:28 GMT -5
The existing security interest aside (which basically prevents the company from sell most of its remaining assets) Danbury is not worth anything close to replacement value. Most pharma plant buildings are relatively cheap to construct as they are just a "big box" with a high roof and nothing inside. Fundamentally, they are not much different from what gets built in a shopping mall to hold tenants like Best Buy. What is special about pharma plants is the production rooms built inside the box. These production suites are where the money is spent, and each room is custom designed for a particular part of the production process, and there is considerable variability between drugs and manufacturers. The biggest cost is the special air handling which is normally installed between the roof and the ceiling of the production space (that is why the box has such a high roof). Chances are very high that the production process MNKD has designed for Afrezza would need to be different for another pharma manufacturer who would take over the building and immediately demolish the rooms inside, starting from scratch with their own design. While that seems crazy, once you have an FDA approved production process the cost to redesign the process and go through validation all over is more expensive than constructing some new walls inside the box. For the same reason, the production equipment, even if relatively new and lightly used, does not have much value to produce anything except Afrezza. The land and building is basically worth what similar buildings go for in Danbury. Production equipment has a salvage value of 10-15 cents per dollar, and the production spaces may have negative value (because they have to be removed to make way for a new suite). If by some happy coincidence a new owner is happy with the layout and size of the production suites then there may be a bit of value their, especially in the air handling, but usually that is not the case. On this I agree with you. I believe it cost 200 million to build to there specifications. As a a resale value it will not be to another companies design that's why I would value the building and land around 50 - 60 million. |
|
|
|
Post by liane on Aug 8, 2017 6:58:03 GMT -5
matt, Thank you for better stating what I was implying earlier.
|
|
|
|
Post by thall on Aug 8, 2017 8:40:49 GMT -5
The existing security interest aside (which basically prevents the company from sell most of its remaining assets) Danbury is not worth anything close to replacement value. Most pharma plant buildings are relatively cheap to construct as they are just a "big box" with a high roof and nothing inside. Fundamentally, they are not much different from what gets built in a shopping mall to hold tenants like Best Buy. What is special about pharma plants is the production rooms built inside the box. These production suites are where the money is spent, and each room is custom designed for a particular part of the production process, and there is considerable variability between drugs and manufacturers. The biggest cost is the special air handling which is normally installed between the roof and the ceiling of the production space (that is why the box has such a high roof). Chances are very high that the production process MNKD has designed for Afrezza would need to be different for another pharma manufacturer who would take over the building and immediately demolish the rooms inside, starting from scratch with their own design. While that seems crazy, once you have an FDA approved production process the cost to redesign the process and go through validation all over is more expensive than constructing some new walls inside the box. For the same reason, the production equipment, even if relatively new and lightly used, does not have much value to produce anything except Afrezza. The land and building is basically worth what similar buildings go for in Danbury. Production equipment has a salvage value of 10-15 cents per dollar, and the production spaces may have negative value (because they have to be removed to make way for a new suite). If by some happy coincidence a new owner is happy with the layout and size of the production suites then there may be a bit of value their, especially in the air handling, but usually that is not the case. On this I agree with you. I believe it cost 200 million to build to there specifications. As a a resale value it will not be to another companies design that's why I would value the building and land around 50 - 60 million. Google street view of Danbury plant: www.google.com/maps/place/1+Casper+St,+Danbury,+CT+06810/@41.3939896,-73.4381237,3a,75y,190.92h,85.93t/data=!3m6!1e1!3m4!1sN7oC0h_bB_dWPq89SNPSBg!2e0!7i13312!8i6656!4m5!3m4!1s0x89e7ff1242b123e9:0xf64ed0c7e8444267!8m2!3d41.3940984!4d-73.4378114
If that's all there is, I don't see a 50-60 million dollar property.
|
|
|
|
Post by sportsrancho on Aug 8, 2017 9:51:16 GMT -5
Then why was it brought up?
|
|
