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Post by tomtabb on Sept 19, 2018 18:43:34 GMT -5
This verbage is in the contract (lesson learned from Sanofi): MannKind may terminate the License Agreement upon a change of control of United Therapeutics if such change of control is reasonably anticipated to result in a material reduction in net sales of Products or access to manufacturing information by a party with very competitive products or pipelines to MannKind’s products. I bet that there are other metrics in the contract that if not met, would allow MNKD out of the agreement. That's certainly an improvement, but it's pretty small one. The Sanofi contract was just awful. One thing I remember was that if MNKD h felt Sanofi wasn't doing their best for afrezza, the only option was for MNKD to file a "grievance" with some sort of grievance committee. The thing was that the majority of members of the committee were from Sanofi. There was also an audit procedure but it could be invoked only once a year and all it could do was confirm whether the numbers reported to MNKD matched the numbers actually on Sanofi's books. They couldn't challenge how those numbers were determined. |
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Post by boca1girl on Sept 19, 2018 19:02:18 GMT -5
I’m counting on the current management team to NOT repeat errors from the past. Although, I think the legal team hasn’t changed since the Sanofi days.
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Post by georgia777 on Sept 19, 2018 20:31:12 GMT -5
In cut-throat world of medicine I never hold my breath, but this seems real with UTH. Big pharma would look sad pushing anti-trust here but heck FDA looked awfully anti-afrezza last 10yrs. Shorting with big money by who knows who can't hold down revenues. I say 3 yrs them kaboom. Until then fight for every script for Afrezza, and any partners with technosphere. I say take any deal for life blood money. Deals can change when in position of power. Also, options very open after few cash infusion deals.
Money aside, the world needs rapid inhalation meds. Pulling for this more than money
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Post by prcgorman2 on Sept 19, 2018 22:16:23 GMT -5
I sure hope there are more white knight friends of Al out there who are going to give us more business. Then again maybe UT will keep giving us more business and we won't have capacity. I can't wait for a happiness problem like that. Most contracts can be renegotiated. I think complaining about terms and conditions is fair based on the Sanofi disaster (which I still suspect was engineered), but the concern mentioned here were that MNKD didn't position themselves well enough for getting the most royalty money out of the deal. Talk about armchair quarterbacking. I'd very much like to be in the position of complaining that sure, MNKD got up front development dollars and milestone payments, but the division of royalties should be better. Anyway, I like that you brought up another possible future problem which is insufficient production facilities for Afrezza and other products based on Technosphere. Not long after I invested in MNKD I did some work to understand Danbury capacity as regards typical cartridge counts per box, and boxes per prescription, and maximum potential production capacity. Now there's a problem I cannot wait to have happen! (As long as it's because of product demand anyway.) |
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