Thinking Differently...

[galileo]

For all the years we've been participating in, following, investing in the fortunes of MNKD, we're at our lowest point right now(at least with regard to Afrezza). On this board there's the full range of opinions from the ever-optimists to the permanent-bears. Tons of speculation about all aspects of the company. Lets start with what we know:

1. Afrezza seems like a valuable product.
2. Neither MNKD management, nor any other entity has proven itself capable of selling Afrezza at a commercially viable level.
3. At the current trajectory of sales there is little prospect of profitability in 2019.
4. There is a finite amount of cash and at some point, without more success from Afrezza sales, the company may find it impossible to raise capital.
5. The MNKD management team has a poor record: of communication and of achievement.
6. The first responsibility of a Board of Directors is to protect the interests of shareholders.

To introduce a sports analogy, if such were the situation with a football team, the coaching staff would be replaced and likely some in the front office as well. I think that's where we should start. The MNKD Board has been an utter failure any way you look at it. I don't care what companies they were associated with in their careers. I don't care if they love America or kick their dogs. In this situation we employ them to look out for us and they've failed. So, fire 'em. Simple. Let's be honest, we could replace the board with mannequins and do as well as we have.

Now as to management, I have nothing better to say. I start from the position of being neither fan nor hater of Mike C. How has he done? I think if one were handing out letter grades, he'd get at best a C and probably a C-. Surely, the Board's grading can't be that much different. Yet the Board pays Mike and the team like they're B+/A performers. The Board has failed here.

Afrezza may be the greatest thing to hit diabetes, but that doesn't matter if you can't sell it. Sanofi tried and failed. The contract sales force tried and failed. Now the dedicated sales force has tried and failed. Maybe it can't be sold. Maybe it won't work. I don't know the answer to selling Afrezza, but neither does anyone associated with MNKD. So, jettison the product to someone else. Presumably, there's still some value there. Management has fallen in love with product (as have many of us), but maybe that love with never be returned. The Board should force a sale. To permit MNKD management to pursue some new sales strategy in 2019 is foolish. Of course, management doesn't want to give up and have that on their resume, but this is why there's a Board. Another failure of the Board.

This really isn't that difficult to figure out. We need a new Board. Now. They've had several seasons to win games. They've been associated with winning teams in their past. But, they've repeatedly failed our team. We should remove them this May.

[uvula]

I'm playing poker.
The cards I am holding in my hand are terrible.
If I give my cards to someone else, they will still be terrible.

[MnkdWASmyRtrmntPlan]

You are correct, Galileo, you do think differently than we do on Proboards.
1. Afrezza doesn't just "seem like", it "IS" a tremendously valuable product.
2. Sanofi did a good job selling Afrezza ... until they stopped. MNKD had a huge challenge to start their own commercializing department, and on a strict budget, but they have done a remarkable job and are on track to profitability in 2020.
3. No matter how fast some investors want to make money, nobody ever said MNKD will be profitable in 2019. But "I think" they should be by 2020.  This is almost completely dependent on the speed with which it makes SOC, and on insurance improvements.  If it makes SOC early in the year, all bets are off, and it may indeed become profitable in 2019.
4. With the UT and offering proceeds, there could currently be enough cash to get MNKD through 2019. By then, sales will be sufficient to provide more bargaining power for funding to the breakeven point in 2020.
5. The current MNKD management team is great. Communication of this offering cannot even be discussed until after Mike explains it next Friday.
6. OK.

Proboards posters know what a tremendous job Mike has done this year and previous threads have summarized his accomplishments.
Afrezza is the greatest thing for diabetes, and MNKD is working effectively toward making it the best selling insulin, but that takes time. Sanofi did not try and fail - they started successfully and then stopped. Contract sales was our stepping stone. Our current sales is doing a fine job considering Afrezza's absence from SOC and lack of insurance payors. Mike is making advances in those and other areas. Mike knows what he is doing. If he needs to partner, he will. If he doesn't, then he will do it alone, and we shareholders will get to keep ALL of the profits going forward FOREVER (until we sell). If we partner, then the partner keeps a portion of the proceeds forever - and possibly a MAJORITY of the proceeds. I am quite comfortable to have a slower start if I am able to keep ALL of the profits that MNKD will be generating. 10 years from now, the magnitude of gains could be microsoft or amazon-like. Postponing gains for another year is well worth that. Besides, changing sales in any way would cause a transition delay that could possibly/probably not accelerate profit in 2019 anyway.

Yes, members of the board are voted on in the Spring. All investors can vote as they see fit.  Perhaps we can start a thread at that time to review each member's merits.

I suggest leaving this thread wither on the vine. It would probably get activity on Yahoo or ST, but it's pretty worthless on Proboards.

[brotherm1]

I totally agree with everyhtimg you just said

[phantomfj]

6. The first responsibility of a Board of Directors is to protect the interests of the COMPANY

I am an investor, not a trader of this company.......far too many company execs enrich their pockets by short term measures to meet their compensation goals, not by looking out by the company itself.....one of the best examples is GE, but there are far too many of them.
I expect them to do the same as my outlook, short term pain is acceptable for long term gain....we as a society expect immediate gratification and whine if we don't get it, and it is never OUR fault....all of these whiz kid "experts" on this board should start up their own companies and run them as they see fit.
Of course I am not thrilled with the stock performance, but I did my due diligence before investing, I will find out whether I am right or wrong, but IT WAS MY CHOICE AND DECISION......
OK,. flame away if it makes you feel better!

[joeypotsandpans]

Dec 30, 2018 12:27:16 GMT -5 uvula said:

I'm playing poker.
The cards I am holding in my hand are terrible.
If I give my cards to someone else, they will still be terrible.

Most successful poker players I know don't play the cards, they play the other players

[sayhey24]

Galileo - "This really isn't that difficult to figure out. We need a new Board" and "Sanofi tried and failed" IMO points to your misunderstanding of the situation.

Sanofi under Brandicourt never tried but rather undermined afrezza. Knowing that most Lantus sales come from T2s and treating T2s early with afrezza they will not progress to needing a basal, Sanofi had a decision to make. Steve Schwartz got $250M and went of to start Onduo and Brandicourt took the safe road and protected the Lantus franchise.

To sell into the diabetes market the drug needs to be part of the standards of care. You can have all the sales guys you want and all the TV commercials burning cash but until its front and center in the SOC you are only going to have a niche drug. If Sanofi tried, they would have done the studies to support SOC changes and then pressured the community.

Mike is on the right track with Dr. Kendall. While not yet earth shattering he has been able to get some SOC changes for this year. I am not sure anyone could do a better job than Dr. Kendall in getting SOC changes made.

Mike gets all the credit for getting Dr. Kendall to MNKD. Maybe it took him a year or so to figure things out but given the hand he was dealt he has been an A performer as the lights are still on and MNKD's prospects of making it are increasing every day.

[mnholdem]

Also thinking differently, a small RLS card has been played but I think the big RLS card is still in Mike's hand.  I've always thought that Andrea Leones-Bay leaving MannKind to work for Receptor was a big clue to Receptor's future. Why would she leave her years of work developing Technosphere for a brand new startup? Andrea is now developing cannabis-based pharmaceuticals and she continues to utilize the Technosphere delivery platform. I've often wondered whether MannKind is planning some future M&A action with Receptor. 

Cannabis stock is hot and, since precision pharmaceutical-grade cannabis drugs with FDA approval are virtually non-existent, Receptor's API family has the potential be quite lucrative. Arguably, it's the precision dosing of TS that makes any RLS TS-drug more likely to gain medical acceptance than the "hit or miss" (pun intended) profile of oral, liquid and even larger-molecule pulmonary carriers. 

[mnkdfann]

Dec 31, 2018 10:50:43 GMT -5 mnholdem said:

Also thinking differently, a small RLS card has been played but I think the big RLS card is still in Mike's hand.  I've always thought that Andrea Leones-Bay leaving MannKind to work for Receptor was a big clue to Receptor's future. Why would she leave her years of work developing Technosphere for a brand new startup? Andrea is now developing cannabis-based pharmaceuticals and she continues to utilize the Technosphere delivery platform. I've often wondered whether MannKind is planning some future M&A action with Receptor. 

Cannabis stock is hot and, since precision pharmaceutical-grade cannabis drugs with FDA approval are virtually non-existent, Receptor's API family has the potential be quite lucrative. Arguably, it's the precision dosing of TS that makes any RLS TS-drug more likely to gain medical acceptance than the "hit or miss" (pun intended) profile of oral, liquid and even larger-molecule pulmonary carriers. 

In an old FAQ, Mannkind insisted her move to RLS was her own, in no way coordinated by Mannkind, etc.

I suppose they could have been stupidly and unwisely misleading investors, but I would hope not.

www.mannkindcorp.com/Collateral/Documents/English-US/MNKD%202%203%2016%20Investor%20Call%20FAQ%20v2%209%2016%20FINAL.pdf

[slugworth008]

Dec 30, 2018 11:35:19 GMT -5 galileo said:

For all the years we've been participating in, following, investing in the fortunes of MNKD, we're at our lowest point right now(at least with regard to Afrezza). On this board there's the full range of opinions from the ever-optimists to the permanent-bears. Tons of speculation about all aspects of the company. Lets start with what we know:

1. Afrezza seems like a valuable product.
2. Neither MNKD management, nor any other entity has proven itself capable of selling Afrezza at a commercially viable level.
3. At the current trajectory of sales there is little prospect of profitability in 2019.
4. There is a finite amount of cash and at some point, without more success from Afrezza sales, the company may find it impossible to raise capital.
5. The MNKD management team has a poor record: of communication and of achievement.
6. The first responsibility of a Board of Directors is to protect the interests of shareholders.

To introduce a sports analogy, if such were the situation with a football team, the coaching staff would be replaced and likely some in the front office as well. I think that's where we should start. The MNKD Board has been an utter failure any way you look at it. I don't care what companies they were associated with in their careers. I don't care if they love America or kick their dogs. In this situation we employ them to look out for us and they've failed. So, fire 'em. Simple. Let's be honest, we could replace the board with mannequins and do as well as we have.

Now as to management, I have nothing better to say. I start from the position of being neither fan nor hater of Mike C. How has he done? I think if one were handing out letter grades, he'd get at best a C and probably a C-. Surely, the Board's grading can't be that much different. Yet the Board pays Mike and the team like they're B+/A performers. The Board has failed here.

Afrezza may be the greatest thing to hit diabetes, but that doesn't matter if you can't sell it. Sanofi tried and failed. The contract sales force tried and failed. Now the dedicated sales force has tried and failed. Maybe it can't be sold. Maybe it won't work. I don't know the answer to selling Afrezza, but neither does anyone associated with MNKD. So, jettison the product to someone else. Presumably, there's still some value there. Management has fallen in love with product (as have many of us), but maybe that love with never be returned. The Board should force a sale. To permit MNKD management to pursue some new sales strategy in 2019 is foolish. Of course, management doesn't want to give up and have that on their resume, but this is why there's a Board. Another failure of the Board.

This really isn't that difficult to figure out. We need a new Board. Now. They've had several seasons to win games. They've been associated with winning teams in their past. But, they've repeatedly failed our team. We should remove them this May.

  Good sports analogy. Spurrier = Fired from the Redskins, Saban - left the Dolphins before they fired him. Both were/are great in College but not the Pro's - We need Pro coaches on the board - and the sooner the better though it will most likely not happen. JHMO

[slugworth008]

Dec 30, 2018 14:02:48 GMT -5 MnkdWASmyRtrmntPlan said:

You are correct, Galileo, you do think differently than we do on Proboards.
1. Afrezza doesn't just "seem like", it "IS" a tremendously valuable product.
2. Sanofi did a good job selling Afrezza ... until they stopped. MNKD had a huge challenge to start their own commercializing department, and on a strict budget, but they have done a remarkable job and are on track to profitability in 2020.
3. No matter how fast some investors want to make money, nobody ever said MNKD will be profitable in 2019. But "I think" they should be by 2020.  This is almost completely dependent on the speed with which it makes SOC, and on insurance improvements.  If it makes SOC early in the year, all bets are off, and it may indeed become profitable in 2019.
4. With the UT and offering proceeds, there could currently be enough cash to get MNKD through 2019. By then, sales will be sufficient to provide more bargaining power for funding to the breakeven point in 2020.
5. The current MNKD management team is great. Communication of this offering cannot even be discussed until after Mike explains it next Friday.
6. OK.

Proboards posters know what a tremendous job Mike has done this year and previous threads have summarized his accomplishments.
Afrezza is the greatest thing for diabetes, and MNKD is working effectively toward making it the best selling insulin, but that takes time. Sanofi did not try and fail - they started successfully and then stopped. Contract sales was our stepping stone. Our current sales is doing a fine job considering Afrezza's absence from SOC and lack of insurance payors. Mike is making advances in those and other areas. Mike knows what he is doing. If he needs to partner, he will. If he doesn't, then he will do it alone, and we shareholders will get to keep ALL of the profits going forward FOREVER (until we sell). If we partner, then the partner keeps a portion of the proceeds forever - and possibly a MAJORITY of the proceeds. I am quite comfortable to have a slower start if I am able to keep ALL of the profits that MNKD will be generating. 10 years from now, the magnitude of gains could be microsoft or amazon-like. Postponing gains for another year is well worth that. Besides, changing sales in any way would cause a transition delay that could possibly/probably not accelerate profit in 2019 anyway.

Yes, members of the board are voted on in the Spring. All investors can vote as they see fit.  Perhaps we can start a thread at that time to review each member's merits.

I suggest leaving this thread wither on the vine. It would probably get activity on Yahoo or ST, but it's pretty worthless on Proboards.

  They had better not even THINK of another R/S or MNKD is finished. All hands on deck to make certain that doesn't happen. And this offering sure as heck doesn't inspire any confidence - Lucy's got some splain'n to do this Friday....and it better be good.

[galileo]

So, I see all the excuses and explanations, but I don't see wins. "Mike's gonna make it happen..., Their working hard..., There's more to come...," Look people, its all about wins. When you tell the world you'll do $25-30 million in revenue, revise it downward to $22-25 and then miss that by a mile, YOU'VE FAILED. YA LOST BIG TIME. How can you guys defend that?!

After listening to the conference call, I agree Mike's a good talker. He'd have to be to get where he is, but he's failed badly in 2018. Can anyone on this board refute that?

Also, think about this: 2018 wasn't Mike's first swing at the plate (yes, a different sports analogy). He was brought in following Sanofi's exit. He convinces everyone a contract sales force is all we need. Oops. Strike one. No, we need dedicated MNKD reps. Oops. Strike two. No we need a dedicated force with DTC advertising. Oops. Strike three. So, now, of course all we need is 2019 is a dedicated sales force concentrated in certain productive markets with MORE DTC. We'll be saying Oops, Strike four in a few months. The game only allows for 3 strikes people.

[galileo]

Dec 30, 2018 12:27:16 GMT -5 uvula said:

I'm playing poker.
The cards I am holding in my hand are terrible.
If I give my cards to someone else, they will still be terrible.

Then quit the game

[mytakeonit]

That's not poker ... sounds more like "go fish".

[galileo]

Jan 5, 2019 1:19:52 GMT -5 mytakeonit said:

That's not poker ... sounds more like "go fish".

Right on!