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Post by radgray68 on Jul 13, 2019 16:45:51 GMT -5
The CEO of MannKind (Castagna, MC) has two top objectives: 1. Increase Afrezza retention rate 2. Increase Afrezza scripts rate For the last two years, the MC has failed to deliver on these top objectives.
Granted MannKind botched the Afrezza clinical trials, which has resulted in Endos reluctant to prescribe Afrezza. If Afrezza clinical trials had resulted in a superior label, scripts and retention would not be a problem. MNKD would be profitable by now. MannKind needs a CEO with prior insulin experience and Endo connections to have a run at the top two objectives. MC has great school degrees; financial (Wharton) and a Pharma PhD. However these degrees and his past work experience have not prepared him to achieve progress on MannKind's top two objectives. In two years there has been no progress that I can see. Granted I do not have numbers on Afrezza retention rate, but the Symphony weekly scripts are (painfully) pathetic for the last 2.5 years. I am guessing that the DTC scripts, when added to Symphony scripts only average 5.3 scripts per week increase, which will not result in Afrezza profits covering the burn rate for many years. My guess is that DTC scripts are cannibalizing Symphony weekly scripts. Indeed, Symphony plots of weekly scripts shows a drop (discontinuity) when the DTC campaign was launched early this year. radgray68 said “The problem with our stock is, in the minds of Wall Street, Mannkind has absolutely NO credibility.” My answer is that increasing Afrezza retention and scripts can quickly give MannKind Wall Street credibility. So we need a CEO that will deliver on the two top priorities. Failed to deliver? Numbers are up steady on all key metrics. Haven't gone parabolic yet but the base is building. You are correct, it's been 2 & 1/2 years. But it's going to take another 2 & 1/2. That's just a fact. |
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Post by ryster505 on Jul 13, 2019 16:49:56 GMT -5
In my honest opinion, Mike deserves nothing until he guarantees us 1000% that another Reverse Split is completely out of the equation. Sorry but that's "mytakeonit"
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Post by babaoriley on Jul 13, 2019 16:54:44 GMT -5
My world is gray, varying shades, but gray. Mike’s compensation is too high - that’s a black and white one for me.
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Post by mytakeonit on Jul 13, 2019 16:56:27 GMT -5
As I said before, MNKD isn't only about Afrezza. Wait for the quarterly CC and look at the total picture. Or, sell your shares so I can buy them.
BTW, if MNKD's pps is $100+ ... is Mike's salary too high? The BOD set his salary ... go grumble about them and let Mike C do his job.
But, that's mytakeonit
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Post by agedhippie on Jul 13, 2019 19:06:09 GMT -5
Failed to deliver? Numbers are up steady on all key metrics. Haven't gone parabolic yet but the base is building. You are correct, it's been 2 & 1/2 years. But it's going to take another 2 & 1/2. That's just a fact. Last year the executives objectives were achieved at the level of 50% according to the compensation committee. Not exactly high performing - it might take more than 2 years. However in compensation the executives all got a special bonus of 30% of each individual’s target bonus opportunity (note opportunity so against the full 100% and not the 50% granted) for the UTHR deal and the refinancing. They give bonuses for diluting the stockholders?  |
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Post by stockwhisperer on Jul 13, 2019 19:44:32 GMT -5
Failed to deliver? Numbers are up steady on all key metrics. Haven't gone parabolic yet but the base is building. You are correct, it's been 2 & 1/2 years. But it's going to take another 2 & 1/2. That's just a fact. Last year the executives objectives were achieved at the level of 50% according to the compensation committee. Not exactly high performing - it might take more than 2 years. However in compensation the executives all got a special bonus of 30% of each individual’s target bonus opportunity (note opportunity so against the full 100% and not the 50% granted) for the UTHR deal and the refinancing. They give bonuses for diluting the stockholders? So, here is a link for anyone interested - it is a 2017 - 2018 Report about Small Biotech - CEO & such, salaries - bonuses... www.capartners.com/cap-thinking/small-pharmabiotech/ |
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Post by mytakeonit on Jul 13, 2019 19:57:46 GMT -5
What dilution? My shares more than tripled !!! Gotta love these low prices !!!
So, 50% achievement means $1M salary? Wow, that means 100% achievement would have meant $2M salary or more !!! Sign me up ... I'm going back to work !!!
But, that's mytakeonit
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Post by morfu on Jul 13, 2019 20:33:43 GMT -5
"Managers deserve their pay"
Hmm, the average income for an US household is about 60k$/year.
So lets assume manager works double as hard as an average person or is double as smart or educated or a combination of that.
Than he might deserve double pay in a society which has no heart otherwise the gifted or rich should share.
Personally, I believe it is very difficult to be twice as good as the average for a sustained period of time, we are all too similar.
Also, nothing in this managers track record seems to point to anything extraordinary!
Any time he needs money for the company, he either makes a deal with a loan shark or dilutes the ownership.
A first semester business student could have figured that out! There is nothing there which points to 20x average or higher
(The fact that this might be true for many other managers, does not change the answer if this one deserve such a pay)
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Post by barnstormer on Jul 13, 2019 21:19:29 GMT -5
As I said before, MNKD isn't only about Afrezza. Wait for the quarterly CC and look at the total picture. Or, sell your shares so I can buy them. BTW, if MNKD's pps is $100+ ... is Mike's salary too high? The BOD set his salary ... go grumble about them and let Mike C do his job. But, that's mytakeonit At the ASM year before last Mike said all of the other TS apps were on hold and would be hard to start up again. Afrezza was the only thing a year ago according to Mike. So now all of a sudden TS is the main focus? I think you are putting too much weight on TS for the next CC. Good luck with that, "but thats my take on it. |
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Post by wgreystone on Jul 14, 2019 1:14:49 GMT -5
I used to believe Nates' claim that the market is inefficient with regarding to MNKD, now I had to admit market is just smarter than us. After Sanofi's failed launch of Afrezza, the street already figured out that it'd be a tough sell of Afrezza, at least in the traditional way. The management team as well as us shareholders have to admit it: insurance companies do not want to fully cover another more expensive insulin, and Endos have no incentives to spend more times helping patients to switch to Afrezza. The shorts can comfortably hold their short positions at this very low price for so long, it means they don't see any catalyst on the horizon that can change the tide.
The only hope we have is for the management team to find an untraditional way to get Afrezza to patients' hand. Vdex is a great opportunity. It's just hard to believe that MC turned it down so easily. Imagine if MNKD signs a deal with Vdex and Vdex lines up invstestors to open up 50 or 100 clinics quickly, shorts will finally get worried and start to cover their position. As for Vdex, once they have more clinics opened, they can launch nation-wide ad by stating they have a new diabetes treatment protocol. If an PWD has A1C above 8.0, pls come to see us, we will guarantee to bring down your A1C to below 7.0 in 6 mo, or you will get all your money back. The ad will be easily more attractive than MC's freedom of eating ad.
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Post by sportsrancho on Jul 14, 2019 8:19:18 GMT -5
So so so sad! Nates claim was my dream. I’m still holding onto a tiny part of it, but you’re right it’s so darn hard to admit that is not the case. This sucks.
Vdex has protocols that outperform. They train the doctors how to dose. It isn’t easy, they get it, they see it with their own eyes, but they want to go back to what’s familiar ...until the results start rolling in.
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Post by rtmd on Jul 14, 2019 8:27:03 GMT -5
So so so sad! Nates claim was my dream. I’m still holding onto a tiny part of it, but you’re right it’s so darn hard to admit that is not the case. This sucks. Vdex has protocols that outperform. They train the doctors how to dose. It isn’t easy, they get it, they see it with their own eyes, but they want to go back to what’s familiar ...until the results start rolling in. I posted this elsewhere but it may apply here as well. The label says: "Adjust the dosage of AFREZZA based on the individual's metabolic needs, blood glucose monitoring results and glycemic control goal. Dosage adjustments may be needed with changes in physical activity, changes in meal patterns (i.e., macronutrient content or timing of food intake), changes in renal or hepatic function or during acute illness [see Warnings and Precautions (5.3) , and Use in Specific Populations (8.5, 8.6)]. Carefully monitor blood glucose control in patients requiring high doses of AFREZZA. If, in these patients, blood glucose control is not achieved with increased AFREZZA doses, consider use of subcutaneous mealtime insulin." What more does VDEX add to that? What more do you want it to say? |
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Post by sportsrancho on Jul 14, 2019 8:33:10 GMT -5
The doctors are un-educated and afraid to do it. It’s insulin, it’s scary, they don’t want to mess with it. They don’t want to mess with the insurance they don’t want to take the time to help the patient learn something new. If you’re hired by Vdex you do the job you’re hired to do. Not to say that Vdex doesn’t have a few secrets up their sleeve on how much Afrezza to give and when:-)
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Post by mannmade on Jul 14, 2019 10:11:33 GMT -5
My personal opinion on Mike's compensation, and this isn't related to how I feel about his leadership as CEO, as to me that is an entirely different discussion, although this subject could be part of it, is as follows: I have run four start ups now and been invloved in a fifth as a senior business development executive. I never took a salary that was more than I felt fair to the employees and anyone else involved in the company. As an equity owner in all five of the companies, I always chose to bet on myself and the upside. I understand the need to compensate key employees differently and the need to make sure sales related positions have the proper incentives. However, in Mike's case I just don't understand how he cannot see that his salary and stock incentives are out of whack for the current position mnkd finds itself in. He can justify it any way he wants, but it also shows a lack of sensitivity to the long time shareholders such as those here. Even CEO's of some of America's biggest companies take less in base pay than Mike ,with the bulk of their annual compensation coming with a year end bonus mostly in the form of company stock. I put my money where my mouth is. I am newly employed with a 6th start up that did 3.5m in its first year and is on track to do 12m in sales this year and have yet to take a dime in salary after 3 months. Instead I have taken a minority equity position and will not be paid until we become cash flow positive. Mike should do something similar in my opinion. GLTAL's!!! You sound like you are probably much older than Mike and have more money than he does. Am I right? Put yourself in his shoes for a moment. First off, he's got a wife and daughter to consider. Id hate to consider the wrath my wife would have brought down upon me if I told her I was leaving a BP to go work for free. Aye pobrecito! He gave up a VP position to come here, probably with the intent to become CEO for the first time in his career. My guess is, this is the most Mike has ever earned. By the way, he only started to get his big paychecks for a couple years Now. It takes a while to feel flush enough to stop taking a salary. Especially after California taxes! As far as the level of salary and the stock options go. The compensation committee already published their rationale and the real world peers they used for comparison. Also, from the filing: • Our stockholders approved, on an advisory basis, the compensation of our named executive officers, as disclosed in our definitive proxy statement for the Annual Meeting, filed with the Securities and Exchange Commission on March 28, 2019. The tabulation of votes on this matter was as follows: shares voted for: 39,066,556; shares voted against: 18,802,298; shares abstaining: 455,603; and broker non-votes: 105,785,750. That's a 3:1 majority stating they were alright with the compensation. Heck, it was almost 5:1 for Mike on the BOD vote. That's the reality of the guidance for this company. It just is what it is. If that's a deal breaker for you then you have some decisions to make. I wouldn't begin to tell you what to do. I'm not that arrogant. But, it seems to me if you've lost most of your investment already, unless you need a kidney, holding is the only option. It is frustrating, I know, to feel so helpless sitting here on the sidelines. But, there is some light at the end of the tunnel. Many of us can see it. Look, is Mike going to be perfect? No. Never said that. But does he have the pedigree to develop into a great CEO? I think so. He does purchase shares at a rate of about 10% of his earnings. That's a steady commitment for a young executive. Look, I hope you are overwhelmingly compensated for your frustration lo these many years. I just don't expect so much charity from our CEO, or any CEO for that matter, until they are much farther along their career path. GLTY With all due respect to you... You have completely missed my point. First off, I do not think my age or personal balance sheet is anyone's business... Secondly, as I pointed out, many CEO's of major American Companies making much more and worth much more do this as well as those not making so much as it is just good business sense as well as optics... Third, it is my understanding (and none of my business really except that you raised the issue) Mike lives in Westlake which is a very expensive area and collects Ferarri's as I recall, so I am of the impression he too can afford to make it right with shareholders regardiing his compensation until mnkd is profitable. His actions send a message to me as a long time shareholder since 2008 who has lost quite a bit of money that he has no sensitivity to the rest of us and that he does not care about such optics. At the very least he could buy more shares on the open market. (And by the way, before you go there, I do not blame anyone for my losses as it was totally my decision based on my due diligence which was extensive. Just one of those things that could not be fully understood at the time as a medical community outsider) |
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bkdmd
Researcher
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Post by bkdmd on Jul 14, 2019 11:36:23 GMT -5
You sound like you are probably much older than Mike and have more money than he does. Am I right? Put yourself in his shoes for a moment. First off, he's got a wife and daughter to consider. Id hate to consider the wrath my wife would have brought down upon me if I told her I was leaving a BP to go work for free. Aye pobrecito! He gave up a VP position to come here, probably with the intent to become CEO for the first time in his career. My guess is, this is the most Mike has ever earned. By the way, he only started to get his big paychecks for a couple years Now. It takes a while to feel flush enough to stop taking a salary. Especially after California taxes! As far as the level of salary and the stock options go. The compensation committee already published their rationale and the real world peers they used for comparison. Also, from the filing: • Our stockholders approved, on an advisory basis, the compensation of our named executive officers, as disclosed in our definitive proxy statement for the Annual Meeting, filed with the Securities and Exchange Commission on March 28, 2019. The tabulation of votes on this matter was as follows: shares voted for: 39,066,556; shares voted against: 18,802,298; shares abstaining: 455,603; and broker non-votes: 105,785,750. That's a 3:1 majority stating they were alright with the compensation. Heck, it was almost 5:1 for Mike on the BOD vote. That's the reality of the guidance for this company. It just is what it is. If that's a deal breaker for you then you have some decisions to make. I wouldn't begin to tell you what to do. I'm not that arrogant. But, it seems to me if you've lost most of your investment already, unless you need a kidney, holding is the only option. It is frustrating, I know, to feel so helpless sitting here on the sidelines. But, there is some light at the end of the tunnel. Many of us can see it. Look, is Mike going to be perfect? No. Never said that. But does he have the pedigree to develop into a great CEO? I think so. He does purchase shares at a rate of about 10% of his earnings. That's a steady commitment for a young executive. Look, I hope you are overwhelmingly compensated for your frustration lo these many years. I just don't expect so much charity from our CEO, or any CEO for that matter, until they are much farther along their career path. GLTY With all due respect to you... You have completely missed my point. First off, I do not think my age or personal balance sheet is anyone's business... Secondly, as I pointed out, many CEO's of major American Companies making much more and worth much more do this as well as those not making so much as it is just good business sense as well as optics... Third, it is my understanding (and none of my business really except that you raised the issue) Mike lives in Westlake which is a very expensive area and collects Ferarri's as I recall, so I am of the impression he too can afford to make it right with shareholders regardiing his compensation until mnkd is profitable. His actions send a message to me as a long time shareholder since 2008 who has lost quite a bit of money that he has no sensitivity to the rest of us and that he does not care about such optics. At the very least he could buy more shares on the open market. (And by the way, before you go there, I do not blame anyone for my losses as it was totally my decision based on my due diligence which was extensive. Just one of those things that could not be fully understood at the time as a medical community outsider) I am glad that I am not the only one who feels this way. Cost is what you pay. Value is what you get. Is MC a cost or is MC value? The market cap says it all. I wish I could get a job, deliver no value, and still get rich. The problem isn't so much MC getting rich while long term shareholders get hammered.....the problem is he doesn't care what we think. |
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