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Post by shake34 on Aug 7, 2019 18:33:17 GMT -5
I sure hope tomorrow morning were going to see Peppy reopen volume six and give us some target numbers.
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Post by hellodolly on Aug 7, 2019 18:34:45 GMT -5
Is DF still owed the milestone payments? Yes I believe so. But recall that these milestones are only owed when MNKD achieves its next 50M in net sales. MNKD owed Deerfield 5M upon realizing net sales of 50M. Then they owe another 5M when they realize another 50M in sales. At some point the next milestone is only owed when another 100M or so of net sales is achieved. So these are not paid until MNKD receives ten times the cash in sales. After a few hundred million of sales occur the milestones disappear completely. So these Sales milestones are not a bad thing. The quicker we owe them the better we will be doing. A new barometer of success..the irony of it now.
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Post by uvula on Aug 7, 2019 18:39:59 GMT -5
Paid off means paid off. Not sure how mnkd would be required to pay any future milestone payments. If DF is out of the picture they are completely out of the picture.
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Post by ktim on Aug 7, 2019 18:41:25 GMT -5
Why is Mike still hiring sales guys when he could be working with a partner to open clinics? Good comment on RLS, probable news in the second half. Well, the FDA would never allow them to directly fund clinics (whether traditional ones or VDex ones). Whether indirectly funding a middleman distributor scheme proposed by HFM would pass muster is still debatable. But it now seems like VDex is saying they don't need to be funded by MNKD and can fund expansion on their own, which is great news.
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Post by hellodolly on Aug 7, 2019 18:43:58 GMT -5
Paid off means paid off. Not sure how mnkd would be required to pay any future milestone payments. If DF is out of the picture they are completely out of the picture. Maybe a simple email to Steve Binder would answer it. UPDATE: I sent an email to Steve.
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Post by ktim on Aug 7, 2019 18:46:56 GMT -5
Paid off means paid off. Not sure how mnkd would be required to pay any future milestone payments. If DF is out of the picture they are completely out of the picture. Management only spoke of the debt repayment not these milestones. Given there were still $75M outstanding milestones at end of Q2, it doesn't seem plausible that those would have gone away based on the flows of money discussed... does it?
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Post by uvula on Aug 7, 2019 18:47:00 GMT -5
Pure speculation: There were 6 items in the first column. RLS was one of them. MC said there were 5 things in the first column and he didn't mention RLS.
Possibly MC was expecting last minute news about RLS but when it didn't come he didn't want to mention RLS but didn't have time to update the slide. Could this mean we are days away from good RLS news?
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Post by agedhippie on Aug 7, 2019 18:53:18 GMT -5
• MannKind (NASDAQ:MNKD) Q2 results: • Revenues: $15.0M (+285%); Afrezza sales: $6.1M (+62% yoy and +20% sequentially). • Net loss: ($12.4M); loss/share: ($0.07). • Yesterday, the company inked an agreement with Apollo Investment Corp. and MidCap Financial Trust for a $75M secured loan facility maturing on August 1, 2024. The company drew $40M at closing. It also negotiated exchange agreements with each of its creditors in order to pay off and/or restructure its existing debt obligations. • Shares down 4% after hours. The immediate news is that this is a $40M loan of which $15M must be held in escrow leaving $25M available. The remaining $35M of the loan is dependent on hitting certain targets (and an extra $5M in escrow). Overall certain Afrezza revenue targets must be hit each month to keep the loan open. Mid-Cap have the same lock on the assets that Deerfield did. And warrants. That loan is interesting. It is $75M once all the milestones have been hit. The structure is; - first tranche $40M now - second trance $10M when $30M net Afrezza revenue is hit. This must be achieved before April 2020 so the first quarter is already completed ($6.1M) - third tranche $25M when unspecified TreT revenue targets are hit. This must be achieved before June 2021. - Repayments are monthly starting September 2021 On the plus side the Afrezza revenue targets look fairly safe. For example the August 31 target is $21.5M year to date. I can SO tracking this since they publish the target for each month. Now the not so good: - there are monthly trailing annual Afrezza targets (Minimum Afrezza Net Revenue Schedule) that *must* be hit. - interest rate is a minimum of 8.75% rising if Libor gets above 2% (there is no drop). - $15M in escrow for the initial trance rising to $20M with the subsequent tranches - Warrants issues along side each tranche. For the first tranche there are warrants covering 1.17M shares at $1.12 with a seven year expiry. The strike price and number for the remaining tranche warrants are dependent on the share price, Mid-Cap does better if the price is low. - as with Deerfield Mid-Cap has all assets and IP as security - there is a 6% exit fee based on the maximum borrowed (there is also an early repayment penalty). That's my first cut of the loan agreement.
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Post by agedhippie on Aug 7, 2019 18:55:48 GMT -5
Paid off means paid off. Not sure how mnkd would be required to pay any future milestone payments. If DF is out of the picture they are completely out of the picture. The milestone payments were an entirely separate agreement. Mannkind sold part of their future revenue stream and Deerfield will want to collect on what they bought. This is reflected in the 10Q filing with the liability.
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Post by mytakeonit on Aug 7, 2019 19:00:04 GMT -5
mytakeonit has predicted major news from this CC, if that comes true then perhaps we may deduce the unusual mid-week scheduling was a tell... I didn't predict anything. I just remembered what was said in the first quarter ... and what Mike C said throughout the second quarter when he posted for a few days. Put it all together and it is pretty much what was stated in the CC. And now, do you all consider Deerfield to be our friend? But, that's mytakeonit
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Post by ktim on Aug 7, 2019 19:04:32 GMT -5
mytakeonit has predicted major news from this CC, if that comes true then perhaps we may deduce the unusual mid-week scheduling was a tell... I didn't predict anything. I just remembered what was said in the first quarter ... and what Mike C said throughout the second quarter when he posted for a few days. Put it all together and it is pretty much what was stated in the CC. And now, do you all consider Deerfield to be our friend? But, that's mytakeonit That was yesterday's question. Now the question would be how friendly Apollo would be if their friendship is ever needed
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Post by alethea on Aug 7, 2019 19:11:16 GMT -5
Paid off means paid off. Not sure how mnkd would be required to pay any future milestone payments. If DF is out of the picture they are completely out of the picture. The milestone payments were an entirely separate agreement. Mannkind sold part of their future revenue stream and Deerfield will want to collect on what they bought. This is reflected in the 10Q filing with the liability.
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Post by alethea on Aug 7, 2019 19:12:57 GMT -5
• MannKind (NASDAQ:MNKD) Q2 results: • Revenues: $15.0M (+285%); Afrezza sales: $6.1M (+62% yoy and +20% sequentially). • Net loss: ($12.4M); loss/share: ($0.07). • Yesterday, the company inked an agreement with Apollo Investment Corp. and MidCap Financial Trust for a $75M secured loan facility maturing on August 1, 2024. The company drew $40M at closing. It also negotiated exchange agreements with each of its creditors in order to pay off and/or restructure its existing debt obligations. • Shares down 4% after hours. The immediate news is that this is a $40M loan of which $15M must be held in escrow leaving $25M available. The remaining $35M of the loan is dependent on hitting certain targets (and an extra $5M in escrow). Overall certain Afrezza revenue targets must be hit each month to keep the loan open. Mid-Cap have the same lock on the assets that Deerfield did. And warrants. That loan is interesting. It is $75M once all the milestones have been hit. The structure is; - first tranche $40M now - second trance $10M when $30M net Afrezza revenue is hit. This must be achieved before April 2020 so the first quarter is already completed ($6.1M) - third tranche $25M when unspecified TreT revenue targets are hit. This must be achieved before June 2021. - Repayments are monthly starting September 2021 On the plus side the Afrezza revenue targets look fairly safe. For example the August 31 target is $21.5M year to date. I can SO tracking this since they publish the target for each month. Now the not so good: - there are monthly trailing annual Afrezza targets (Minimum Afrezza Net Revenue Schedule) that *must* be hit. - interest rate is a minimum of 8.75% rising if Libor gets above 2% (there is no drop). - $15M in escrow for the initial trance rising to $20M with the subsequent tranches - Warrants issues along side each tranche. For the first tranche there are warrants covering 1.17M shares at $1.12 with a seven year expiry. The strike price and number for the remaining tranche warrants are dependent on the share price, Mid-Cap does better if the price is low. - as with Deerfield Mid-Cap has all assets and IP as security - there is a 6% exit fee based on the maximum borrowed (there is also an early repayment penalty). That's my first cut of the loan agreement. Previously I said: "I wonder how long until our resident tag team of experts begins to poke holes in it?"The answer.... NOT very long. Leave it to you to do your level best to cast negatives on this excellent development and conference call.
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Post by brotherm1 on Aug 7, 2019 19:18:23 GMT -5
I am way long this stock and I much appreciate your knowledge and posts Alethea. I also much appreciate the aged one chiming in. Balance is a good thing.
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Post by peppy on Aug 7, 2019 19:32:26 GMT -5
• MannKind (NASDAQ:MNKD) Q2 results: • Revenues: $15.0M (+285%); Afrezza sales: $6.1M (+62% yoy and +20% sequentially). • Net loss: ($12.4M); loss/share: ($0.07). • Yesterday, the company inked an agreement with Apollo Investment Corp. and MidCap Financial Trust for a $75M secured loan facility maturing on August 1, 2024. The company drew $40M at closing. It also negotiated exchange agreements with each of its creditors in order to pay off and/or restructure its existing debt obligations. • Shares down 4% after hours. The immediate news is that this is a $40M loan of which $15M must be held in escrow leaving $25M available. The remaining $35M of the loan is dependent on hitting certain targets (and an extra $5M in escrow). Overall certain Afrezza revenue targets must be hit each month to keep the loan open. Mid-Cap have the same lock on the assets that Deerfield did. And warrants. That loan is interesting. It is $75M once all the milestones have been hit. The structure is; - first tranche $40M now - second trance $10M when $30M net Afrezza revenue is hit. This must be achieved before April 2020 so the first quarter is already completed ($6.1M) - third tranche $25M when unspecified TreT revenue targets are hit. This must be achieved before June 2021. - Repayments are monthly starting September 2021 On the plus side the Afrezza revenue targets look fairly safe. For example the August 31 target is $21.5M year to date. I can SO tracking this since they publish the target for each month. Now the not so good: - there are monthly trailing annual Afrezza targets (Minimum Afrezza Net Revenue Schedule) that *must* be hit. - interest rate is a minimum of 8.75% rising if Libor gets above 2% (there is no drop). - $15M in escrow for the initial trance rising to $20M with the subsequent tranches - Warrants issues along side each tranche. For the first tranche there are warrants covering 1.17M shares at $1.12 with a seven year expiry. The strike price and number for the remaining tranche warrants are dependent on the share price, Mid-Cap does better if the price is low. - as with Deerfield Mid-Cap has all assets and IP as security - there is a 6% exit fee based on the maximum borrowed (there is also an early repayment penalty). That's my first cut of the loan agreement. MannKind/InhaledInsulinAwareness – Change the Conversation – print ads – Inhalemyinsulin – website, social media, billboards
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