Next cash infusion

[brotherm1]

I’m thinking we have under $60M end of Sept. I’m guessing we are burning about $8M monthly. Not counting on $1.60 warrants being excercised in December. Anyone recall how much cash we need to keep in escrow ? Will we be borrowing or diluting with shares?

[cjm18]

We can borrow money now. No need to dilute in near term.

[mytakeonit]

Last CC said that we are fine financially. No need for additional funding. When is the next CC? Should be coming up soon. Maybe the end of October?

But, that's mytakeonit

[mannmade]

According to MC, he has said on several occasions we have enough money to get to "cash flow break even." And with major debt payments now due in five years and reduced expenses, why borrow if that is the case? (Except for the additional tranches already negoiated)

[mnholdem]

Castagna also spent some time two conferences ago talking about the low cost of Phase 1 trials. Was he indicating some movement within the pipeline or blowing smoke? Inquiring minds want to know..,

[seanismorris]

Oct 8, 2019 11:48:17 GMT -5 mannmade said:

According to MC, he has said on several occasions we have enough money to get to "cash flow break even." And with major debt payments now due in five years and reduced expenses, why borrow if that is the case? (Except for the additional tranches already negoiated)

Wasn’t it one year ago, MC said “no plans for dilution”... then we had dilution a few months later?

If I only had a penny for every time a CEO/COO/CFO (etc) in companies I’d invested in, spouted what proved to be B.S.

I could buy Greenland...

[paul]

Oct 8, 2019 11:30:57 GMT -5 brotherm1 said:

I’m thinking we have under $60M end of Sept. I’m guessing we are burning about $8M monthly. Not counting on $1.60 warrants being excercised in December. Anyone recall how much cash we need to keep in escrow ? Will we be borrowing or diluting with shares?

As I recall 15 million of the 40 million dollar loan has to be kept in escrow.

[mytakeonit]

I'm assuming that cash flow break even is coming sooner than you think. BUT, I think differently so I already bought more shares. Now at quad point fiveruple.

But, that's mytakeonit

[matt]

Oct 8, 2019 12:15:01 GMT -5 mnholdem said:

Castagna also spent some time two conferences ago talking about the low cost of Phase 1 trials. Was he indicating some movement within the pipeline or blowing smoke? Inquiring minds want to know..,

He might have just been commenting in general about the cost of Phase I, not specifically referring to a particular Phase I trial.  In general I would agree with him that any Phase I trial using an already approved drug should cost relatively little, but then there is not much at state in any Phase I trial because most don't use patients with the actual disease.  Showing that the drug is effectively delivered through the lungs into the blood stream in a small group of healthy volunteers should generally a simple exercise.

The operative question is whether a Phase I trial on a generic drug is enough to get any third-party to partner with MNKD before the much higher costs of Phase II and III kick in.  A collection of completed Phase I trials but without partners doesn't create value; a string of Phase I trials accompanied by partnership deals would.  Generics is a tough place to play with new delivery methods simply because the payoff may not be enough to warrant the investment required.  UTHR, attempting to keep the TreT train moving, is an exception rather than the rule. 

[mnholdem]

All true. My point is that "lack of funds" should not be a hindrance anymore to moving some of the pipeline API into Phase 1 clinicals. I would have thought that MannKind would have been meeting with the FDA by now but, if history is any indication, management doesn't appear to engage much in concurrent engineering.

IMO, the CEO should be coordinating his management team on multiple fronts and shortening the timeline by holding them accountable for ensuring that multiple activities are happening at the same time in areas other than financing, investment conferences and Afrezza. Coordinating with the FDA for Phase 1 trial protoclas should have been completed long ago for most of the API.

[lifebreath]

Oct 8, 2019 13:02:05 GMT -5 mnholdem said:

All true. My point is that "lack of funds" should not be a hindrance anymore to moving some of the pipeline API into Phase 1 clinicals. I would have thought that MannKind would have been meeting with the FDA by now but, if history is any indication, management doesn't appear to engage much in concurrent engineering.

IMO, the CEO should be coordinating his management team on multiple fronts and shortening the timeline by holding them accountable for ensuring that multiple activities are happening at the same time in areas other than financing, investment conferences and Afrezza. Coordinating with the FDA for Phase 1 trial protoclas should have been completed long ago for most of the API.

The ability to delegate duties is ultimately what makes for an effective CEO, and successful company. Castagna doesn’t have the maturity to understand that it is his primary function to delegate.

[mnholdem]

There's really no way for me to know that or not but all evidence available to the public tends to support your statement. The job is not only to delegate but to set timelines and HOLD ACCOUNTABLE those you've delegated tasks to.  

As I've posted before, company goals must be set very low for management to have qualified to receive bonus compensation over the pasts several years.

[akemp3000]

Next cash infusion is a good question: UTHR milestones, RLS milestones, warrants, a new TS agreement, increased Afrezza revenues in U.S., first Afrezza revenues from Brazil, a new U.S. or global partnership agreement. Could be anything and could come in all shapes and sizes?

[brotherm1]

Highly unlikely warrants will exercise and unlikely fruition from any of the others will keep us from borrowing more or raising cash in the next 3-5 months as far as I can see

[buyitonsale]

Here is what’s very likely:

Q3 sales revenue > 7M
Q4 - 12.5M milestone from UTHR
Q4 sales revenue > 8M

H1 2020 - 12.5M milestone from UTHR
H2 2020 - 12.5M milestone from UTHR

Flexibility from either warrants or drawing from mid cap facility 10M.


Minimum + 62M in next 18 months.


Brazil revenue and other business developments will complete the picture to CFBE.