|
|
Post by casualinvestor on Dec 12, 2019 14:52:08 GMT -5
MNKD has contracts to buy more insulin than it needs, and it is written off as a loss when dumped. So making and selling more Afrezza should help, since one of the major costs (I assume) of production is already being written off.
Sales to Brazil may help in MNKD hitting milestones for the loan too, although that may not be savable at this point. We'll find out in early Jan, because I think we're past the point where they would have had to disclose missing the Nov milestone
|
|
|
|
Post by wgreystone on Dec 12, 2019 14:55:28 GMT -5
The prices quoted above are about $.02 per unit of Afrezza insulin, versus about $1.00 per unit of Afrezza insulin retail in the U.S. per GoodRx. If these Brazilian prices are accurate, and Mannkind is not taking a loss on selling to Brazil, then Mannkind manufacturing costs (at least marginal costs) are very, very low relative to net price. And if that is the case, why is Mannkind's gross margin so low? If the manufacturing cost per unit would drop precipitously with volume (lots of fixed cost and low marginal costs), Mannkind should cut prices and increase volume. Sales and gross margins would rise dramatically assuming that coverage by the the insurance companies and demand of uninsured diabetics is sensitive to a large reduction in price. I must be wrong somewhere above. Please advise where. Thanks. Agree. MNKD priced Afrezza too high in the U.S. |
|
|
|
Post by wgreystone on Dec 12, 2019 15:25:12 GMT -5
I don't understand why MNKD didn't sign distributor to get into China. There is a huge middle class population there that can afford higher Afrezza price. Just look Tesla. Its first auto factory outside of U.S. is in China.
|
|
|
|
Post by louaboardalia on Dec 12, 2019 16:30:12 GMT -5
So looks like Mannkind will be taking a huge net loss selling in Brazil. That’s great. And those people talking about flying to Brazil to get Afrezza, this will only cut into mankind’s bottom line. That's inaccurate. Brazil will be profitable but not as profitable as the US. Actually no one is as profitable as the US. Brazil will help the company better utilize their facility. Efficiency's will increase. Like I mentioned earlier yesterday, even if this is a break-even proposition in Brazil, it might permit Mannkind to satisfy it's revised insulin purchase requirements from Amphastar, in addition to increasing production efficiencies. |
|
|
|
Post by mango on Dec 12, 2019 17:07:14 GMT -5
I don't understand why MNKD didn't sign distributor to get into China. There is a huge middle class population there that can afford higher Afrezza price. Just look Tesla. Its first auto factory outside of U.S. is in China. China is authoritarian and literally tries to control every aspect of peoples lives. It’s not safe to assume anything when it comes to China. More than likely (exaggerating but not), the Chinese govt will be the ones who decides whether or not each PWD is allow to purchase Afrezza. They have facial recognition scans in public bathrooms just for dispensing toilet paper. 😏 Not an ideal country to do business with. |
|
|
|
Post by bababooey on Dec 12, 2019 21:28:15 GMT -5
The prices quoted above are about $.02 per unit of Afrezza insulin, versus about $1.00 per unit of Afrezza insulin retail in the U.S. per GoodRx. If these Brazilian prices are accurate, and Mannkind is not taking a loss on selling to Brazil, then Mannkind manufacturing costs (at least marginal costs) are very, very low relative to net price. And if that is the case, why is Mannkind's gross margin so low? If the manufacturing cost per unit would drop precipitously with volume (lots of fixed cost and low marginal costs), Mannkind should cut prices and increase volume. Sales and gross margins would rise dramatically assuming that coverage by the the insurance companies and demand of uninsured diabetics is sensitive to a large reduction in price. I must be wrong somewhere above. Please advise where. Thanks. My point exactly. I am fairly certain they are taking a net loss on this but can use it as a tax write off. Problem is, this is only sustainable if Mannkind is profitable. Until they are cash flow positive this is just another drain on resources. On the upside is sounds like they may have sold insulin that would have gone to waste anyway, so this first batch doesn't affect the company. Edit: I should mention this is a strategy to ultimately gets more users on afrezza for post marketing data which may or may not help with insurance. Remember the, phase III clinical trails were conducted in Brazil I believe |
|
|
|
Post by barnstormer on Dec 13, 2019 0:53:56 GMT -5
The prices quoted above are about $.02 per unit of Afrezza insulin, versus about $1.00 per unit of Afrezza insulin retail in the U.S. per GoodRx. If these Brazilian prices are accurate, and Mannkind is not taking a loss on selling to Brazil, then Mannkind manufacturing costs (at least marginal costs) are very, very low relative to net price. And if that is the case, why is Mannkind's gross margin so low? If the manufacturing cost per unit would drop precipitously with volume (lots of fixed cost and low marginal costs), Mannkind should cut prices and increase volume. Sales and gross margins would rise dramatically assuming that coverage by the the insurance companies and demand of uninsured diabetics is sensitive to a large reduction in price. I must be wrong somewhere above. Please advise where. Thanks. Agree. MNKD priced Afrezza too high in the U.S. Exactly Mike "We aren't at AMGEN anymore". Grab market share and then slowely increase price. BUS 101. |
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Dec 13, 2019 1:28:45 GMT -5
Now I'm going to go out on a limb and say MNKD could be using the insulin they bought from Pfizer many years ago. I know it had a zero cost. I know a couple of years ago before Mike that they had a lot of insulin in refrigerated storage. I remember Al Mann said they had $10 Billion dollars worth of insulin. I also know they have to get it inspected once a year for viability. I remember they would write off some insulin every year because it went bad. Now I'm not sure if they still have it or if they are using it in Brazil.
|
|
|
|
Post by wgreystone on Dec 13, 2019 2:33:28 GMT -5
I don't understand why MNKD didn't sign distributor to get into China. There is a huge middle class population there that can afford higher Afrezza price. Just look Tesla. Its first auto factory outside of U.S. is in China. China is authoritarian and literally tries to control every aspect of peoples lives. It’s not safe to assume anything when it comes to China. More than likely (exaggerating but not), the Chinese govt will be the ones who decides whether or not each PWD is allow to purchase Afrezza. They have facial recognition scans in public bathrooms just for dispensing toilet paper. 😏 Not an ideal country to do business with. Are you serious? Have you been to China before? Chinese purchased about 70% of world luxury items. as regarding to facial recognition, now they can use facial recognition to pay for merchandise or board flights, etc, wouldn't that be better than showing your driver license? It would be truly dumb to ignore that market. |
|
|
|
Post by pat on Dec 13, 2019 7:55:21 GMT -5
A year from now Huawie brings a revolutionary new insulin “Chafrezza” to market...
Just kidding! Don’t blast me pls.
|
|
|
|
Post by thekid2499 on Dec 13, 2019 8:18:55 GMT -5
China is authoritarian and literally tries to control every aspect of peoples lives. It’s not safe to assume anything when it comes to China. More than likely (exaggerating but not), the Chinese govt will be the ones who decides whether or not each PWD is allow to purchase Afrezza. They have facial recognition scans in public bathrooms just for dispensing toilet paper. 😏 Not an ideal country to do business with. Are you serious? Have you been to China before? Chinese purchased about 70% of world luxury items. as regarding to facial recognition, now they can use facial recognition to pay for merchandise or board flights, etc, wouldn't that be better than showing your driver license? It would be truly dumb to ignore that market. China is also very well known for stealing company's IP. I agree the market shouldn't be ignored, but I would wait until we are on a little better footing to head into that market. |
|
|
|
Post by esstan2001 on Dec 13, 2019 8:31:36 GMT -5
A year from now Huawie brings a revolutionary new insulin “Chafrezza” to market... I just asked Chalexa and confirmed what you claimed. |
|
|
|
Post by esstan2001 on Dec 13, 2019 8:42:06 GMT -5
A year from now Huawie brings a revolutionary new insulin “Chafrezza” to market... I just asked Chalexa and confirmed what you claimed.  |
|
|
|
Post by wgreystone on Dec 13, 2019 11:27:15 GMT -5
Are you serious? Have you been to China before? Chinese purchased about 70% of world luxury items. as regarding to facial recognition, now they can use facial recognition to pay for merchandise or board flights, etc, wouldn't that be better than showing your driver license? It would be truly dumb to ignore that market. China is also very well known for stealing company's IP. I agree the market shouldn't be ignored, but I would wait until we are on a little better footing to head into that market. There is no time to wait. Celgene recently exited China market and partnered with BGNE for product sales in China. I believe one major fact is China approved a generic version of their best selling drug. Once a drug loses patent protection, it has very little value left. |
|
|
|
Post by slugworth008 on Dec 13, 2019 12:04:05 GMT -5
A real money maker down there. Just another day in the life of MNKD
|
|
