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Buyout
Aug 16, 2014 14:41:16 GMT -5
via mobile
Post by bradleysbest on Aug 16, 2014 14:41:16 GMT -5
I am not sure so please help me. Does Sanofi have first rights to buyout Al if there is a buyout? Do competitors (Merck, Novo, etc...) have a shot if they want to purchase MNKD? Thx
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Buyout
Aug 16, 2014 15:45:48 GMT -5
Post by dreamboatcruise on Aug 16, 2014 15:45:48 GMT -5
No... nothing about buyouts were announced.
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Buyout
Aug 16, 2014 18:43:26 GMT -5
Post by gwb on Aug 16, 2014 18:43:26 GMT -5
No... nothing about buyouts were announced. Under the terms of the Sanofi License Agreement, we granted to Sanofi a right of first negotiation in the event we propose to grant to any third party a license to develop or exploit an inhaled glucagon-like peptide-1 agonist. In addition, if our board of directors determines to pursue a change of control of MannKind, we will be required notify Sanofi of such determination within a certain period of time so that Sanofi may, at is discretion, negotiate with us for a potential acquisition of MannKind by Sanofi.
You are correct nothing about buyouts were mentioned , but the above from the 10Q allows Sanofi first right , just in case ?
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Post by dreamboatcruise on Aug 16, 2014 20:59:39 GMT -5
No... nothing about buyouts were announced. Under the terms of the Sanofi License Agreement, we granted to Sanofi a right of first negotiation in the event we propose to grant to any third party a license to develop or exploit an inhaled glucagon-like peptide-1 agonist. In addition, if our board of directors determines to pursue a change of control of MannKind, we will be required notify Sanofi of such determination within a certain period of time so that Sanofi may, at is discretion, negotiate with us for a potential acquisition of MannKind by Sanofi.
You are correct nothing about buyouts were mentioned , but the above from the 10Q allows Sanofi first right , just in case ?
I had forgotten about the second. That second one about change of control isn't a "first right" however which means first rights of refusal... i.e. if someone else offers a particular deal then Mannkind would have to sell to Sanofi under the same terms. What they have is what is referred to as "right of notification". Mannkind could still accept an equal or even seemingly inferior offer from another party (within normal constraints of fiduciary duties). There is really little downside to a "right of notification" for Sanofi. I can hardly imagine a scenario that Mannkind wouldn't want to do that if they were thinking of selling out.
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