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Post by castlerockchris on May 12, 2022 13:18:29 GMT -5
That's incorrect. Steve Binder said UTHR will purchase Tyvaso DPI from MNKD and the Revenue/Royalty will fall to the bottom line. Once DPI is delivered or shipped to UTHR MNKD gets to record the revenue. They do not have to wait until DPI is in the pipeline. Also the amount is $21M of Deferred Manufacturing Revenue not $25M. That was my error. Upon approval MNKD will have 2 new Revenue Streams. Casper, If I am reading this right, you are saying the low double digit royalties are going to be calculated on the cost to manufacture the product. I was under the impression that the royalties would be calculated on the revenue derived from the product realized by UTHR. That would be a big difference in revenue to MNKD and totally shift my model for the value of MNKD. |
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Post by cretin11 on May 12, 2022 13:52:47 GMT -5
That's incorrect. Steve Binder said UTHR will purchase Tyvaso DPI from MNKD and the Revenue/Royalty will fall to the bottom line. Once DPI is delivered or shipped to UTHR MNKD gets to record the revenue. They do not have to wait until DPI is in the pipeline. Also the amount is $21M of Deferred Manufacturing Revenue not $25M. That was my error. Upon approval MNKD will have 2 new Revenue Streams. Casper, If I am reading this right, you are saying the low double digit royalties are going to be calculated on the cost to manufacture the product. I was under the impression that the royalties would be calculated on the revenue derived from the product realized by UTHR. That would be a big difference in revenue to MNKD and totally shift my model for the value of MNKD.castlerock I think your method of calculation is more accurate. Would like to know if that’s not true, would seem unusual. |
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Post by robbmo on May 12, 2022 14:10:08 GMT -5
That's incorrect. Steve Binder said UTHR will purchase Tyvaso DPI from MNKD and the Revenue/Royalty will fall to the bottom line. Once DPI is delivered or shipped to UTHR MNKD gets to record the revenue. They do not have to wait until DPI is in the pipeline. Also the amount is $21M of Deferred Manufacturing Revenue not $25M. That was my error. Upon approval MNKD will have 2 new Revenue Streams. Casper, If I am reading this right, you are saying the low double digit royalties are going to be calculated on the cost to manufacture the product. I was under the impression that the royalties would be calculated on the revenue derived from the product realized by UTHR. That would be a big difference in revenue to MNKD and totally shift my model for the value of MNKD.There are two revenue sources related to TyvasoDPI: 1. MNKD receives (Manfacturing cost + 10(ish)%) to manufacture the product. 2. MNKD receives low double-digit royalties on actual sales of TyvasoDPI. |
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Post by hellodolly on May 12, 2022 14:17:33 GMT -5
That's incorrect. Steve Binder said UTHR will purchase Tyvaso DPI from MNKD and the Revenue/Royalty will fall to the bottom line. Once DPI is delivered or shipped to UTHR MNKD gets to record the revenue. They do not have to wait until DPI is in the pipeline. Also the amount is $21M of Deferred Manufacturing Revenue not $25M. That was my error. Upon approval MNKD will have 2 new Revenue Streams. Casper, If I am reading this right, you are saying the low double digit royalties are going to be calculated on the cost to manufacture the product. I was under the impression that the royalties would be calculated on the revenue derived from the product realized by UTHR. That would be a big difference in revenue to MNKD and totally shift my model for the value of MNKD."Under the terms of the agreement, MannKind Corporation will receive an upfront payment of $45 million and potential milestone payments of up to $50 million, dependent upon the achievement of specific development targets. MannKind will also be entitled to receive low double-digit royalties on net sales of the product. In addition, MannKind granted United Therapeutics an option to expand the license to include other active ingredients for the treatment of pulmonary hypertension. Each optioned product would be subject to the payment to MannKind of up to $40 million in additional option exercise and development milestone payments as well as a low double-digit royalty on net sales of any such product." SOURCE: investors.mannkindcorp.com/news-releases/news-release-details/united-therapeutics-and-mannkind-announce-collaboration-0 |
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Post by castlerockchris on May 13, 2022 11:21:53 GMT -5
"Under the terms of the agreement, MannKind Corporation will receive an upfront payment of $45 million and potential milestone payments of up to $50 million, dependent upon the achievement of specific development targets. MannKind will also be entitled to receive low double-digit royalties on net sales of the product. In addition, MannKind granted United Therapeutics an option to expand the license to include other active ingredients for the treatment of pulmonary hypertension. Each optioned product would be subject to the payment to MannKind of up to $40 million in additional option exercise and development milestone payments as well as a low double-digit royalty on net sales of any such product." SOURCE: investors.mannkindcorp.com/news-releases/news-release-details/united-therapeutics-and-mannkind-announce-collaboration-0Thank you hellodolly. It will be interesting to see where net revenue lands as a percentage of total revenue. I would assume expense line items to be included in the calculation of net revenue are specified somewhere in the contract. |
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Post by hellodolly on May 13, 2022 11:36:34 GMT -5
"Under the terms of the agreement, MannKind Corporation will receive an upfront payment of $45 million and potential milestone payments of up to $50 million, dependent upon the achievement of specific development targets. MannKind will also be entitled to receive low double-digit royalties on net sales of the product. In addition, MannKind granted United Therapeutics an option to expand the license to include other active ingredients for the treatment of pulmonary hypertension. Each optioned product would be subject to the payment to MannKind of up to $40 million in additional option exercise and development milestone payments as well as a low double-digit royalty on net sales of any such product." SOURCE: investors.mannkindcorp.com/news-releases/news-release-details/united-therapeutics-and-mannkind-announce-collaboration-0Thank you hellodolly. It will be interesting to see where net revenue lands as a percentage of total revenue. I would assume expense line items to be included in the calculation of net revenue are specified somewhere in the contract. I've wondered if it's the definition or play on words but, is "net sales" the same as "net revenue"? I would think sales would be ex-cost of manufacturing while revenue includes COM?. |
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Post by sayhey24 on May 13, 2022 13:41:49 GMT -5
Thank you hellodolly. It will be interesting to see where net revenue lands as a percentage of total revenue. I would assume expense line items to be included in the calculation of net revenue are specified somewhere in the contract. I've wondered if it's the definition or play on words but, is "net sales" the same as "net revenue"? I would think sales would be ex-cost of manufacturing while revenue includes COM?. Net Sales = Gross Sales – Returns – Allowances – Discounts Net Revenue = Gross Revenue - selling expenses |
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