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Post by prcgorman2 on Aug 19, 2022 15:02:24 GMT -5
Excellent analysis. Thank you Clement, and others who helped contribute to the thread. I am curious if anyone has analyzed costs versus benefit of V-Go acquisition based on the 2Q earnings report? I remember that sayhey, awesomo, and others were concerned it would be an albatross around Mannkind’s neck. I assumed there was more to the story because I’m very pleased with Mannkind as a going concern versus on the edge of bankruptcy, so I like to think management is competent. I also like seeing the increasing sales of V-Go in the weekly Rx numbers that our beloved kippyt provides, but we’ve been in the dark generally on whether V-Go was good to go, or should be gone. Anything in the recent numbers to help us know how the V-Go story is shaping up?
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Post by awesomo on Aug 19, 2022 15:45:27 GMT -5
Excellent analysis. Thank you Clement, and others who helped contribute to the thread. I am curious if anyone has analyzed costs versus benefit of V-Go acquisition based on the 2Q earnings report? I remember that sayhey, awesomo, and others were concerned it would be an albatross around Mannkind’s neck. I assumed there was more to the story because I’m very pleased with Mannkind as a going concern versus on the edge of bankruptcy, so I like to think management is competent. I also like seeing the increasing sales of V-Go in the weekly Rx numbers that our beloved kippyt provides, but we’ve been in the dark generally on whether V-Go was good to go, or should be gone. Anything in the recent numbers to help us know how the V-Go story is shaping up? V-Go's gross profit for Q2 was $0.8M (revenue minus cost of goods sold). SG&A expenses increased from $20.6M in Q1 to $26M (increase in $5.4M) in Q2, these expenses are not segmented by product. So yeah, that's pretty much all we know from the earnings report. |
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Post by akemp3000 on Aug 19, 2022 16:47:20 GMT -5
In the call, I believe MC said the cost to buy V-Go was $14M and it's projected to bring in approximately $18M to $22M annually. V-Go's marketed had stopped which led to a recent decline. Adding it to the Mannkind offering and marketing it once again is the reason for the expectation. It sounds like a no-brainer. I'd get the transcript but don't have time today.
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Post by awesomo on Aug 19, 2022 17:11:46 GMT -5
In the call, I believe MC said the cost to buy V-Go was $14M and it's projected to bring in approximately $18M to $22M annually. V-Go's marketed had stopped which led to a recent decline. Adding it to the Mannkind offering and marketing it once again is the reason for the expectation. It sounds like a no-brainer. I'd get the transcript but don't have time today. No brainer? The issue isn’t the revenue it is bringing in, the issue is whether it can be profitable. So far, the answer to that is no from two other companies and a no so far from MannKind (expected given the first quarter of having it). Whether or not they can make it profitable is the question, but it certainly is not a “no-brainer”. |
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Post by cretin11 on Aug 19, 2022 18:04:19 GMT -5
Agree with awesomo here. V-Go might turn out to be a good purchase but the jury is out until we know more.
On the plus side, it wasn’t very expensive and it provides built in revenue. Of course it adds expense too.
Will it cannibalize Afrezza, and/or distract from the Afrezza messaging and strategy, that is a concern as sayhey has explained well.
While it wasn’t a huge price tag for V-Go, the market judged that ZEAL got the better end of the deal. ZEAL share price immediately got a huge bump and has sustained that even in a down market.
So while it appears clearly a win for ZEAL, we are hoping it was a win-win deal for both companies as can sometimes happen. I suspect that will not be known for a little while. Hopefully we do a much better job of selling V-Go than we have Afrezza, obviously.
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Post by peppy on Aug 19, 2022 18:32:50 GMT -5
Agree with awesomo here. V-Go might turn out to be a good purchase but the jury is out until we know more. On the plus side, it wasn’t very expensive and it provides built in revenue. Of course it adds expense too. Will it cannibalize Afrezza, and/or distract from the Afrezza messaging and strategy, that is a concern as sayhey has explained well. While it wasn’t a huge price tag for V-Go, the market judged that ZEAL got the better end of the deal. ZEAL share price immediately got a huge bump and has sustained that even in a down market. So while it appears clearly a win for ZEAL, we are hoping it was a win-win deal for both companies as can sometimes happen. I suspect that will not be known for a little while. Hopefully we do a much better job of selling V-Go than we have Afrezza, obviously. Quote, "Will it cannibalize Afrezza, and/or distract from the Afrezza messaging and strategy," It being V-Go. reply, I do not see t the same way. Afrezza and V-GO are different clients. Afrezza, these people have insurance coverage or money. V-GO the way I see it, is for people that do not have money. *The way I see it. Whole Foods vs the dollar store. |
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Post by cretin11 on Aug 19, 2022 18:58:52 GMT -5
Interesting theory, that it’s all about who has money (or insurance) and who doesn’t. First I’ve seen that speculated, but who knows. After all, peppy sometimes you can be right.
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Post by peppy on Aug 19, 2022 19:06:52 GMT -5
Interesting theory, that it’s all about who has money (or insurance) and who doesn’t. First I’ve seen that speculated, but who knows. After all, peppy sometimes you can be right. |
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Post by Clement on Oct 15, 2022 7:13:04 GMT -5
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