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Post by ktim on May 13, 2023 16:41:51 GMT -5
The owner is a financial investment firm seeking a solid long-term return from Mannkind on the lease back, not in owning a specialty pharma manufacturing plant. Typically the company seeking a sale and lease back wants to raise funds in the near term with the option to buy back the lease at a later time. This fit with Mannkind's needs at the time. If there is a M&A play down the road, it would seem beneficial for Mannkind to buy back the lease and own the plant outright once again. This is why I suggested this could be one of many possibilities for requesting more shares on the shelf. Someone mentioned UTHR was funding the plant expansion. I was not aware of this. If true, this would seem complicated unless UTHR has bigger plans which is why I brought the subject up.I'd assume exactly the opposite... it seems needlessly complicated to pay for MNKD to expand manufacturing if they really already plan to buy MNKD. They'd just do the acquisition. From the fact they are 1) paying MNKD to expand and 2) planning their own factory for technosphere, seems pretty clear indication they don't have interest in MNKD acquisition at this point. |
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Post by lennymnkd on May 13, 2023 16:57:45 GMT -5
Why KTM .. having all there ducks in a row manufacturing wise would be an important and necessary
part of a takeover…intellectual property/ technosphere / is only half the ticket .
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Post by ktim on May 13, 2023 17:13:45 GMT -5
Why KTM .. having all there ducks in a row manufacturing wise would be an important and necessary part of a takeover…intellectual property/ technosphere / is only half the ticket . I don't see that reasoning and have spent a career in doing business deals including complicated joint technology development. It's not necessary to wait if the intent is to merge. The fact that they are doing such complicated joint technology creation, licensing and production contracts, indicates to me that they likely considered acquisition way back when and that it wasn't deemed a good fit. Things can always change, but to me seems clear at this point no one is contemplating an acquisition. |
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Post by mytakeonit on May 13, 2023 17:50:05 GMT -5
I believe that they talked to great lengths before and it seemed like a great fit. Sounds like they will be partners in crime forever ... making a ton of $$$.
But, that's mytakeonit
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Post by ktim on May 13, 2023 18:18:47 GMT -5
Seems like you didn't read my complete sentences.
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Post by sportsrancho on May 13, 2023 18:37:03 GMT -5
Maybe somebody needs to go back and read what everybody thought before and what actually happened and then go back to the time before that and the time before that.
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Post by letitride on May 13, 2023 20:49:08 GMT -5
I believe UTHR did what they needed to guaranty sufficient product for an unexpected demand, given the original launch date was expected months earlier and were still playing catch up today. And as for the additional 400million shares I could for see Mannkind scrambling to meet a much greater demand with Afrezza requiring those shares for M&A with a BP able to build out quick enough to fill it. I consider our current situation as a shot across the Bow as to what I am expecting.
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Post by mytakeonit on May 13, 2023 21:03:05 GMT -5
If we followed sports' reasoning ... then we would all be poor again. Ha!
But, that's mytakeonit
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Post by prcgorman2 on May 14, 2023 1:07:31 GMT -5
I believe UTHR did what they needed to guaranty sufficient product for an unexpected demand, given the original launch date was expected months earlier and were still playing catch up today. And as for the additional 400million shares I could for see Mannkind scrambling to meet a much greater demand with Afrezza requiring those shares for M&A with a BP able to build out quick enough to fill it. I consider our current situation as a shot across the Bow as to what I am expecting. Very interesting insight. Can you elaborate any on how the additional shares are valuable for a merger and acquisition by (yes?) a large biopharmaceutical company? How is the authorization to issue 400 million additional shares a bargaining chip of some sort? Is it a threat to “go it alone”? |
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Post by hellodolly on May 14, 2023 7:33:53 GMT -5
Maybe somebody needs to go back and read what everybody thought before and what actually happened and then go back to the time before that and the time before that. That's funny so I have to quote you. LOL. I'll keep my explanation simple for others: 1. Mike is thinking and planning in the long term. He isn't just thinking about short or medium term goals. 2. Nobody knows the economic conditions four or five years from know, much less the economic pundits themselves talking 24/7 on TV on where we will be in 6 months. 3. MNKD has laid out the foundation for Mike going forward. We heard it over and over at his presentations last winter, for those who listen to Mike rather than dismiss Mike, where their focus is [paraphrase] "Stay focused, but don't ignore external opportunities given the current economic backdrop, to expand pipeline." 4. On top of that, MNKD has their day-to-day operational needs tied to their ability reach certain financial conditions. Sorry it's so simple and not very sexy, but that's what Mike has said at presentations...or, Binder has said during each EC. |
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Post by Clement on May 14, 2023 10:21:48 GMT -5
UTHR paying for plant expansion would certainly bring up interesting speculation since Mannkind no longer owns the plant but is leasing it back. Sorry, let me use different words to explain. UTHR is paying for the increased manufacturing capacity coming this quarter and later this year. MC has said several times that the Danbury facility has plenty of "shell space". So UTHR is not paying for a new building in Danbury, but it is paying for improvements and another assembly line to increase manufacturing capacity. |
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Post by sportsrancho on May 14, 2023 10:51:56 GMT -5
Maybe somebody needs to go back and read what everybody thought before and what actually happened and then go back to the time before that and the time before that. That's funny so I have to quote you. LOL. I'll keep my explanation simple for others: 1. Mike is thinking and planning in the long term. He isn't just thinking about short or medium term goals. 2. Nobody knows the economic conditions four or five years from know, much less the economic pundits themselves talking 24/7 on TV on where we will be in 6 months. 3. MNKD has laid out the foundation for Mike going forward. We heard it over and over at his presentations last winter, for those who listen to Mike rather than dismiss Mike, where their focus is [paraphrase] "Stay focused, but don't ignore external opportunities given the current economic backdrop, to expand pipeline." 4. On top of that, MNKD has their day-to-day operational needs tied to their ability reach certain financial conditions. Sorry it's so simple and not very sexy, but that's what Mike has said at presentations...or, Binder has said during each EC. I agree with all of that, especially the market conditions, which I think I posted in another thread. I was just asking a speculative question. I really don’t have the data on it. |
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Post by agedhippie on May 14, 2023 10:54:59 GMT -5
UTHR paying for plant expansion would certainly bring up interesting speculation since Mannkind no longer owns the plant but is leasing it back. Sorry, let me use different words to explain. UTHR is paying for the increased manufacturing capacity coming this quarter and later this year. MC has said several times that the Danbury facility has plenty of "shell space". So UTHR is not paying for a new building in Danbury, but it is paying for improvements and another assembly line to increase manufacturing capacity. So basically UTHR will own the equipment and pay for the labor to install it on the existing site? Since the manufacturing is a cost plus deal that would make sense since any associated costs would be passed to UTHR any way under the contract. That equipment would then be dedicated to Tyvaso DPI which would free up existing capacity for Afrezza. I would expect UTHR to grow capacity incrementally since it makes no sense to incur capital costs for idle equipment. |
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Post by agedhippie on May 14, 2023 11:01:46 GMT -5
I suppose I should also say that UTHR building their own plant within Danbury gives them the option to take over the production there at a later point. When the Tyvaso and Afrezza lines are co-mingled that would be almost impossible. Once there is an area with lines dedicated to Tyvaso it's a lot easier. That said I doubt they do take it over because of the operational implications (a small plant remote from their existing facilities that they would need to staff and maintain), but it gives an option.
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Post by sportsrancho on May 14, 2023 11:03:43 GMT -5
If we followed sports' reasoning ... then we would all be poor again. Ha! But, that's mytakeonit Why? We need money to grow, once we become profitable we’ll be able to get funding on much better terms. My point is I don’t think this is for M&A. But who knows.🤷♀️ |
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