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Post by cppoly on Jan 2, 2024 6:21:18 GMT -5
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Post by sportsrancho on Jan 2, 2024 6:36:54 GMT -5
WESTLAKE VILLAGE, Calif., Jan. 02, 2024 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq: MNKD) announced that on December 27, 2023 it sold a 1% royalty in net sales of Tyvaso DPI® (treprostinil) inhalation powder in exchange for up to $200 million, including the purchase price of $150 million and an additional potential milestone payment of up to $50 million.
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Post by agedhippie on Jan 2, 2024 6:42:33 GMT -5
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Post by neil36 on Jan 2, 2024 7:20:50 GMT -5
So this deal values the entire Tyvaso DPI royalty stream at $1.5 to 2.0 billion
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Post by sayhey24 on Jan 2, 2024 7:25:12 GMT -5
I guess this was one way to raise money for some of the trials. To bad they didn't want to buy V-Go.
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Post by sayhey24 on Jan 2, 2024 7:29:50 GMT -5
So this deal values the entire Tyvaso DPI royalty stream at $1.5 to 2.0 billion yep, NPV $15B to $20B in total UTHR sales |
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Post by agedhippie on Jan 2, 2024 8:11:50 GMT -5
So this deal values the entire Tyvaso DPI royalty stream at $1.5 to 2.0 billion yep, NPV $15B to $20B in total UTHR sales That's not an NPV, it a sales number, and a fairly random one. The two are utterly different. A couple of reasons why it's not an NPV; there is a cap on payments to Sagard at $3.5bn royalty revenue to MNKD per calendar year (Sagard get nothing for any excess), and secondly you don't know the discount rate so you cannot calculate the NPV. |
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Post by Clement on Jan 2, 2024 8:13:04 GMT -5
I guess this was one way to raise money for some of the trials. To bad they didn't want to buy V-Go. What will this money might be used for: - clinical trials ... peds, clofazimine, nintedanib - pay down debt - advance other pipeline candidates which have been put on back burner because of expense - buy another pipeline candidate or small biotech - build out manufacturing for clofazimine or nintedanib - etc I like the first two best! |
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Post by uvula on Jan 2, 2024 8:28:12 GMT -5
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Post by anderson on Jan 2, 2024 8:28:27 GMT -5
Hopefully they will pay off the Midcap loan early even though it has a 1% early termination fee, it is just to toxic. "The MidCap credit facility, as amended, contains customary affirmative covenants and customary negative covenants limiting the Company’s ability and the ability of the Company’s subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock and make investments, in each case subject to certain exceptions. The Company must also comply with a financial covenant relating to trailing twelve month minimum Afrezza net revenue, tested on a monthly basis, unless the Company has $90.0 million or more of unrestricted cash and short-term investments. As of September 30, 2023, the Company was in compliance with the financial covenant."
Should be ~33.2 mil to pay off.
"Cash, cash equivalents and investments as of September 30, 2023 were $144.3 million."
So currently $294.3 mil if we are breaking even. So $261.3 after it is paid off. Senior notes are not able to be paid off at this time. And still 2 years(2026) till MNKD can buy back the factory.
Paying off Midcap will free up the 90 mil finical covenant as well as having to get MidCap to agree to acquisitions, stock repurchase, etc.
So what is MNKD wanting to buy?
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Post by anderson on Jan 2, 2024 8:48:10 GMT -5
yep, NPV $15B to $20B in total UTHR sales That's not an NPV, it a sales number, and a fairly random one. The two are utterly different. A couple of reasons why it's not an NPV; there is a cap on payments to Sagard at $3.5bn royalty revenue to MNKD per calendar year (Sagard get nothing for any excess), and secondly you don't know the discount rate so you cannot calculate the NPV. The $3.5bn cap is only if milestone A and B are not achieved. If either is they get the 1% on all. So if it goes big early MNKD gets either A $50(1.9b sales by 2026) or B $45(2.3bn sales 2027)mil more and Sagard gets more royalties. It is a nice give and take. Caps payments if milestones are not meet and it goes big later. |
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Post by prcgorman2 on Jan 2, 2024 9:20:31 GMT -5
It could help reduce volatility in the share price pegged to news of LQDA and UTHR. I’ve also been wondering what, if anything, MannKind was going to do to prepare for the $230M convertible bond retirement (in 2026?). Just waiting and hoping the share price is high enough for a conversion wouldn’t be much of a plan and to the contrary, Mr. Binder has proven to be good at his job. I suppose this could have something to do with that bond retirement plan even if it is only really meant to accelerate clofazamine, for example.
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Post by dh4mizzou on Jan 2, 2024 9:33:01 GMT -5
Someone seems to like the deal.
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Post by cjm18 on Jan 2, 2024 9:35:55 GMT -5
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Post by thekid2499 on Jan 2, 2024 10:00:07 GMT -5
I think it will be well received because it shows that an independent firm valued the Tyvaso DPI revenue stream as being worth $1.5 billion presently. That I think will resonate a bit in the market when you have a company that is either break even or close to break even and is only currently valued at ~$1 billion.
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