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Post by compound26 on May 7, 2015 18:42:47 GMT -5
To me, tomorrow's script numbers are more important than the earnings call. At this point, I do not think there is anything significant going to be announced in the call. So the only thing has any real impact on us right now is the scripts trend. Although I do not pay much attention to the result of a particular week, I would hope our growth trajectory remains intact.
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Post by Deleted on May 7, 2015 18:44:48 GMT -5
I find it very interesting that they have been keeping so much cash on hand while taking additional loan from Sanofi and allowing some of the interest to amortize (apparently). I wonder if they intend to reduce the amount financed through the convertible when it matures. Or perhaps they expect some portion to convert and to pay off the remainder. Not that I think holding cash is the wrong idea at this point. august note.
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Post by trenddiver on May 7, 2015 18:53:05 GMT -5
Wondering why they are spending $9 million + on R&D?? With that kind of R&D investment, maybe they'll have something to say about Technosphere new products.
Trend
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Post by james on May 7, 2015 18:53:51 GMT -5
August - yes, that is when the senior convertibles mature. Cash is almost unchanged at $120.8 for 2 quarters; they are holding all of it when they could have opted not to draw from the Sanofi loan due to plentiful cash on hand. That should be a key to listen for in the CC.
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Post by Deleted on May 7, 2015 18:57:35 GMT -5
August - yes, that is when the senior convertibles mature. Cash is almost unchanged at $120.8 for 2 quarters; they are holding all of it when they could have opted not to draw from the Sanofi loan due to plentiful cash on hand. That should be a key to listen for in the CC. Its unchanged, but they burned $56 mil. They are using the 120 for reserve.
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Post by babaoriley on May 7, 2015 19:09:08 GMT -5
Is this 4.2M part of the 7.1M? matt will probably address in the AM Probably will, and we will be just as confused after the call as we were before the call!!
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Earnings
May 7, 2015 19:10:00 GMT -5
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Post by obamayoumama on May 7, 2015 19:10:00 GMT -5
August - yes, that is when the senior convertibles mature. Cash is almost unchanged at $120.8 for 2 quarters; they are holding all of it when they could have opted not to draw from the Sanofi loan due to plentiful cash on hand. That should be a key to listen for in the CC. [br MNKD needs to address the convertible and make it clear that MNKD has no intentions of doing any form of dilution this year. That the convertible will be cashed out or converted if the stock is higher than $6.80 or renegotiated at better terms. I believe we will hear something in the CC tomorrow regarding the convertible. If MNKD make the no dilution clear, watch the shorts scramble trying to hit the exit at once. I believe that the reason for the high short position has been the allure of a dilutive offering to bail them out.
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Post by hawkfan9 on May 7, 2015 19:24:24 GMT -5
Did anyone notice that the deferred sales is exactly equivalent to the increase in inventory? Deferred sales simply means that Mannkind has received the cash for something they have not yet "earned"--which probably means they have not given the Afrezza to Sanofi yet. Eventually deferred sales and deferred compensation will wind up as a revenue, but will not bring more cash into the company when that happens.
Also, one should note that inventory is valued at the cost to the company. So, depending on the mark-up of Afrezza the real amount(or, should I say retail amount) of Afrezza in inventory can be much, much higher than $16 million
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Earnings
May 7, 2015 19:29:13 GMT -5
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Post by cjc04 on May 7, 2015 19:29:13 GMT -5
I think the answer is simply that MannKind bills Sanofi by the shipment, but instead of a typical Net-30 or Net-60 the agreement somehow ties in payment with sales. It may be similar to consignment sales, where a distributor owes the manufacturer for everything shipped, but pays based on period sales. Technically, they're selling to Sanofi, but because of the profit sharing deal, MannKind is indirectly collecting sales from the consumer. There is a separate sales agreement with Saofi .... I was hoping the details of this would show up now that we're actually selling product to them, but it seems to have just made things more complicated, probably by design.
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Post by mnholdem on May 7, 2015 19:42:48 GMT -5
It occurs to me that we're all reading from a press release. The official SEC filing may contain more information to be disclosed at the conference call.
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Post by garrett on May 7, 2015 19:50:31 GMT -5
I think the answer is simply that MannKind bills Sanofi by the shipment, but instead of a typical Net-30 or Net-60 the agreement somehow ties in payment with sales. It may be similar to consignment sales, where a distributor owes the manufacturer for everything shipped, but pays based on period sales. Technically, they're selling to Sanofi, but because of the profit sharing deal, MannKind is indirectly collecting sales from the consumer. I think that's right mnholdem. It's like a company that's manufacturing product to finish goods inventory and when they actually sell it (bill & deliver) they book it as a sale. The only different here (I think), is MannKind's inventory is sitting at Sanofi to be eventually be sold.
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Post by afrizzle on May 7, 2015 19:51:44 GMT -5
I'd enter the weekend a happy man if they just said something benign like "we can't comment specifically about scripts or sample numbers but we can generalize that they are both above or on plan."
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Post by otherottawaguy on May 7, 2015 20:19:33 GMT -5
what was the interest rate Sanofi was charging vs what credit from the street would cost? If Sanofi rate is lower, it a no brainer. Did I see that they got another 50M milestone, or was that the previous one?
OOG
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Earnings
May 7, 2015 20:28:03 GMT -5
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Post by cjc04 on May 7, 2015 20:28:03 GMT -5
I think the answer is simply that MannKind bills Sanofi by the shipment, but instead of a typical Net-30 or Net-60 the agreement somehow ties in payment with sales. It may be similar to consignment sales, where a distributor owes the manufacturer for everything shipped, but pays based on period sales. Technically, they're selling to Sanofi, but because of the profit sharing deal, MannKind is indirectly collecting sales from the consumer. I think that's right mnholdem. It's like a company that's manufacturing product to finish goods inventory and when they actually sell it (bill & deliver) they book it as a sale. The only different here (I think), is MannKind's inventory is sitting at Sanofi to be eventually be sold. This SHOULD be easy to figure out. 1. Sales agreement with SNY for product 2. Profit agreement with SNY on their sales of A. Where are the retro costs of building A to where it is now (another thing they were passive about) where are all the other itemized issues we're talking about??? I was hoping for some clarity with this first Q report with sales.... Barring something unexpected tomorrow, I guess I'll just continue to assuming all the silence and trickery will someday be to our benefit..... As the sp plummets.
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Post by eddiemoy on May 7, 2015 20:32:37 GMT -5
what was the interest rate Sanofi was charging vs what credit from the street would cost? If Sanofi rate is lower, it a no brainer. Did I see that they got another 50M milestone, or was that the previous one? OOG they had $200m total at the end of 2014 from milestone payments, max $925M, yes they got another $50 this Q which brings the total to $250M from their 2014 year end 10K "Under the Sanofi License Agreement, Sanofi paid us an up-front cash payment of $150.0 million in the third quarter of 2014. As of December 31, 2014, we have earned an additional $50.0 million in milestone payments in connection with the satisfaction of specified manufacturing milestones. We are also eligible to receive up to $725.0 million in additional milestone payments under the Sanofi License Agreement if certain development, regulatory and sales milestones are achieved"
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