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Post by Deleted on May 7, 2015 20:43:07 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" incorrect. They have received $150 + $50. Theres another $25 that is supposed tied to line 2/3 CMC acceptance which should be received in 2Q
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Post by thekindaguyiyam on May 7, 2015 20:43:40 GMT -5
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!! thanks for the confirmation. we be ignorant; but not unedjukated. Info unfolds as it does.
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Post by kc on May 7, 2015 20:51:17 GMT -5
One thing that we all need to keep in mind the terms of the senior notes are horrendous and like junk bond financing. They took the best deal they could to stay a float. I have not read them in a year but I think they were paying over 12% interest on them as the risk and chance of default was high when they signed them and sold their sole to stay in business and continue development. Times have changed. Mannkind achieved their milestones. 2014 they achieved FDA approval, they partnered with a quality company Sanofi. Since that partnership they recorded 200 million in milestone payments, launched production of Afrezza. Added a 12U cartridge and achieved 7.1 million in Afrezza shipments. So in August 2015 when the notes come due it will be a whole new game. Mannkind with Sanofi as a partner will be able to refinance that high cost debt with low rates that are no longer unserious as they have a good story to sell with sales of Afrezza in the US and the future approval and sales in the UK and Europe. Eventually sales in a possible 120 markets. The future is very bright for MannKind. Afrezza is a game changer for the Diabetic as it really offers a new novel treatment that works as Al Mann had anticipated. Long term shareholders will benefit from their investment in the company and knowing that they helped get a great product with a DISRUPTIVE TECHNOLOGY delivery system to market. 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 factspls88 on May 7, 2015 21:11:26 GMT -5
Is there a way to figure out how much sample they produced/distributed? IMO the only way to know is for someone to ask, and I doubt mnkd would answer the question - but I suppose you never know. Samples often fall under (and are buried in) the broader category of marketing expense and would be on SNY's P&L. Hopefully we'll learn more about how things are being accounted for tomorrow.
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Post by tigiron on May 7, 2015 21:28:38 GMT -5
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" incorrect. They have received $150 + $50. Theres another $25 that is supposed tied to line 2/3 CMC acceptance which should be received in 2Q This is confusing, in both reports, MNKD explicitly mentioned the $50M milestone. Hope they can clarify tomorrow.
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Post by tigiron on May 7, 2015 21:31:13 GMT -5
The following are lines concerning MNKD/SNY partnership, Q1 15 Q4 14
Inventory 16,789 9,670
Receivables from collaboration 4,282 50,436
Deferred product costs from collaboration 6,251 —
Deferred product sales from collaboration 7,050 —
Deferred payments from collaboration 185,059 197,403
Can anybody make sense of the above with regard to cost/sale, profit margin etc? Shouldn't Receivables from collaboration 4,282 be part of revenue?
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Post by jpg on May 7, 2015 21:31:44 GMT -5
With the milestones (not including lines 2 and 3) and cash at hand how much cash will they have after paying the August note?
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Post by Deleted on May 7, 2015 21:33:36 GMT -5
incorrect. They have received $150 + $50. Theres another $25 that is supposed tied to line 2/3 CMC acceptance which should be received in 2Q This is confusing, in both reports, MNKD explicitly mentioned the $50M milestone. Hope they can clarify tomorrow. whats confusing? They received 150mil up front, then another 50 mil (25 + 25) that was reported previously (On Jan 8th). It occurred after the 4Q ended so it showed up in the 1Q cash number, but they accrued the deferred amount on the books.
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Post by babaoriley on May 7, 2015 21:34:03 GMT -5
Hey, KC, not sure what kind of great interest rate we'll get on a refi of those notes. I'm looking at less than 12%, but still around 8%, which is relatively high, but a lot lower than 12%. I don't think we're seasoned enough to get 5 or 6%. But if the refi is only for a year (at least the initial rate is only fixed for a year), perhaps we can either retire the debt then, or get a much better rate the following year, based on meeting certain financial covenants.
Not too worried about that debt.
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Post by babaoriley on May 7, 2015 21:40:46 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. "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." Obamayoumama, I think that's a great point, and I hope you're exactly right! Of course, one thing I doubt is that the shorts will scramble en masse, that doesn't happen. However, enough could want out to do our share price a world of good!! With 100 million shares short, even a small percentage of them bailing after such news would be very good. And that kind of announcement could be made tomorrow, but you know how these conference calls go, "we have various options we're exploring regarding the debenture...." blah, blah, blah. Anyway, unless I'm struck by insomnia tomorrow morning, I'll wait to get a synopsis of the call from Spiro, and then listen to it tomorrow evening. I think red or green will give some indication as to how the call was received. But, like in the past, don't expect much at all, save the usual platitudes. Gee, I wonder if the Board has given the company any further direction on Technosphere development - or perhaps management is due to report the current status to the Board in, say, July! LOL!
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Post by Deleted on May 7, 2015 21:48:30 GMT -5
With the milestones (not including lines 2 and 3) and cash at hand how much cash will they have after paying the August note? They have 120 mil cash. Note is 100 mil. Cash burn is 20 mil/quarter. If they pay the note, they'll need to tap Mann for the remaining 30 mil, and the 50 mil atm. With the next 25 mil milestone coming this year, they'd have enough cash to end out the year.
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Post by eddiemoy on May 7, 2015 21:50:59 GMT -5
This is confusing, in both reports, MNKD explicitly mentioned the $50M milestone. Hope they can clarify tomorrow. whats confusing? They received 150mil up front, then another 50 mil (25 + 25) that was reported previously (On Jan 8th). It occurred after the 4Q ended so it showed up in the 1Q cash number, but they accrued the deferred amount on the books. what is confusing was that they earned the 50m in Q4, but received it in Q1. i double counted the 50m, thought they received the 50m in q4 of 2014.
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Post by jpg on May 7, 2015 22:11:47 GMT -5
With the milestones (not including lines 2 and 3) and cash at hand how much cash will they have after paying the August note? They have 120 mil cash. Note is 100 mil. Cash burn is 20 mil/quarter. If they pay the note, they'll need to tap Mann for the remaining 30 mil, and the 50 mil atm. With the next 25 mil milestone coming this year, they'd have enough cash to end out the year. Wouldn't many of their expenses be switchable to the Sanofi line of credit?
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Post by kball on May 8, 2015 5:40:12 GMT -5
I see red people
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Earnings
May 8, 2015 6:54:11 GMT -5
via mobile
Post by Deleted on May 8, 2015 6:54:11 GMT -5
They have 120 mil cash. Note is 100 mil. Cash burn is 20 mil/quarter. If they pay the note, they'll need to tap Mann for the remaining 30 mil, and the 50 mil atm. With the next 25 mil milestone coming this year, they'd have enough cash to end out the year. Wouldn't many of their expenses be switchable to the Sanofi line of credit? That 20 mil is non afrezza
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