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Post by purge on Nov 10, 2015 16:40:48 GMT -5
Would it be legal for SNY to have been shorting Mannkind after their partnership agreement was signed?
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Post by patryn on Nov 10, 2015 16:54:28 GMT -5
Would it be legal for SNY to have been shorting Mannkind after their partnership agreement was signed?
Legal, but a serious stretch. Why would a multibillion dollar pharma dabble in shorting stocks. It's like saying Facebook went and shorted Disney for giggles. What would be the point when they have so many other fish to fry? |
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Post by babaoriley on Nov 10, 2015 17:01:27 GMT -5
Purge, the following is academic only, cuz no way that has happened.
Talk about borderline. Even if technically legal, the risk would be off the charts since MNKD succeeding or not is hugely dependent on SNY; it would not be too tough to nail SNY with literally a multi-billion dollar lawsuit and settlement/verdict if that were to happen, not to mention no one would trust them for years.
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Post by purge on Nov 10, 2015 17:20:34 GMT -5
At this moment do you trust SNY? |
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Post by me on Nov 10, 2015 18:24:27 GMT -5
At this moment do you trust SNY? A heck of a lot more than the opinions of someone who thinks it a legitimate question whether SNY was shorting MNKD after the execution of their partnership agreement. |
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Post by jpg on Nov 10, 2015 19:36:01 GMT -5
Sanofi shorting Mannkind would be so insane a move that any CEO doing this would be banned from any job for life (Uber might hire him as a driver?). In an industry that lives or dies by partnership this would be so toxic as to destroy any good partnerships for a decade or more (not to mention the easily won lawsuit that would follow).
I hate to say this but I think you are continuously reaching for stuff that just doesn't make sense. If we follow your logic everyone at Mannkind and Sanofi is shorting. The whole financial world seems to be built around shorting Mannkind?
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Post by liane on Nov 10, 2015 19:45:02 GMT -5
I'm with you jpg. Locking this thread for nonsense.
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Post by rrtzmd on Nov 10, 2015 19:53:41 GMT -5
Sanofi shorting Mannkind would be so insane a move that any CEO doing this would be banned from any job for life (Uber might hire him as a driver?). In an industry that lives or dies by partnership this would be so toxic as to destroy any good partnerships for a decade or more (not to mention the easily won lawsuit that would follow). I hate to say this but I think you are continuously reaching for stuff that just doesn't make sense. If we follow your logic everyone at Mannkind and Sanofi is shorting. The whole financial world seems to be built around shorting Mannkind? While I agree that the probability of SNY shorting MNKD is probably near zero, I don't think it could be called "insane." Look at how the deal is structured. SNY controls all marketing and sales and decides on what qualifies to be included in the losses that MNKD must share. MNKD is stuck paying its share of the losses with the SNY loan facility -- a loan that has seniority over all the other debt and a loan that is secured by everything MNKD owns. On the joint committee, all disputes are ultimately decided by the SNY co-chair. What a prefect set-up! Slow the launch to a snail's pace, incur huge losses that rapidly accelerate MNKD's debt, and short the stock along the way, forcing MNKD into highly dilutive stock deals. And MNKD couldn't do a thing about it! |
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Post by BD on Nov 10, 2015 19:55:38 GMT -5
Liane seems to have forgotten to actually lock the thread, so I'll do that now.
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