|
|
Post by oldsoul on Dec 9, 2015 11:51:52 GMT -5
Does anyone know what happened to the $150 million Sanofi gave MannKind?
Last I remember these funds were to be kept off of MannKinds' balance sheet till early in 2016.
If this is still the case, why is anyone worried about their ability to fund next years operations?
|
|
|
|
Post by chuck on Dec 9, 2015 11:54:56 GMT -5
All of its been spent already.
|
|
|
|
Post by jeremg on Dec 9, 2015 12:06:55 GMT -5
Does anyone know what happened to the $150 million Sanofi gave MannKind? Last I remember these funds were to be kept off of MannKinds' balance sheet till early in 2016. If this is still the case, why is anyone worried about their ability to fund next years operations? If I remember correctly this money has been spent and/or is used to offset the SNY loan facility as collateral. Regardless I know it IS accounted for and the confusion in the past was simply with the strange way Matt had to book it on the balance sheet. |
|
|
|
Post by oldsoul on Dec 10, 2015 23:23:54 GMT -5
Sorry, I can't buy into that its all already been spent.
Don't believe that total expenditures for the year to date have reached the $150 million mark.
Anyone have any other insights as to what has happened to these funds?
|
|
|
|
Post by dallasfan on Dec 11, 2015 1:47:30 GMT -5
I believe MNKD has to book a profitable quarter before the could show it on the balance sheet and actually use the funds.
|
|
|
|
Post by rockstarrick on Dec 11, 2015 2:00:20 GMT -5
Sorry, I can't buy into that its all already been spent. Don't believe that total expenditures for the year to date have reached the $150 million mark. Anyone have any other insights as to what has happened to these funds? I'm not sure what has happened to the milestone payments received, but here is a list of milestone payments and what is required to receive them. from lakers, In consideration for the rights granted to Sanofi by us under the Sanofi License Agreement, upon effectiveness of the Sanofi License Agreement, we will receive an upfront payment of $150.0 million. If certain manufacturing, regulatory and sales milestones are achieved, we will also eligible to receive up to $775.0 million in milestone payments, of which $75.0 million in milestone payments relate to certain development and manufacturing milestone events, $50.0 million in milestone payments relate to the filing and completion of regulatory approvals and $650.0 million in milestone payments relate to the achievement of certain product sales milestones. In addition, worldwide profits and losses be shared 65% by Sanofi and 35% by us. [$25M remained for Qualifying Sny's insulin for Afrezza. $30M for EU, $20M for Japan approval. $250M for annual Afrezza sale of first $250M probably, dollar bonus for dollar rev.] i hope this was helpful Read more: mnkd.proboards.com/user/1882/recent#ixzz3tzcVkew3 |
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Dec 11, 2015 10:18:25 GMT -5
It is listed on the balance sheet under current liabilities.
Deferred payments from collaboration $197M
|
|
|
|
Post by chuck on Dec 11, 2015 10:45:18 GMT -5
Sorry, I can't buy into that its all already been spent. Don't believe that total expenditures for the year to date have reached the $150 million mark. Anyone have any other insights as to what has happened to these funds? its in their financials. If u can't spare 5 minutes to look for yourself then ok. |
|
|
|
Post by ezrasfund on Dec 11, 2015 11:14:13 GMT -5
It has been spent. $10M/month cash burn; 2 additional fill/finish lines at $13M/each; repayment of Bank of America loan used some of the funds. For accounting purposes the milestone payments could not be "booked as revenue" until Afrezza and the Sanofi JV become profitable, because of the offsetting liability of the JV expenses covered by the Sanofi $175M line of credit. But the cash was in their bank account and that cash on hand is dwindling too fast.
Afrezza is everything Al Mann claimed and more. It may become a true blockbuster in 5 years. MNKD will probably not survive to see that day. When Al began this journey 20 years ago it may have seemed like he had sufficient capital. Today it is clear he and his fellow investors do not have the needed staying power. And remember that although Al is/was a billionaire, much of that money is already tied up in MNKD and is not a pile of assets that can help MNKD.
When Afrezza went to market in February anything was possible. Now we know that afrezza is proving its effectiveness every day, but acceptance by the medical establishment will apparently take too long for MNKD to survive.
|
|
|
|
Post by kball on Dec 11, 2015 11:31:11 GMT -5
It has been spent. $10M/month cash burn; 2 additional fill/finish lines at $13M/each; repayment of Bank of America loan used some of the funds. For accounting purposes the milestone payments could not be "booked as revenue" until Afrezza and the Sanofi JV become profitable, because of the offsetting liability of the JV expenses covered by the Sanofi $175M line of credit. But the cash was in their bank account and that cash on hand is dwindling too fast. Afrezza is everything Al Mann claimed and more. It may become a true blockbuster in 5 years. MNKD will probably not survive to see that day. When Al began this journey 20 years ago it may have seemed like he had sufficient capital. Today it is clear he and his fellow investors do not have the needed staying power. And remember that although Al is/was a billionaire, much of that money is already tied up in MNKD and is not a pile of assets that can help MNKD. When Afrezza went to market in February anything was possible. Now we know that afrezza is proving its effectiveness every day, but acceptance by the medical establishment will apparently take too long for MNKD to survive.Damn gloomy assessment from a much admired poster. And still i hope... |
|
|
|
Post by vissertrades on Dec 11, 2015 11:41:16 GMT -5
Thought they had an "Embarrassment of Riches"? Hopefully their "partner" and/or future "partners" will help them stay afloat...
|
|
|
|
Post by bradleysbest on Dec 11, 2015 11:45:00 GMT -5
Embarrassment of riches was not true, at the mercy of SNY to get trials, label changed, DTC , EU approval before we will see an increase in share price! Can MNKD stay afloat until that happens?
|
|
|
|
Post by figglebird on Dec 11, 2015 11:47:58 GMT -5
Milestone payments with respect to licensing deals that are by nature derived off IP are, as it has been explained, accounted for in the same way ADVANCES are - thus are for accounting pirposes they are notated as LIABILITIES - this is uniform throughout, public or private businesses.
Prudent - that's all.
Cash was there - cannot elaborate whether or not it still is but it will not be seen on balance sheet as free cash - though for all intents and purposes it is.
|
|
|
|
Post by purge on Dec 11, 2015 12:07:27 GMT -5
Do you guys all want to know what bothers me the most right now at this point? There is so little mannkind can do. We are dependent on Sanofi to become successful. I honestly believe a local compounding pharmacy could put together a sales team and get more scripts.
|
|
|
|
Post by compound26 on Dec 11, 2015 12:07:46 GMT -5
It has been spent. $10M/month cash burn; 2 additional fill/finish lines at $13M/each; repayment of Bank of America loan used some of the funds. For accounting purposes the milestone payments could not be "booked as revenue" until Afrezza and the Sanofi JV become profitable, because of the offsetting liability of the JV expenses covered by the Sanofi $175M line of credit. But the cash was in their bank account and that cash on hand is dwindling too fast. Afrezza is everything Al Mann claimed and more. It may become a true blockbuster in 5 years. MNKD will probably not survive to see that day. When Al began this journey 20 years ago it may have seemed like he had sufficient capital. Today it is clear he and his fellow investors do not have the needed staying power. And remember that although Al is/was a billionaire, much of that money is already tied up in MNKD and is not a pile of assets that can help MNKD. When Afrezza went to market in February anything was possible. Now we know that afrezza is proving its effectiveness every day, but acceptance by the medical establishment will apparently take too long for MNKD to survive.The above assessment is too pessimistic. First, even if Mannkind has to do a second offering at $1 per share (which I think is not needed and very unlikely). If they sell 100 million shares at that price, they will raise $100 million. And 100 million shares is less than 25% dilution. Add $100 million to the existing financing in place, that will be enough to support Mannkind to second half of 2017. With the healthy growth of refills we are currently seeing, Afrezza will sell at least 10 million a quarter a year from now, and more than that by the second half of 2017. And if necessary, Mannkind can always choose to suspend the other TS application studies temporarily, that will save them a few millions a quarter. That is to say, if nothing else happens, by second half of 2017, Mannkind will be much closer to break even. Wouldn't that enable Mannkind to raise additional funds at that time? I would think so. And as you said it " now we know that afrezza is proving its effectiveness every day", won't there be some BPs interested in getting involved, if Sanofi is not actively promoting it? I got to believe there are interested parties there. And as we have seen in the Al Mann gala video, Al has friends at many BPs, e.g., Medtronics and Dexcom. If he really needs it, he will be able to seek some financial support from some of his friends, especially if you consider Al's track record and the fact that "now we know that afrezza is proving its effectiveness every day". I think at this point, Al is still seeking to get funds from the open market, as we have seen with the TASE move. But if he can not get sufficient funds from the open market, a TS partnership, or a Sanofi milestone or other support, he will still be able to pull some financial support from his friends. |
|
