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Post by oldfishtowner on Jan 21, 2016 11:18:54 GMT -5
What's interpretation on this bit? "MannKind will also transfer manufacturing technology to the licensee" Is this a transfer of TS IP? That doesn't sit well for nothing upfront + possible $100m down the road + possible ~10% sales down the road Can it be viewed as a spinoff of TS? It wouldn't surprise me that we are spinning of Technosphere. It would disappoint me a great deal. Technosphere has been the reason I bought into MNKD. Don't get me wrong. I'm thrilled with Afrezza and its success in our lives, but I always figured inhalable technologies would revolutionize the industry. I just hope we only transferred of the rights to a few and not the whole shop.. In past presentations MNKD has envisioned Technosphere as the future of MNKD. So, your comments are right on target, Suebeeee1. How good/bad this deal is depends on whether there is a non-compete clause for the indications mentioned. Certainly the deal helps with overhead and G&A, but it doesn't provide the cash MNKD needs to market Afrezza. Neither does it solve the problem of loan payments coming due over the next few years. Likely the milestone payments will be spread out over 4-6 years and substantial royalties may not be forthcoming for 5 or 6 years, if ever. So the big question still is how MNKD will remain solvent until then and how will it obtain the resources to market Afrezza in the near-term?
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Post by Actual Investor on Jan 21, 2016 11:19:08 GMT -5
A copy and paste of the news MannKind Enters Into Collaboration and License Agreement VALENCIA, Calif., Jan. 21, 2016 (GLOBE NEWSWIRE) -- MannKind Corporation (MNKD) (MNKD) today announced that it has entered into a collaboration and license agreement with a newly formed entity, Receptor Life Sciences, Inc., pursuant to which multiple inhaled therapeutic products will be developed to explore their potential to treat conditions such as chronic pain, neurologic diseases and inflammatory disorders.
Under the terms of the agreement, MannKind will perform initial formulation studies and will work with Receptor to develop inhaled formulations of certain undisclosed compounds. MannKind will also transfer manufacturing technology to the licensee, who will be responsible for manufacturing and commercialization activities. The parties will collaborate on the clinical development of investigational products, with Receptor being responsible for all development costs. MannKind will be eligible to receive development and commercialization milestones of up to $102.25 million as well as mid-single to low double-digit royalties on net sales of product.
“We are pleased that Receptor Life Sciences has selected our formulation and delivery technology to advance its portfolio of innovative inhaled products,” said Matthew Pfeffer, Chief Executive Officer of MannKind. “This collaboration demonstrates the fundamental value of our platform technology while the risk-sharing structure of the transaction allows us to diversify our product opportunities without losing focus on our lead program.”
About Receptor Life Sciences, Inc. Receptor Life Sciences, Inc. is a pharmaceutical development company based in Seattle, Washington. Receptor is quietly laying the foundation for groundbreaking new products in the specialty pharmaceutical market.
Inquiries: info@receptorlife.com finance.yahoo.com/news/mannkind-enters-collaboration-license-agreement-140000395.html
"The parties will collaborate on the clinical development of investigational products, with Receptor being responsible for all development costs."
I think the key phrase in the entire release is that Receptor is responsible for ALL development costs. That covers Mannkind's expenses.
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Post by compound26 on Jan 21, 2016 11:20:42 GMT -5
Amazing! I also thought of Chris Veihbacher when I read the announcement... regardless, let's hope (I'm not afraid to use that word) that whoever is behind our new partner is a visionary with lots of financial muscle. That's also my first thought on reading the announcement as that seems to fit what Chris Veihbacher is doing now.
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Post by BlueCat on Jan 21, 2016 11:24:41 GMT -5
My response was like Parrerob and a few other comments.
Kills (2) with one:
1. Income. Near-term tied to development milestones only since RLS is responsible for GTM. Small, but keeps lights on.
2. Reduces costs significantly. removes R&D costs for drugs that will take a few years to realize GTM, allowing them to redirect efforts to Afrezza GTM, and drugs they've already done the primary development on (pulmonary?)
Yes, could be prelim step towards spin out of TS - but somehow I doubt it.
Seems to me more like Matt being efficient. Trends these days are for CEOs to move back to what business "Core" (development), reduce complexity to allow company to focus more on what they can realize success with. Basically - let's do fewer things well.
I don't think he gave away the Kingdom. But I don't think this is that immediate pot of gold, either. And I think without pot of gold, stock isn't going anywhere in near term.
But geez. Can't win, can they?
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Post by peppy on Jan 21, 2016 11:25:05 GMT -5
Amazing! I also thought of Chris Veihbacher when I read the announcement... regardless, let's hope (I'm not afraid to use that word) that whoever is behind our new partner is a visionary with lots of financial muscle. That's also my first thought on reading the announcement as that seems to fit what Chris Veihbacher is doing now. IF this is the case, really good news. IF
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Post by mnholdem on Jan 21, 2016 11:28:47 GMT -5
The agreement is NOT for MannKind products. I'm starting a new thread.
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Deleted
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Post by Deleted on Jan 21, 2016 11:34:06 GMT -5
Waiting for color...not enough here it make MNKD a buy. Could be Al trying to kickstart interest in TS... My hedge fund buddy short MNKD suggested this to me earlier.
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Post by prosper on Jan 21, 2016 12:04:14 GMT -5
If the royalty of high single to low double digits, for example 10% seems low to any of us I think it is actually better than the SNY deal. The SNY deal was sharing of profits and losses where we split about 1/3 in either direction. That includes profit after all costs. I think we end up with a much higher net with this new deal Comments?
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naykitop
Newbie
Posts: 14
Sentiment: Long
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Post by naykitop on Jan 21, 2016 12:05:53 GMT -5
Would have been nice to see a quote from a Receptor exec in the same PR.
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Post by bearcatmax on Jan 21, 2016 12:10:29 GMT -5
Per Mannkind Twitter: CEO Matt Pfeffer, “Receptor Life Sciences is a completely independent entity from MannKind Corporation."
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Post by babaoriley on Jan 21, 2016 12:46:00 GMT -5
No one should be surprised or even disappointed over this deal. For the various and sundry reasons we all know, MNKD is not in a position to drive a hard bargain. It has been speculated by some that TS deals would come with a multi-million dollar up front payment - I have been quite skeptical about that thinking. This is not a charitable business we're in, everyone is out for the best deal they can get. I'm pleased someone (the licensee) has noticed that this is a good opportunity for them. Very best of luck to them.
Given the need for cash, it would seem that our new licensee has been assured, one way or the other, that MNKD has the wherewithal to survive for a couple of years at least, after all, the licensee doesn't want to be bogged down in a MNKD BK proceeding at any time, especially not anytime soon. And the licensee is going to be spending lots of time and money on this project, apparently. One would think that the licensee is bankrolled pretty substantially, such that if there is progress, the money will continue to be there to continue the development of whatever it is exactly they intend to develop.
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Post by mnkdnewb on Jan 21, 2016 12:57:58 GMT -5
No upfront money. That is disappointing. Hope we hear soon on what it takes to achieve an initial milestone. at the GS Conference, i believe Matt said there wouldn't be a large (or any) upfront payment, but that milestones would be achievable rather quickly.
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Post by mnkdnewb on Jan 21, 2016 13:01:17 GMT -5
Hard to comment on a deal with a "newly formed entity" when that entity is responsible for all development costs and the compensation is on milestones and royalties. It would be nice to know if this entity has the financing and capability to execute on their part of the deal or whether this agreement is largely illusory. This is not the kind of company venture capital likes to invest in, so it will be interesting to see where their money comes from. In pharma development, always follow the money! Since the partner is not public information will be scarce. There is a profile for a Canadian company by the same name with two drugs, one a high-dose Vitamin D and the other a drug delivery technology, but the link to their homepage is dead so it is impossible to tell if this is the same company or not. personally, i am glad it is a private company. Less negative impact from "shorts" or b.s. manipulation. i still wouldn't be surprised if MNKD goes private to avoid the same.
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Post by charlespk on Jan 21, 2016 13:11:46 GMT -5
Would like to know if any of our long fellow board members is buying today after this announcement .
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Post by Deleted on Jan 21, 2016 13:19:55 GMT -5
Would like to know if any of our long fellow board members is buying today after this announcement . smh how does it matter..
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