Matt says MNKD gets control

[yossarian]

of AFREZZA by April 4 though there may be some threads left going into July. 

[mnholdem]

I like the fact that Matt states that two international distributors called MannKind within a day of the announcement of Sanofi terminating. These were distributors that were in talks before the Sanofi Agreement was signed and who want to resume talks for Afrezza.

[bradleysbest]

Obviously we need 1 of them to come through for us or else....

[yossarian]

Matt says MNKD had between 59 and 60 million dollars at the end of the year.  Said will need some financing at some point. 

[tonyz]

Matt said that the only payment due this year is $5 million. He clarified that the Sanofi payments received are MNKD's to keep and that at some point will flow through to P/L statement. He said looking to continue to improve cash position but selling shares does not make sense at this time for obvious reasons.

[onemann]

Can someone please post the highlights of the call for those of us that missed it? I'm trying to run through all the posts to pull bits of info out of each one but if someone that listened to the call could do a quick run down I'd greatly appreciate it! Thanks in advance!

[sla55]

Feb 23, 2016 10:50:37 GMT -5 onemann said:

Can someone please post the highlights of the call for those of us that missed it? I'm trying to run through all the posts to pull bits of info out of each one but if someone that listened to the call could do a quick run down I'd greatly appreciate it! Thanks in advance!

RBC Call Recap by kevinmik - YMB

1) Ended 2015 With $59.5 Million In Cash Enough To Sustain Company Into 2017
2) Afrezza Is Mannkind Top Priority & They Will Keep Control In U.S. Through Co-Promotional Agreement
3) In Talks Outside The U.S. Including 2 Previous Companies Contacting Them 2 Days After Sanofi Termination
4) Mannkind Will Take Back Control Of Afrezza By April 5th With Some Residual Things Extended Further Out
5) Did Not Criticize Sanofi Marketing Strategy But Matt Clearly Thought Different Direction Would Have Helped
6) Matt Was Not Lead Person Working With Sanofi Last Year But Was On The Committee
7) Mat Said Sanofi Listened To Mannkind's Suggestions Last Year But Did Things Their Way
8) Large Organizational Structure & Diabetes Drug Pipeline Conflicts At Sanofi Hurt Afrezza Marketing & Sales
9) Mannkind Is A Much Smaller Company & More Nimble To Market Afrezza More Efficiently & Effectively
10) Despite Sanofi's reduced Sales Focus on Afrezza Scripts Are Still Doing Well & Slowly Growing
11) Early Adopters Referred To By Matt As Being Almost Gospel & More Of Them Will Drive Future Sales
12) Mannkind 3 Internal Technosphere Drugs In Development 2 Will Be Partnered & 1 Held By Mannkind
13) Epi Pen New Inhaled Drug Development Will Be Held By Mannkind & Has Huge Potential
14) Technopshere Future Drug Candidates Regulatory Path Wii Be Quick Only Needing Bio-equivalency Trials
15) Alfred Mann Resignation Due To Age & Inability To Travel To Board Meetings Still Actively Involved
16) Mannkind In Talks For Partnership & Licensing Deals That Could Benefit Future Cash Position
17) Short Term Debt Is Only $5 Million Due In 2016 & Deerfield Talking To Mannkind & Wants To Help
18) Money Paid To Mannkind By Sanofi Will Not Be Returned & Will Soon Have Positive Impact Income P/L
19) Some Of Sanofi's Marketing Plans Had They Stayed On Will Be Used By Mannkind (Google Deal ?)
20) Matt Ended On A High Note Stating Mannkind's Epic Turnaround Could Be Told In Article, Book Or In A Movie.

[therealisaching]

A replay is already available to listen if anyone missed it.

investors.mannkindcorp.com/events.cfm?EventType=Webcast

[onemann]

Thanks a lot Sla and Lab Rat! I'll listen to the call now. The only thing I see conflicting in the call breakdown is the cash point. I've only seen reports that it will take us into 2H 2016. I haven't seen any reports that we are good into 2017 yet. I'll listen now, thanks again!

[brentie]

1) Ended 2015 With $59.5 Million In Cash Enough To Sustain Company Into 2017

I think Kevin got #1 wrong. Even at $8-$10 million a month, $59 1/2 million won't last a year.



Keith Markey



Yes. Okay, thanks. And one last question, I was just wondering what is your estimated cash burn rate through 2016?



Matthew Pfeffer



Keith, I know you're asking that question a bunch of times, and I think I have always answered 10 million to 12 million a month.



Keith Markey



Okay.



Matthew Pfeffer



It's not apart from that this time, because I think it will go down, it's really more like 8 million to 10 million a month going forward, but a lot of it depends on timing of raw material purchases, and where our production levels are, quite frankly, because you saw with us the manufacturing production costs, but…



Keith Markey



Yes. You've made a few cutbacks, right. Yes, you've made a few cutbacks, I thought that I'd just revisit. Thank you


seekingalpha.com/article/3669586-mannkinds-mnkd-ceo-hakan-edstrom-q3-2015-results-earnings-call-transcript

[greg]

Brentie,

Your quotation of Markey is dated by many months. 

In any case, I just listened to a replay of the webcast and feel very optimistic. 

I liked Matt's tone and confidence. He also comes across as extremely honest and credible, which is very important to me. 

I would encourage all longs to listen to the webcast, instead of relying on other's assessments.

[onemann]

I also just listened to the call and I agree that Matt sounds confident. I've heard him speak many times and I'm not hearing the nervousness that some speak of. Also, the cash situation is still described as enough to get us into 2H 2016. Nothing huge coming to light here but I would say it was a good call and it's always nice to hear about 1 or 2 companies that called MNKD a day after the SNY termination to start international talks again.

[brentie]

Feb 23, 2016 11:47:04 GMT -5 greg said:

Brentie,

Your quotation of Markey is dated by many months. 

In any case, I just listened to a replay of the webcast and feel very optimistic. 

I liked Matt's tone and confidence. He also comes across as extremely honest and credible, which is very important to me. 

I would encourage all longs to listen to the webcast, instead of relying on other's assessments.

$59.5 million -$5 million owed to Deerfield this year=$54.5 million. Do you really think they can cut the spending down to the $4.54 million a month it would take to make it last a year? By the way, I don't think Matt said it would last a year.

I would urge all longs not to base their investing decisions on Matt's tone and confidence. But it's your money.

[BlueCat]

Feb 23, 2016 12:09:59 GMT -5 brentie said:

Feb 23, 2016 11:47:04 GMT -5 greg said:

Brentie,

Your quotation of Markey is dated by many months. 

In any case, I just listened to a replay of the webcast and feel very optimistic. 

I liked Matt's tone and confidence. He also comes across as extremely honest and credible, which is very important to me. 

I would encourage all longs to listen to the webcast, instead of relying on other's assessments.

$59.5 million -$5 million owed to Deerfield this year=$54.5 million. Do you really think they can cut the spending down to the $4.54 million a month it would take to make it last a year? By the way, I don't think Matt said it would last a year.

I would urge all longs not to base their investing decisions on Matt's tone and confidence. But it's your money.

It is a fair point.

I am basing my decisions not on his tone, but on:

1.  I can only lose $1 more a share.  Selling now will not make a tangible improvement - just lock in my losses.

2.  There are significant opportunities for things to improve.

3.  It is a sit and wait game.


I don't see the BK as end game.  And I don't see a buyout or take private going for less than where it is now.  So from risk/reward stand point-  Matt tone aside - little downside now - great potential upside if I can manage to hold.


Disclosure:  I have not sold any.  But I would not add at this point, even if I were in a position to do so.  I've added/averaged down as much as prudent already and got burnt in process by doing so at still wrong price.  Better to broaden portfolio to reduce risk.

[lakers]

5) Did Not Criticize Sanofi Marketing Strategy But Matt Clearly Thought Different Direction Would Have Helped
6) Matt Was Not Lead Person Working With Sanofi Last Year But Was On The Committee
7) Mat Said Sanofi Listened To Mannkind's Suggestions Last Year But Did Things Their Way
8) Large Organizational Structure & Diabetes Drug Pipeline Conflicts At Sanofi Hurt Afrezza Marketing & Sales
9) Mannkind Is A Much Smaller Company & More Nimble To Market Afrezza More Efficiently & Effectively
10) Despite Sanofi's reduced Sales Focus on Afrezza Scripts Are Still Doing Well & Slowly Growing

Conflict of interest. Mnkd disagreed with Sanofi in JAC but was ignored/overruled. Some thought Mnkd had no ground against Sanofi if Mnkd agreed w/ Sanofi's Marketing plan. Matt was a JAC member. Now he has to play nice to get some indemnity from Sanofi.