Deerfield

[mnkdnyc]

Does anyone know how to read what is really happening with the Deerfield deal.  Are they our largest problem short term as they short the stock down after giving the $40/$80M to mankind.   If I recall, they get to pick up a lot more shares if the stock is below $6 and god forbid, below $3 on the average price of the previous 20 days from the date the trial results came out.  It seems to me that it makes sense for them and their hit men continue to drive this down.  Just looking for an opinion on this topic. 

Off topic, Spiro good morning.  I have heard a lot about you from Dr. Eric W who is in Weston. I think you are in Miami right?  I am Eric's brother in law in Ft. Laud.  I remember you from the KOS days.  Hope all is well.

Rich

[liane]

As best I can tell, Deerfield would get the max number of shares (12 M) at $3.33 ($40 M) if they can hold the average share price at 3.33 for 20 days. Can they do that with help from hedgies - I don't know.

[otherottawaguy]

If Deerfield can get it that low, I'll be selling myself down on the corner to raise additional funds to increase my current positions or maybe I'll just go and extend the LOC again to the max. At 3.33 I might be tempted to do both...

OOG

[StevieRay]

Seems to me Deerfield would simply take a bite off the top of the share price in an arbitrage fashion. This bite off the top really goes to pay the $40 million to MannKind. And then when Deerfield converts they get their shorted shares returned to them. I think there will be continued pressure but not too much to kill it off. Deerfield wants Mannkind to succeed too but they also would like more shares. Short term it will be under pressure. How much pressure is unknown. Also there are 47 million shares short which should put a little buying pressure which will/should offset the selling pressure.
In any arbitrage transaction there is always some risk but the whole point is it is minimal and with so many shorts it really should offset Deerfield's actions.

[mnkdnyc]

Thanks Stevie Ray. And I really like your music. Great guitar skills.

[StevieRay]

Huge blues fan keeping his music alive & well! Love Gary Moore too. Too bad all the great ones leave us too soon.

[BD]

My wife and I attended the Clapton concert in K.C. the day after Stevie Ray Vaughan and his associates, who were touring with Eric, died in the crash. Eric didn't say much about it...just dedicated the evening to SRV. It was a very somber night!

[StevieRay]

Must of been a very tough show for all. I think there were some Clapton folks on the downed chopper too. So very sad.

[mdcenter61]

Saw Stevie Ray at the Majestic Theatre in San Antonio a couple of months before the crash - last concert at the Majestic before the major renovation. He was resplendent in his Sioux Chief Headdress and rocked the house out! One of a kind.

[StevieRay]

I just received this note from my Schwab Account:
MannKind Corp. Research Report On August 16, 2013, MannKind Corp. (MannKind) reported that in accordance a Facility Agreement
dated July 1, 2013 between Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively known as Deerfield)
and the Company, the conditions that obligated Deerfield to purchase the second $40 million tranche of 9.7596 senior secured convertible
notes (the Convertible Notes) have now been accomplished. According to the Company, the second tranche of the Convertible Notes was subject to the
achievement of Phase 3 data from studies 171 and 175 that met the primary efficacy endpoints of these studies. MannKind informed that the Facility
Agreement states that Deerfield must purchase at least four equal tranches of Convertible Notes for total gross proceeds of up to $160 million.
The Company also stated that the closing of the second tranche is slated to happen on or before September 6, 2013.
The Full Research Report on MannKind Corp. -including full detailed breakdown, analyst ratings and price targets - is
available to download free of charge at:
[http://wwwAnalystsCorner.com/ r / fulLresearch_report/ 044e_MNKD]

[mac]

What do you think do Walter Trout?

[liane]

So tomorrow would be the first opportunity Deerfield could convert without having the Aug 14 spike included in the 20 day VWAP. Do they take what they've got? Or do they chance it trying to keep the price down for a while longer? Could be an interesting day. I would think notification of the conversion would be a positive and would remove one more uncertainty.