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Post by agedhippie on Apr 5, 2016 11:20:45 GMT -5
This line jumped out at me: According to the agreement as of today Mannkind has the right to take over or duplicate that role. Inferred from that there is no partner immediately to hand, and the pricing will not change since it is Sanofi (or more accurately the JV) insulin that is being sold. This does not preclude foreign partners, Sanofi can distribute globally, although pricing may be a problem. It seems that in reality we do not get Afrezza back until Q3 given this and the later comment about how long plans will take to be made. The sole change is likely to be marketing but again that seems from the press release to be delayed at least slightly. 'the pricing will not change since it is Sanofi (or more accurately the JV) insulin': If it is JVs insulin than the MNKD would have already received the cash for all of JVs inventory. Did they? It is offset against the JV losses with the balance of the loss paid from the Sanofi loan. I do not know what happens to the loan facility as from my original reading the facility agreement it ended when the agreement did. If it did Mannkind will need the cash to meet the ongoing costs (Section 13.3.e) since the sales in the wind down period are under the same payment terms as earlier. This is complicated by being governed by a new termination agreement which has not been published. |
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Post by coo2002coo on Apr 5, 2016 11:23:38 GMT -5
"Sanofi will continue to distribute Afrezza from its existing inventory until MannKind begins..."
Seems to me pricing and inventory are not yet resolved due to on-going negotiation of a final settlement agreement in Q2.
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Post by agedhippie on Apr 5, 2016 11:24:44 GMT -5
This line jumped out at me: According to the agreement as of today Mannkind has the right to take over or duplicate that role. Inferred from that there is no partner immediately to hand, and the pricing will not change since it is Sanofi (or more accurately the JV) insulin that is being sold. This does not preclude foreign partners, Sanofi can distribute globally, although pricing may be a problem. It seems that in reality we do not get Afrezza back until Q3 given this and the later comment about how long plans will take to be made. The sole change is likely to be marketing but again that seems from the press release to be delayed at least slightly. Are you sure that when they say "distribute" it is simply Sanofi receiving orders from Rx distributors such as McKesson and shipping to their warehouses around the country? If a foreign partner signed on with Mannkind, they would likely have the task of processing orders, warehousing Afrezza and shipping to distributors who supply pharmacies or if they outsourced this, likely not use a competitor such as Sanofi. It depends on who the foreign partner is. The press release just says Sanofi will distribute so it may be that it's simpler to let Sanofi handle the logistics for now. |
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Post by stevil on Apr 5, 2016 12:32:53 GMT -5
So nothing was said about any kind of financial settlement?
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Post by bradleysbest on Apr 5, 2016 13:34:31 GMT -5
Nope
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Post by jurystillout on Apr 5, 2016 13:44:00 GMT -5
until MannKind begins to distribute Afrezza during the third quarter Does this mean no pricing change to existing inventory? Can MNKD distribute on their own prior to 3q inventory supply reduction? No, it doesn't mean anything other than what it say's. SNY will be the distributor until their inventory runs out. We don't know what the arrangements are between mnkd and sny. I would however be very surprised if mnkd allowed sny to set the price just because they are the ones shipping product to pharmacies. |
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Post by agedhippie on Apr 5, 2016 14:00:06 GMT -5
until MannKind begins to distribute Afrezza during the third quarter Does this mean no pricing change to existing inventory? Can MNKD distribute on their own prior to 3q inventory supply reduction? No, it doesn't mean anything other than what it say's. SNY will be the distributor until their inventory runs out. We don't know what the arrangements are between mnkd and sny. I would however be very surprised if mnkd allowed sny to set the price just because they are the ones shipping product to pharmacies. The partnership own inventory and the sale of that inventory is delegated to Sanofi in line with Section 6 and Exhibit B, and the termination clauses say those sections hold for the 180 day wind-up period. If Mannkind want they can buy out that inventory and release Sanofi but I cannot see them wanting to do that, so yes Sanofi absolutely can set the price. Sanofi are doing a lot more that shipping product, they own the product! |
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Post by spiro on Apr 5, 2016 17:01:09 GMT -5
Today marks a new beginning in the history of MNKD. “Mankind.” That word should have new meaning for all of us today. We can’t be consumed by our petty differences anymore. We will be united in our common interests. Perhaps it’s fate that today is April 5, and you will once again be fighting against the shorts… Not from tyranny, oppression, or persecution… but from annihilation. We are fighting for our right to financially survive, to live. to exist. And should we win the day, the Fifth of April will no longer be known as an ordinary day, but as the day the longs declared in one voice: We will not go quietly into the night! We will not vanish without a fight! We’re going to live on! We’re going to survive! Today we celebrate our Independence Day from Sanofi!” Spiro here, just losing money again today, oh well The one constant through all the years, Spiro, has been MNKD. Afrezza has rolled by like an army of shorts. It has been erased like a blackboard, rebuilt and erased again. But MNKD has marked the time. This day, April 5th, this market: it's a part of our past, Spiro. It reminds us of all that once was good and that could be again. Oh... Diabetics will buy Afrezza, Spiro. Diabetics will most definitely buy Afrezza. John here, Just trying to cheer up Spiro, the market was not kind to him today |
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Post by mnholdem on Apr 5, 2016 18:39:21 GMT -5
agedhippie - A minor correction to you statement should be noted. Sanofi paid for the Afrezza shipments, but even those payments are a shared expense by both companies, 35% of which is incurred by MannKind, so it's considered joint ownership. MannKind is still entitled to 35% of the profit from the future sales of the products that were previous shipped and paid for under the Purchasing Agreement.
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Post by mnkdfann on Apr 5, 2016 19:03:42 GMT -5
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Post by kc on Apr 5, 2016 21:15:50 GMT -5
I believe we may be missing the most important point to why this is happening. Could it be that they have to wait to get FDA approval of the new packaging and the new insert. That indicated that that would take time. So you might as well use up the stock that is properly packaged and labeled. I noticed yesterday after the website changed that if you click on the package insert is still showed distribution by Sanofi Adventis . Look at the bottom of page 9 www.afrezza.com/afrezza.pdf |
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Post by mnkdfann on Apr 5, 2016 21:30:47 GMT -5
Come to think of it, in 2 years, couldn't they have gotten a more marketable number like (8XX)-AFREZZA or (8XX)-BREATHE ? I plugged the existing call center number into phonespell.org and the best I got was (877)-FAD-8505. |
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Post by agedhippie on Apr 5, 2016 21:52:23 GMT -5
agedhippie - A minor correction to you statement should be noted. Sanofi paid for the Afrezza shipments, but even those payments are a shared expense by both companies, 35% of which is incurred by MannKind, so it's considered joint ownership. MannKind is still entitled to 35% of the profit from the future sales of the products that were previous shipped and paid for under the Purchasing Agreement. You are correct, my last sentence was wrong. The partnership own that inventory and Sanofi control the marketing for the partnership. Mannkind can now market and sell from Mannkind inventory independently as well if they wish. The flip side is that Mannkind are still liable for their share of expenses in the marketing and sale of that insulin. What is not clear is if the loan facility will still be available since it was co-termed with the partnership and strictly the partnership is now terminated. My guess is that it will remain in place as long as Sanofi is selling Afrezza. |
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