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Post by kbrion77 on May 9, 2016 15:22:56 GMT -5
I expect nothing earth shattering coming out of the call in order to preserve my mental health from the get go. However, like others I would like to understand where the funds are coming from to cover their expenses, including those related to new hires. I also would really love to learn the identity of RLS and their role in the big picture as well as hear of progress with respect to the label and formularies. The latter are likely pipe dreams but dreams nonetheless.  I dont know if I am annoyed by the 250k from RLS or happy about it I actually laughed out loud when I read it. I'm pretty terrified of this call though. |
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Post by matt on May 9, 2016 15:24:08 GMT -5
Just got the PR. Cash & Cash Equiv 12-31-15 were $59.1 mm Cash & Cash Equiv 1-31-16 were $27.7 mm I thought they had to keep $25 mm on hand and if so, should they have not needed some cash the first week of April? If they tapped some of the $30mm line from the Mann Group, would they have had to do a PR? Explanations appreciated. Usually debt covenants for public companies are tied to quarterly reporting so the company must be compliant on the last day of the quarter. While you are correct that cash probably went below the threshold for compliance some time in April, that does not trigger the default provisions until June 30. If enough money is raised during the quarter so that the June 30 balance is in compliance then there is no issue.
As for tapping the Mann Group credit line, the SEC does not require a PR for draws against a previously disclosed financing vehicle.
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Post by Deleted on May 9, 2016 15:34:30 GMT -5
I dont know if I am annoyed by the 250k from RLS or happy about it I actually laughed out loud when I read it. I'm pretty terrified of this call though. Right, its kinda comical. Hey, I just lost 10,000 at the black jack table but on the way out I found a quarter on the ground! I have trimmed my position, and have traded the stock this year only keeping gains in shares. I am still down a lot but I wont allow this company to make me feel that way anymore about my money. |
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Post by end2war on May 9, 2016 15:45:27 GMT -5
Deals said to be in negotiation were not completed.
10Q says,
"During the three months ended March 31, 2016 and 2015 we did not recognize any revenue. Due to the termination of the Sanofi License Agreement and based on our current operating plan, we expect to recognize, likely within 2016, $17.7 million as product sales from collaboration, $13.5 million as product costs from collaboration and income from collaboration related to upfront and milestone payments in excess of $100 million, which amounts are deferred as of March 31, 2016 due to the revenue recognition criteria not being met as of such date."
Also, risk factors include:
"We also intend to seek regional partnerships for the development and commercialization of AFREZZA in foreign jurisdictions where there are appropriate commercial opportunities. It may be difficult to find a new collaboration partner that is willing to devote the time and resources necessary to successfully commercialize AFREZZA. Collaborations with third parties may require us to relinquish material rights, including revenue from commercialization, on terms that are less attractive than our previous collaboration with Sanofi or to assume material ongoing development obligations that we would have to fund. These collaboration arrangements are complex and time-consuming to negotiate, and if we are unable to reach agreements with third-party collaborators, we may fail to meet our business objectives and our financial condition may be adversely affected. We may also face significant competition in seeking collaboration partners, especially in the current market, and may not be able to find a suitable collaboration partner in a timely manner on acceptable terms, or at all. Any of these factors could cause delay or prevent the successful commercialization of AFREZZA and could have a material and adverse impact on our business, financial condition and results of operations and the market price of our common stock and other securities could decline."
10Q lists possible issues with SNY and suggests to me that there are some serious discussions ongoing about how the termination will resolve, including the risk of litigation:
"During the transition period, we will be dependent on Sanofi to perform certain activities related to AFREZZA, which subjects us to a number of risks, including:
• Sanofi may not perform as expected and we are not be able to control the amount and timing of resources that Sanofi devotes to the transition;
• there may be disputes between us and Sanofi that may result in the delay of the achievement of regulatory and commercial objectives, or costly litigation or arbitration that diverts our management’s attention and resources;
• the manner in which Sanofi effects the transition could adversely impact the development of or sales of AFREZZA and failure to comply with applicable regulatory guidelines could result in administrative or judicially imposed sanctions, including warning letters, civil and criminal penalties, injunctions, product seizures or detention, product recalls, total or partial suspension of production and refusal to approve any new drug applications;
• business combinations or significant changes in Sanofi’s business strategy or failure to apply financial and other resources to the transition may also adversely affect Sanofi’s ability to perform its obligations; and
• Sanofi may use our proprietary information in such a way as to invite litigation that could jeopardize or invalidate our proprietary information or expose us to potential litigation.
"
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Post by cathode on May 9, 2016 16:33:53 GMT -5
Interesting things I saw in the 10Q:
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Post by wmdhunt on May 9, 2016 16:44:06 GMT -5
"Selling" insulin back to Sanofi feels like using the money you got from your plasma to a crack dealer so he/she can make you even weaker.
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Post by Chris-C on May 9, 2016 16:50:06 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups!
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Post by Deleted on May 9, 2016 16:51:16 GMT -5
Strange call. Only two questions or only willing to take two questions.
They have a partner and are still negotiating terms.
OR
They have nothing as he is not ruling out a secondary offering.
Outside of RLS IMO Technosphere applications seem to be a pipe dream.
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Post by mydogskip on May 9, 2016 16:51:56 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! the sad thing this isn't a start up and Matt did a huge disservice by making it sound in the last call that investors would get the info needed about how they are going to finance the rest of the year. I can't say he did a good job. He still left the most important issue unanswered with the exception of the fact they will dilute more. |
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Post by factspls88 on May 9, 2016 16:52:31 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! Matt always sounds like he wants to make an announcement. |
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Post by Deleted on May 9, 2016 16:54:23 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! Agreed. Sounds like from a commercialization standpoint, they are going to talk more about Afrezza's capabilities. Money won't be an issue. Yes, perhaps some dilution but the $30 mm LOC from The Mann Group, $50 ATM and the insulin buyback from Sanofi gives them up to $130mm cash. You put 70 feet on the street along with the diabetes nurse educators, a lower price, reduced issues pertaining to Spirometry and improved handling of the prior authorizations and see where NRx and TRx are by years end. Remember, steady week over week improvement will draw attention. They are building the foundation and if it shows promise with the initial group of sales people, SP picks up and MNKD can hire another 70 reps. |
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Post by nemzter on May 9, 2016 16:55:08 GMT -5
I wonder if they'll dilute after the shareholders meeting, I'm hoping the SP will get close enough for me to sell at break-even before doing so.
GLTA
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Post by Deleted on May 9, 2016 16:55:16 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! Matt always sounds like he wants to make an announcement. This IMO is what makes people not trust him. He needs to close deals before making it sound like he has something for share holders. His last call made it sound like he had it in the bag, and it was not there. I guess everyone may decipher the message differently. I get him being excited but I also get the frustration from not being able to deliver on time. |
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Post by Deleted on May 9, 2016 16:55:51 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! the sad thing this isn't a start up and Matt did a huge disservice by making it sound in the last call that investors would get the info needed about how they are going to finance the rest of the year. I can't say he did a good job. He still left the most important issue unanswered with the exception of the fact they will dilute more. And if the negotiations are taking longer than expected, what the hell do you expect him to say, seriously. |
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Post by daduke38 on May 9, 2016 16:55:56 GMT -5
Overall, I thought it sounded positive, and that Matt desperately wanted to make an announcement by today, but the timing did not work out. What else is new with Mannkind's fortunes? This is the Rodney Dangerfield of pharma startups! Chris, we usually seem on the same page, but I thought he stopped just short of stating dilution. Didn't he state that no international deals would happen in time to help financing? Hope you are right, though. |
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