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Post by mnholdem on Nov 3, 2016 7:39:20 GMT -5
A better label will take the litigation fear out of the picture which is a concern from the few endos I spoke with. I think you two jumped threads !!🎯 Nah, we were replying to agedhippie's comment that "to change that perception you need solid trial data and an ensuing label change. Without that, and I think it is safe to say that will not happen any time soon, Mannkind are pursuing the best and probably only approach that they can which is to win over endos one by one. "
This thread took the turn from its original OP about Direct-to-Consumer marketing with SilentKnight's comment about the Titanic, then you guys took this thread out to sea...to the land of share ownership. All aboard!
I really luv watching how these threads evolve.
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Post by lakon on Nov 3, 2016 8:29:54 GMT -5
Those are common shares, right ?? I'm not sure that would work. My understanding is that the various Mann entities own plain vanilla common shares and, as such, have no more rights than any shareholder that owns just 1 share.
However, the issue as we all know is the need for cash to keep operating, whether in or out of bankruptcy. If a company is BK, it can obtain what is known as "debtor in possession (DIP) financing" with the approval of the court, and that debt becomes a priority claim (i.e. one that takes precedence over all other claims except certain items specified by law). A DIP financier can agree to give up rights to repayment in exchange for all of the common stock in the reorganized company, allowing the cash to be used to pay off creditors and effectively wiping out the existing common. However, if somebody wanted to play hard ball and grab Afrezza there are better, faster, and cleaner ways to get rid of the other shareholders while keeping the key creditors happy. What is clear is that no matter what happens those parties who put in significant "new money" can control the case, to the detriment of those who don't contribute cash. If the Mann entities don't or can't pony up new cash, they will have the same fate as all other shareholders.
As the company gets to a more critical point in their financing, the leverage goes to those with money. As time passes it will be increasingly hard to persuade an entity to contribute serious cash to run the company in exchange for a percentage of the ownership, when they can just wait some weeks or months until bankruptcy becomes inevitable and own 100% of the company free of debt and other claims. That is why next week's earnings release will be important as that will give us a good look a the balance sheet, burn rate, and remaining credit facilities. Unfortunately, the vultures will be looking at the same figures and drawing their own conclusions. Some of the Mann affiliated entities are also debt holders and creditors. The Mann Group is effectively backstopping other debt covenants through their credit facility, and they were involved with the negotiations before. One might surmise that they are a significant player here. I think that they are a responsible party if things go badly. AFAIK, some of Al Mann's other private companies still make money, but it's hard to quantify because they are private. As far as shares go, they have as many rights as they can vote so power and influence more than 1 share. I know BK is a concern for you and many. It's rather binary: they either solve the cash problem OR they go BK. Time is short for an answer. Place your bets. Win or lose. I've simplified this bet to FOR or AGAINST Al Mann's long-term plan. If he planned well, it's a bad bet against MNKD success. If he planned poorly, it's a good bet against. Short-term (even years), it's been great to bet against him. Long-term (decades), time will tell. Unfortunately, he is gone so the plan is not subject to change (by him).
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Post by mnkdfann on Nov 3, 2016 12:13:44 GMT -5
I've simplified this bet to FOR or AGAINST Al Mann's long-term plan ... Long-term (decades), time will tell. Unfortunately, he is gone so the plan is not subject to change (by him). Are you talking about Al Mann or Hari Seldon?
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Post by agedhippie on Nov 3, 2016 12:48:05 GMT -5
I really luv watching how these threads evolve.
I thought that it was a fundamental law that no thread remained on topic past the first page.
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Post by mnholdem on Nov 3, 2016 13:28:54 GMT -5
Nah, I think the only fundamental law around here is that there must never be any more than 4 weeks before somebody has to pick on liane.
Oh damn, I think that I just reset the calendar!
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Post by liane on Nov 3, 2016 14:01:41 GMT -5
My Cubbies are finally World Series Champs!! Life is Good!
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Post by surplusvalue on Nov 3, 2016 14:23:04 GMT -5
I get why Castagna is targeting Endo's with Afrezza. Sanofi supposedly did the same. We have all seen evidence here that shows some Endo's slow to prescribe Afrezza. We're not in a situation where we can wait for them to wake up. Does it make sense at some point to abandon this marketing strategy and go right to the consumer? In other words, let's drive this the other direction. Market directly to diabetics and make resources available to Endo's to serve their patients. We don't have time to waste here. We need to move product! The plan was first endo education and then second DTC efforts (to reciprocally effect the increase in scripts). MNKD has spent almost all their resources and efforts on the first and very little (so far?) on the second. It's like they outfitted a car with a new engine, tires etc and didnt leave enough money for gas to even make the trip.
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