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Post by sla55 on Nov 9, 2016 19:46:48 GMT -5
finance.yahoo.com/news/mannkind-sanofi-reach-agreement-afrezza-003802562.htmlVALENCIA, Calif., Nov. 09, 2016 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) (TASE:MNKD) today announced that MannKind and Sanofi have entered into an agreement with the following terms: The promissory note and security agreement between MannKind and Aventisub LLC, a Sanofi affiliate, are terminated, with Aventisub agreeing to forgive the full outstanding loan balance of $71.56 million. MannKind is also relieved from its obligation to pay $0.5 million in previously uncharged costs related to the collaboration. Sanofi will purchase $10.2 million worth of insulin from MannKind in early December as part of its preexisting commitment to purchase insulin following termination of the collaboration and MannKind's exercise of a "put" option. The balance of the insulin "put" option ($30.6 million) is accelerated with Sanofi completing the cash payment of $30.6 million to MannKind by January 9, 2017. This payment will be made without MannKind being required to deliver any insulin to Sanofi. All issues arising out of the license and collaboration agreement, the supply agreement, the promissory note, the security agreement and the transition agreement are resolved.
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Post by dreamboatcruise on Nov 9, 2016 19:51:48 GMT -5
So Sanofi will have ended up wasting over $300M on this. Bad for SNY shareholders, bad for MNKD and bad for patients with diabetes. SNY is a mess.
At least Matt knows how to clean up a mess. Congrats!
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Post by patten1962 on Nov 18, 2016 6:35:04 GMT -5
My take on the Sanofi exit deal. Fist off I will start with a question. Why would Sanofi give 40 million dollars, forgive 71 million dollars of debt and release the hold on the Valencia Factory to a company that many believe does not have enough money to last 3 months?
I have been tossing this around in my head for some time. Only thing I can come up with is Matt has something in the works we do not know about yet that is a game changer for the future of Mannkind!
Some people have said 130 million is nothing to a big company. Not sure I believe that or Sanofi thinks the same.
Thinking something big is brewing. I have no proof. Just logically thinking, if I was Sanofi I "might" think Mannkind will go BK in 3 months unless I had information that tells me differently.
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Post by Deleted on Nov 18, 2016 6:49:56 GMT -5
My take on the Sanofi exit deal. Fist off I will start with a question. Why would Sanofi give 40 million dollars, forgive 71 million dollars of debt and release the hold on the Valencia Factory to a company that many believe does not have enough money to last 3 months? I have been tossing this around in my head for some time. Only thing I can come up with is Matt has something in the works we do not know about yet that is a game changer for the future of Mannkind! Some people have said 130 million is nothing to a big company. Not sure I believe that or Sanofi thinks the same. Thinking something big is brewing. I have no proof. Just logically thinking, if I was Sanofi I "might" think Mannkind will go BK in 3 months unless I had information that tells me differently. Cos Sanofi didn't want to go into trouble and severe ties with Mannkind. 70 mil was already spent . They were not gonna see it any way till 2024 40 mil is they have to pay for insulin due to the put. As s good will they are prepaying it and not taking insulin. Sanofi is not into the business of grabbing buildings. As a good will gesture they released the lien as all of this is peanuts for them. On your other question in the last few sentences.. Sanofi doesn't care what happens to Mannkind. they exited the deal and washed their hands off. There is no magic secret labs at Mannkind than they disclosed. May be apple is working with Matt , with something? You know Apple is very secretive |
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Post by dictatorsaurus on Nov 18, 2016 7:16:38 GMT -5
It was a divorce settlement. Nothing more nothing less.
Sanofi is in the past and needs to remain in the past. No more conspiracy theories.
Time for Mannkind to take off and take control over their own destiny. If they succeed, they will get all the credit. If they fail, they will get all the blame.
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Post by akemp3000 on Nov 18, 2016 7:27:37 GMT -5
My take on the Sanofi exit deal. Fist off I will start with a question. Why would Sanofi give 40 million dollars, forgive 71 million dollars of debt and release the hold on the Valencia Factory to a company that many believe does not have enough money to last 3 months? I have been tossing this around in my head for some time. Only thing I can come up with is Matt has something in the works we do not know about yet that is a game changer for the future of Mannkind! Some people have said 130 million is nothing to a big company. Not sure I believe that or Sanofi thinks the same. Thinking something big is brewing. I have no proof. Just logically thinking, if I was Sanofi I "might" think Mannkind will go BK in 3 months unless I had information that tells me differently. Good take. For the past couple of months, many focused on the forthcoming doom of MNKD while Matt and Mike kept busy showing no signs of concern. We soon found out why. Now, the same ones that forecasted doom are floating the idea that 130M was nothing or that SNY relieved debt for goodwill. There's no boardroom anywhere that gives up millions without underlying justification. IMHO, your take is spot on. Matt and Mike know something we don't and most likely, it's a lot of things. I'm hopeful these things go beyond Afrezza and the forthcoming TV ads and include some significant pipeline or global announcements. The years of patience have been painful but the upside for the amazing science of TS just might make it all worthwhile. |
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Post by mnholdem on Nov 18, 2016 7:28:43 GMT -5
IMO, Sanofi's actions were based on their desire to prevent damage to their reputation among other small biotech development companies. Their image as a great pharmaceutical partner has already gotten a black eye due to the Genzyme shareholder lawsuit which accuses Sanofi of intentionally delaying the drug Lemtrada to avoid $708 million in payments to rights holders under its 2011 agreement to acquire Genzyme Corp.
The shakeup of Sanofi's C-Suite, perceived disarray within the organization and disappointing sales in the U.S. have harmed Sanofi's image of a "go to" partner for drug development companies. A nasty divorce with MannKind over what many believe should be a blockbuster insulin was not in Sanofi's best interests.
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Post by peter on Nov 18, 2016 8:04:31 GMT -5
come-on, in this world is nothing for free,Greed is King and sure there is something going on behind the scenes that is worth all of this for Sanofi !!
for example,
...
Matthew Pfeffer, Chief Executive Officer of MannKind added, “The expansion of Mike’s organization with these two key roles supports MannKind’s business objectives for 2016 and beyond. Under Joe and Tino’s leadership, MannKind can develop strong relationships with payors that benefit patients, and produce innovative and focused marketing and sales programs that establish MannKind’s market presence with Technosphere -based products.”
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Post by patten1962 on Nov 18, 2016 8:16:49 GMT -5
Thank you
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Post by patten1962 on Nov 18, 2016 8:20:33 GMT -5
My take on the Sanofi exit deal. Fist off I will start with a question. Why would Sanofi give 40 million dollars, forgive 71 million dollars of debt and release the hold on the Valencia Factory to a company that many believe does not have enough money to last 3 months? I have been tossing this around in my head for some time. Only thing I can come up with is Matt has something in the works we do not know about yet that is a game changer for the future of Mannkind! Some people have said 130 million is nothing to a big company. Not sure I believe that or Sanofi thinks the same. Thinking something big is brewing. I have no proof. Just logically thinking, if I was Sanofi I "might" think Mannkind will go BK in 3 months unless I had information that tells me differently. Cos Sanofi didn't want to go into trouble and severe ties with Mannkind. 70 mil was already spent . They were not gonna see it any way till 2024 40 mil is they have to pay for insulin due to the put. As s good will they are prepaying it and not taking insulin. Sanofi is not into the business of grabbing buildings. As a good will gesture they released the lien as all of this is peanuts for them. On your other question in the last few sentences.. Sanofi doesn't care what happens to Mannkind. they exited the deal and washed their hands off. There is no magic secret labs at Mannkind than they disclosed. May be apple is working with Matt , with something? You know Apple is very secretive Thank you for your thoughts. I hope to meet you at the the share holders meeting this year. I am inviting you for lunch/drink. I would be very interested in hearing all your thoughts about Apple and MannKind. Let me know! |
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Post by audiomr on Nov 18, 2016 12:25:47 GMT -5
My take on the Sanofi exit deal. Fist off I will start with a question. Why would Sanofi give 40 million dollars, forgive 71 million dollars of debt and release the hold on the Valencia Factory to a company that many believe does not have enough money to last 3 months? I have been tossing this around in my head for some time. Only thing I can come up with is Matt has something in the works we do not know about yet that is a game changer for the future of Mannkind! Some people have said 130 million is nothing to a big company. Not sure I believe that or Sanofi thinks the same. Thinking something big is brewing. I have no proof. Just logically thinking, if I was Sanofi I "might" think Mannkind will go BK in 3 months unless I had information that tells me differently. Good take. For the past couple of months, many focused on the forthcoming doom of MNKD while Matt and Mike kept busy showing no signs of concern. We soon found out why. Now, the same ones that forecasted doom are floating the idea that 130M was nothing or that SNY relieved debt for goodwill. There's no boardroom anywhere that gives up millions without underlying justification. IMHO, your take is spot on. Matt and Mike know something we don't and most likely, it's a lot of things. I'm hopeful these things go beyond Afrezza and the forthcoming TV ads and include some significant pipeline or global announcements. The years of patience have been painful but the upside for the amazing science of TS just might make it all worthwhile. Gets them off the hook for relatively little, by their standards. Maybe Mannkind threatened to take them to arbitration and Sanofi decided it wasn't worth the risk and publicity. They didn't buy their way into anything, and I doubt Mannkind would consider partnering with them again, at least with the current Sanofi leadership. Once bitten, twice shy. |
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Post by sportsrancho on Nov 18, 2016 13:35:17 GMT -5
It was only a few weeks ago that people on this board were saying that SNY wouldn't give us anything! That they or some other BP would just wait and pick us up in a fire sale after BK. What say you now....I say they knew they better settle up now or pay more later.
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Post by dreamboatcruise on Nov 18, 2016 13:55:03 GMT -5
It was only a few weeks ago that people on this board were saying that SNY wouldn't give us anything! That they or some other BP would just wait and pick us up in a fire sale after BK. What say you now....I say they knew they better settle up now or pay more later. I don't think I've ever said SNY would give us nothing, but had expressed doubts it would be significant. I think this was a creative deal that didn't cost SNY a lot that they weren't already exposed to, but is certainly better than I was imagining and openly speculated... so what say I now... I was wrong, and Matt knows how to put a deal together. I don't think we're out of the woods yet but my confidence has gone up dramatically. I think many things are probably in the works that we don't know about, but of course many things fail to come to fruition. Macro issues can even intervene to scuttle deals that might have been close... recessions, retrenchment of spending due regulatory uncertainty, etc. etc. These things are true for all businesses, but of course pre-revenue businesses like MNKD are much more vulnerable. I have confidence in the management team. No guarantees, but they've proven they are adept at navigating difficult situations. |
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Post by matt on Nov 18, 2016 13:56:15 GMT -5
It was only a few weeks ago that people on this board were saying that SNY wouldn't give us anything! That they or some other BP would just wait and pick us up in a fire sale after BK. What say you now....I say they knew they better settle up now or pay more later. I still don't think SNY had any legal obligation or risk of having to pay MNKD for the Afrezza launch, but as they prepare to do a major corporate restructuring of their own they figured it was better to be done with it. The $30 million on the insulin put was a pre-existing obligation that would have survived bankruptcy so they would have paid it one way or another. Given the near zero interest rates, paying now instead of over a few years is pretty much a wash. They use a different API to manufacture their insulin so they would have wound up discarding the insulin anyway, so not taking the insulin from MNKD saved them some money.
The part that they did leave on the table was the value of the building. In a worse case bankruptcy situation they would have been able to see the building for whatever amount they could get for it, and the difference would have been an unsecured claim like any other creditor. After marketing, real estate brokerage, property taxes, insurance and other costs while they sold the building, it is not clear how much they would have realized, as the building has been sitting unsold with a price tag of $25 million. They may have simply decided that it wasn't worth the trouble.
As for what anybody would pay for MNKD in a bankruptcy, that remains to be determined. The value of the patents will rise and fall with market demand for the products they protect, so unless sales increase enough to at least cover manufacturing costs, the offers will be insultingly small. Danbury is security for Deerfield so that value is outside of the bankruptcy estate.
The story continues to be traction in the market. If the product catches fire, so will the share price and financing options.
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Post by sportsrancho on Nov 18, 2016 14:21:06 GMT -5
Better to be done with it.....Not worth the trouble ...
It's seems to me they had hope ( hope not being a strategy) that we would go belly up. Then they had knowledge. They know as well as we do the science behind Afrezza. They may have information that leads them to believe that we will have along enough run way to gain traction in the market. Or not. But based on hope or science they went with the latter.
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