|
Post by sportsrancho on Mar 16, 2017 21:17:42 GMT -5
I'm struggling a little to get my head around what went wrong with the contract sales force. On the one hand we are exiting them because we need the focus and commitment of our own team , yet it looks like 60% or so were hired into MNKD as full time employees: so must be most of the new sales force. So same people. What's changed that they can sell now that they couldn't before? Matt mentioned the percentage of the contractorrs kept. I thought he said a number much lower than 60% on today's call. Even if we kept half of them that would only be 25 reps. We have between 80 and 100 now. I think for many reasons we are much better off now.
|
|
|
Post by peppy on Mar 16, 2017 21:17:45 GMT -5
|
|
|
Post by brentie on Mar 16, 2017 22:20:12 GMT -5
|
|
|
Post by akemp3000 on Mar 16, 2017 22:44:21 GMT -5
It's ok if they kept or converted 60% of the 55 contract sales force or 33 reps. They have since hired about 70 additional full-time direct reps. The recent jump in samples validates the start of this transition. Now we obviously have to see scripts move up as well. Matt and Mike said they would.
|
|
|
Post by dreamboatcruise on Mar 17, 2017 0:33:19 GMT -5
The terms on the Mann Group note were changed some time ago to keep Deerfield happy. Essentially, Mann Group has guaranteed that the entire balance of the $30 million will be available and Deerfield agreed to count that credit line towards the $25 million minimum. So MNKD, in theory, can run the cash down to zero and keep the Deerfield covenant so long as the $30 million credit facility remains untouched. Mann Group is on the hook for the full $30 million no matter what; it is almost equity. Ultimately, cash remains the issue and if you look at Q4 the cost of sales still exceeds revenue which means sales are still made at a loss, but a big improvement over Q3. Back all the one-time numbers out of Q3 and Q4 (and the facility sale out of Q1) and things will become clear. There is a positive trend there, the question is whether it is positive enough. My take away from today was Matt P. left more unsaid than said. I think Matt just might have a trick or two up his sleeve. I would take Matt at his word today and not worry about cash for awhile. The bottom line is he is not going for a secondary right now no matter how much you and your friends may want him to. If he can't get it out of his sleeve it ain't a very good magic trick. The bird up there is probably near death from asphyxiation. He's about to get gonged off stage.
|
|
|
Post by dreamboatcruise on Mar 17, 2017 1:02:21 GMT -5
Don't be surprised if MannKind announces a restructured debt agreement with Deerfield in the coming months. And that's about like restructuring one's debt to a loan shark or a bookie... usually involves some pain. I'm flinching as we speak waiting to have my retirement knee caps whacked with a baseball bat.
|
|
|
Post by kc on Mar 17, 2017 5:09:47 GMT -5
Due to business issues I did not hear the conference call until about 8 PM last night. But I was very impressed with the length of the call, the information provided all the call and the way that both Matt and Mike presented the information.
They were very open and direct with the information. While we all know the company will struggle because of cash flow. We also know that we have a very strong professional group pulling it forward.
|
|
|
Post by sayhey24 on Mar 17, 2017 5:27:29 GMT -5
Don't be surprised if MannKind announces a restructured debt agreement with Deerfield in the coming months. And that's about like restructuring one's debt to a loan shark or a bookie... usually involves some pain. I'm flinching as we speak waiting to have my retirement knee caps whacked with a baseball bat. The restructuring was one thing I heard a.k.a "if we can find non-dilutive" I think is what he said. The good news is they have cash to pay the electric bills for awhile. But its always good to have more available cash. Maybe only one of your knee caps will get whacked.
|
|
|
Post by madog365 on Mar 17, 2017 7:01:11 GMT -5
"All right. Thanks very much, Mike. So recapping somewhat, as Rose told us, we finished the year in a very strong cash position with a very strong record, in fact, earnings, greatly reduced debt than previous, and a very strong cash position as well. If you take the year-end cash and add back some things that we hadn’t yet received, but we’re in receivables and we’ll receive shortly after the end of the year.
You’re talking over $70 million in actual cash. Take that, add that $30 million that’s still available for The Mann Group should it be needed. Clearly, we’re in a pretty strong cash position."
I guess matt didn't make himself clear enough to some people on this board by repeating himself three times in a row within a span of 1 minute.
|
|
|
Post by silentknight on Mar 17, 2017 7:13:00 GMT -5
"All right. Thanks very much, Mike. So recapping somewhat, as Rose told us, we finished the year in a very strong cash position with a very strong record, in fact, earnings, greatly reduced debt than previous, and a very strong cash position as well. If you take the year-end cash and add back some things that we hadn’t yet received, but we’re in receivables and we’ll receive shortly after the end of the year. You’re talking over $70 million in actual cash. Take that, add that $30 million that’s still available for The Mann Group should it be needed. Clearly, we’re in a pretty strong cash position." I guess matt didn't make himself clear enough to some people on this board by repeating himself three times in a row within a span of 1 minute. MNKD has approximately 10 months of cash on hand, assuming they tap the Mann Group loan and assuming they maintain a $10 million per month burn. While it's certainly better than flirting with bankruptcy like they did in October/November of last year before the Sanofi settlement came through, it's also not a strong selling point to investors. The money gets them to the end of the year, and they'll be forced to finance again. For MNKD, I realize that's an eternity. For any other reputable NASDAQ traded company, having less than a year's worth of operating cash is a hard sell. All in all, the call was a push. Nothing negative, nothing positive. We're waiting to see how sales go. Frankly, I'm tired of having to "wait and see". I want results now and they've had plenty of time to achieve them.
|
|
|
Post by lennymnkd on Mar 17, 2017 7:49:26 GMT -5
When Matt said he will be speaking to us "very" soon , did he mean the annual meeting (may) or that something up his sleeve / hmmmm
|
|
|
Post by bradleysbest on Mar 17, 2017 8:10:00 GMT -5
Only problem is Matt was wearing a wife beater ......
|
|
|
Post by kbrion77 on Mar 17, 2017 8:15:00 GMT -5
When Matt said he will be speaking to us "very" soon , did he mean the annual meeting (may) or that something up his sleeve / hmmmm Probably the Amgen buyout for $25/share.
|
|
|
Post by lennymnkd on Mar 17, 2017 8:22:20 GMT -5
Which is really 5.00 / I'm not taking it !
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Mar 17, 2017 8:59:28 GMT -5
Which is really 5.00 / I'm not taking it ! at this point everyone would. to get it over with if there was one.
|
|