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Post by myocat on Apr 10, 2017 8:56:41 GMT -5
My current company offered all contract workforce direct positions - sold 2 months later. My friend company went to hiring frenzy late last year - sold Jan 2017. My previous company did internal reorg created few programs assigned key employees to those programs - sold few month later. My latest invested bio company, did R/S - clean up balance sheet, resolved any outstanding litigation - sold few months later...
I think MNKD is in the process to be consummated by someone.... just speculating....
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Post by fanz8967 on Apr 10, 2017 9:14:59 GMT -5
My current company offered all contract workforce direct positions - sold 2 months later. My friend company went to hiring frenzy late last year - sold Jan 2017. My previous company did internal reorg created few programs assigned key employees to those programs - sold few month later. My latest invested bio company, did R/S - clean up balance sheet, resolved any outstanding litigation - sold few months later...
I think MNKD is in the process to be consummated by someone.... just speculating....
Come on ladies!! This could be your best chance to buy this stock. If you believe in the company, you double down. You're not selling? They why wouldn't you buy more? haha
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Post by silentknight on Apr 10, 2017 9:37:29 GMT -5
I believe MNKD undertook most of last year's actions out of necessity to survive, not because of an impending sale or other similar event.
Contract to direct hire was likely for the reasons Mike mentioned. Experienced sales reps wanted to be company employees for better benefits, stock options, etc. It's hard to attract the best qualified individuals when they're limited to their upside by being contractors.
Hiring was related to the above point, as most new hires have been related to sales personnel. The addition of the "Chief People Person", while probably simply a HR exec, has been the only significant executive hire in recent days. Hiring has been done because MNKD has to, not because they're preparing for a change of control. I'd think that if another company were preparing to take over, they're would be a hiring freeze, as the company to take ownership would want to move forward with their own personnel plan.
As far as the R/S and cleaned up balance sheet, the company HAD to do the R/S in order to maintain the Nasdaq listing. It wasn't to reduce the float or share count or for any other reason. It was done out of necessity because they had no other option.
The balance sheet was cleaned up via the SNY settlement in one of Matt's few notable accomplishments as the company was quite literally running out of money. Matt needed to do that in order to keep the lights on. It front loaded any outstanding payments SNY would be making to MNKD in order to recoup some operating funds. It was done out of necessity.
Even if a sale were to occur at these levels, it would likely be at a price point that left most shareholders at a loss. I can't envision any company paying more than $2 or $2.50 per share given where we are now. I can only speak for myself, but that would still leave me with a six figure loss, so I'd be opposed to a sale at that level.
What needs to happen is for MNKD to sell their product. If a sale occurs before that happens, the buyer will likely be taking MNKD to the cleaners due to the company's weakness. Besides, who would buy MNKD now when you could wait 6 months and potentially buy it for pennies on the dollar in liquidation if things continue to go they way they have been for the last two years?
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Post by slugworth008 on Apr 10, 2017 9:49:20 GMT -5
I believe MNKD undertook most of last year's actions out of necessity to survive, not because of an impending sale or other similar event. Contract to direct hire was likely for the reasons Mike mentioned. Experienced sales reps wanted to be company employees for better benefits, stock options, etc. It's hard to attract the best qualified individuals when they're limited to their upside by being contractors. Hiring was related to the above point, as most new hires have been related to sales personnel. The addition of the "Chief People Person", while probably simply a HR exec, has been the only significant executive hire in recent days. Hiring has been done because MNKD has to, not because they're preparing for a change of control. I'd think that if another company were preparing to take over, they're would be a hiring freeze, as the company to take ownership would want to move forward with their own personnel plan. As far as the R/S and cleaned up balance sheet, the company HAD to do the R/S in order to maintain the Nasdaq listing. It wasn't to reduce the float or share count or for any other reason. It was done out of necessity because they had no other option. The balance sheet was cleaned up via the SNY settlement in one of Matt's few notable accomplishments as the company was quite literally running out of money. Matt needed to do that in order to keep the lights on. It front loaded any outstanding payments SNY would be making to MNKD in order to recoup some operating funds. It was done out of necessity. Even if a sale were to occur at these levels, it would likely be at a price point that left most shareholders at a loss. I can't envision any company paying more than $2 or $2.50 per share given where we are now. I can only speak for myself, but that would still leave me with a six figure loss, so I'd be opposed to a sale at that level. What needs to happen is for MNKD to sell their product. If a sale occurs before that happens, the buyer will likely be taking MNKD to the cleaners due to the company's weakness. Besides, who would buy MNKD now when you could wait 6 months and potentially buy it for pennies on the dollar in liquidation if things continue to go they way they have been for the last two years? Valid points with one exception - Greed....some company may/will not want to risk waiting for the Co to be liquidated and be sold to a competitor who may actually successfully commercialize afrezza whip their assets in the marketplace and will therefor overpay (according to your envisioning). Think Yankees-Red Sox. JMHO
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Post by silentknight on Apr 10, 2017 9:54:49 GMT -5
I believe MNKD undertook most of last year's actions out of necessity to survive, not because of an impending sale or other similar event. Contract to direct hire was likely for the reasons Mike mentioned. Experienced sales reps wanted to be company employees for better benefits, stock options, etc. It's hard to attract the best qualified individuals when they're limited to their upside by being contractors. Hiring was related to the above point, as most new hires have been related to sales personnel. The addition of the "Chief People Person", while probably simply a HR exec, has been the only significant executive hire in recent days. Hiring has been done because MNKD has to, not because they're preparing for a change of control. I'd think that if another company were preparing to take over, they're would be a hiring freeze, as the company to take ownership would want to move forward with their own personnel plan. As far as the R/S and cleaned up balance sheet, the company HAD to do the R/S in order to maintain the Nasdaq listing. It wasn't to reduce the float or share count or for any other reason. It was done out of necessity because they had no other option. The balance sheet was cleaned up via the SNY settlement in one of Matt's few notable accomplishments as the company was quite literally running out of money. Matt needed to do that in order to keep the lights on. It front loaded any outstanding payments SNY would be making to MNKD in order to recoup some operating funds. It was done out of necessity. Even if a sale were to occur at these levels, it would likely be at a price point that left most shareholders at a loss. I can't envision any company paying more than $2 or $2.50 per share given where we are now. I can only speak for myself, but that would still leave me with a six figure loss, so I'd be opposed to a sale at that level. What needs to happen is for MNKD to sell their product. If a sale occurs before that happens, the buyer will likely be taking MNKD to the cleaners due to the company's weakness. Besides, who would buy MNKD now when you could wait 6 months and potentially buy it for pennies on the dollar in liquidation if things continue to go they way they have been for the last two years? Valid points with one exception - Greed....some company may/will not want to risk waiting for the Co to be liquidated and be sold to a competitor who may actually successfully commercialize afrezza whip their assets in the marketplace and will therefor overpay (according to your envisioning). Think Yankees-Red Sox. JMHO Greed can be a motivator, for sure, but if a company was worried about Afrezza being successfully commercialized against them, we would have seen another partner step up by now after Sanofi walked away. We haven't. That tells me that if another pharma is interested, they're content to wait it out. So far Sanofi failed to sell the drug and so far MNKD has failed to sell the drug. I don't think too many companies are going to be worried that Afrezza will harm their profits at a whopping 250 scripts per week.
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Post by myocat on Apr 10, 2017 10:01:02 GMT -5
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Post by orlon on Apr 10, 2017 10:02:49 GMT -5
Appears to me that the Change of Control agreements...golden parachutes for all, is actually a precursor for either a sale or merger. The argument can be made that this is a common practice with most corporations, but my question would be why now after all these years? I have a feeling that something is afoot but have no idea if it's good or bad...but how can it get much worse. $2.50, although creating a significant loss to many of us is still better than the recent PPS.
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Post by slugworth008 on Apr 10, 2017 10:14:34 GMT -5
Valid points with one exception - Greed....some company may/will not want to risk waiting for the Co to be liquidated and be sold to a competitor who may actually successfully commercialize afrezza whip their assets in the marketplace and will therefor overpay (according to your envisioning). Think Yankees-Red Sox. JMHO Greed can be a motivator, for sure, but if a company was worried about Afrezza being successfully commercialized against them, we would have seen another partner step up by now after Sanofi walked away. We haven't. That tells me that if another pharma is interested, they're content to wait it out. So far Sanofi failed to sell the drug and so far MNKD has failed to sell the drug. I don't think too many companies are going to be worried that Afrezza will harm their profits at a whopping 250 scripts per week. Perhaps - But SNY was never committed to selling Afrezza and MNKD has done quite a bit of heavy lifting and their is much more data available to support just how good Afrezza really is. Script counts are indeed pathetic, and another BP may just think their management team and resources would whip up on MNKD's? however any consistent uptick in scripts - And I think that changes the entire dynamic. JMHO Disclosure I'm down damn near six figures on this as well - on paper.
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Post by seanismorris on Apr 10, 2017 10:20:28 GMT -5
If they sold the company that would be the same as if they went BK for most of us...
Actually, I'd rather management suffer through a BK rather than sell. I'm obviously not happy with management.
I'm more of an eye for an eye, kind of guy. But, I have no way to garnish their wages for the next decade. Times that by 10s of thousands of individual investors...that's not going to happen.
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Post by silentknight on Apr 10, 2017 10:24:36 GMT -5
Greed can be a motivator, for sure, but if a company was worried about Afrezza being successfully commercialized against them, we would have seen another partner step up by now after Sanofi walked away. We haven't. That tells me that if another pharma is interested, they're content to wait it out. So far Sanofi failed to sell the drug and so far MNKD has failed to sell the drug. I don't think too many companies are going to be worried that Afrezza will harm their profits at a whopping 250 scripts per week. Perhaps - But SNY was never committed to selling Afrezza and MNKD has done quite a bit of heavy lifting and their is much more data available to support just how good Afrezza really is. Script counts are indeed pathetic, and another BP may just think their management team and resources would whip up on MNKD's? however any consistent uptick in scripts - And I think that changes the entire dynamic. JMHO Disclosure I'm down damn near six figures on this as well - on paper. I share your belief that sales will significantly improve MNKD's chances of survival and improve the chances/terms of a potential buyout. The problem with that is MNKD has so far failed to be able to achieve those results. Until Afrezza has been demonstrated, by someone, that it is commercially viable, I don't think any buyout occurs as there is simply too much risk associated with the deal. MNKD believed they too could sell Afrezza better than Sanofi and they've devoted well over $100 million dollars to it by this point. We have nothing to show for it so far, so I believe any potential buyers would rather not take the chance until their chances of success are much improved. That's the way buy outs work. Another company does the hard work and gets bought for it. If MNKD succeeds, we could see it, but it llikely won't happen until that success happens. A CEO would have a pretty hard sell to a competent BoD to spend company money on MNKD in its current state unless their intent to bury the drug from the beginning. But if that were the case, why not let SNY and MNKD bury it for you, which they're doing currently by failing to commercialize it?
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Post by kbrion77 on Apr 10, 2017 10:41:56 GMT -5
I don't know how many times this needs to be debunked on increased holdings. It's like groundhogs day every quarter the narrative becomes "X increased their holdings by a significant amount it must mean buyout!" The increase means absolutely nothing they are trading based on algos.
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Post by mnkdfann on Apr 10, 2017 10:58:57 GMT -5
FWIW, Shaw never said he saw M&A potential. That part was a personal opinion expressed by the English Lit major who wrote the article.
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Post by derek2 on Apr 10, 2017 11:05:11 GMT -5
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Post by matt on Apr 10, 2017 11:06:08 GMT -5
In a BK situation golden parachutes are more like lead parachutes; they are very difficult to collect because they have no special priority and are therefore an unsecured claim (except for the small statutory amount for unpaid wages of every employee). However, such contracts have a psychological value and board might be trying to limit any early departures in anticipation of a material event.
Personally, I don't think MNKD is ripe for a takeout by some other pharma. The diabetes market is essentially down to Lilly, Novo, and Sanofi, and the competition is pretty brutal. Any company with a single product doesn't have a snowball's chance in hell of surviving in the sector, so that really only leaves Lilly and Novo as possible suitors (Sanofi had their chance). If Afrezza was really critical to either company, they would step up and buy it at whatever the price simply to protect their franchise. Big pharma doesn't behave like stock traders; they have a value-based price in mind and they are willing to pay 100% of that price no matter what. Similarly, they don't buy drugs they don't value so few big pharmas scoop up assets in bankruptcy liquidations; that is left to opportunists like Concordia. If there has not been a serious offer made for the company at this point, there probably won't be.
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Post by sportsrancho on Apr 10, 2017 11:29:38 GMT -5
Appears to me that the Change of Control agreements...golden parachutes for all, is actually a precursor for either a sale or merger. The argument can be made that this is a common practice with most corporations, but my question would be why now after all these years? I have a feeling that something is afoot but have no idea if it's good or bad...but how can it get much worse. $2.50, although creating a significant loss to many of us is still better than the recent PPS. Right, why now? Because they tend to wait till the last min to do everything:-)
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