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Post by careful2invest on Apr 25, 2017 23:07:34 GMT -5
Honest question to all of you...
When was the 10 million per month burn first reported.
Maybe I am mistaken but it seems like we have been hearing that number for quite some time.
Was it before MNKD hired a six figure CPO, and 70 sales people as well as a few other employees?
The increased overhead of all of these newly hired personnel is a nut in itself.
Add to that, the production costs of making a commercial, sponsoring a television show, etc.
Still 10 million?
As I type, I realize that I could go back to all of the quarterly reports, but I figured some of you knowledgable people would know
off the top of your head.
Thanks to all in advance!
GLTA LONGS!
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Post by techorfund on Apr 25, 2017 23:13:00 GMT -5
I think it was roughly a year ago. I remember hearing it in the QA of a quarterly. Matt said they were at 13 to 14 per month, but would be at 10 in the next month or so.
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Post by matt on Apr 26, 2017 9:33:38 GMT -5
To be fair to Matt and friends, realize that the burn has always been high (although not $10 million) but that it did not impact Mannkind's cash flow because Sanofi picked up 65% of the marketing cost and loaned Mannkind the money to cover their 35%. Much of the expense was always there, but the cash flow impact of marketing was neutral until Sanofi pulled the plug.
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Post by cjm18 on Apr 26, 2017 9:39:35 GMT -5
But doesn't the burn rate seem high now? 200 employees at 100k per year is only 17% of the burn rate.
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Post by radgray68 on Apr 26, 2017 10:44:04 GMT -5
To my recollection, Matt has been using the $10 million a month figure since the trials were going on in 2013.
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Post by promann on Apr 26, 2017 10:57:22 GMT -5
The extra expenditures is probably a wash with the extra savings. MNKD is saving a lot not operating out of the velencia space that was sold and also they are saving from not trying to get drugs approved R and D.
But yes I also want to know what the current burn rate is.. I suspect about the same or lower then 10 mil monthly
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Post by compound26 on Apr 26, 2017 11:14:46 GMT -5
The extra expenditures is probably a wash with the extra savings. MNKD is saving a lot not operating out of the velencia space that was sold and also they are saving from not trying to get drugs approved R and D. But yes I also want to know what the current burn rate is.. I suspect about the same or lower then 10 mil monthly I think the actual burn rate of the fourth quarter of 2016 is bit over $8 million a month. Think that will be the going rate as we move forward. |
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Post by derek2 on Apr 26, 2017 11:38:45 GMT -5
R&D costs $14M / year, so there's another 12%
COGS on $5M sales last year was $17M (another 14%)
SG&A was $46M (40%) - includes non-manufacturing salaries.
That right there gets you up to 2/3rds
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Post by careful2invest on Apr 26, 2017 14:53:06 GMT -5
To my recollection, Matt has been using the $10 million a month figure since the trials were going on in 2013. And that leads to my point that the 10 mil cannot be an accurate number. If it was since 2013, so many things have transpired since then. It just does not make sense! Thanks to all of you for your responses! GLTA LONGS! |
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