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Post by tingtongtung on Aug 8, 2017 12:52:00 GMT -5
So Pfeffer is still employed by the company? For how long? For what purpose? I am glad we know now what Matt's position is. Matt has given his heart and soul to Mannkind.
From the 10q
On May 25, 2017, the board of directors (the “Board”) replaced Matthew J. Pfeffer as Chief Executive Officer and Chief Financial Officer of the Company. Pursuant to a severance agreement in effect on that date, Mr. Pfeffer’s estimated current value of payments and benefits upon termination totaled approximately $1.2 million. At the time of the Board action, Mr. Pfeffer was expected to remain employed by the Company in an advisory capacity until July 31, 2017, before transitioning to severance. Subsequently, the Company and Mr. Pfeffer began negotiating a new agreement that would, if and when finalized, supersede the existing severance agreement. Given that the new agreement would override any prior severance agreements and amounts previously due to Mr. Pfeffer and contains special termination benefits that are contingent upon certain factors that cannot be reasonably estimated, the Company recorded no severance accrual for Mr. Pfeffer during the second quarter of 2017. Current salary and benefits continue to be accrued as earned.
Absolutely.. Matt P is one of those guys who gets the job done without saying much. But, sometimes somehow they end up saying something that sounds weird(embarrassment of riches). I'm sure he used logic to say it. If you own a product like Afrezza, wouldn't you say that? Afrezza works more than fine, but lacks the infrastructure to be sold. That needs a lot of cash, and contacts. Mike will bring in the contacts, and somehow they have to get cash. If they do get around 90-100 million, they can easily own a decent chunk of market.. I sincerely hope MNKD succeeds, and Matt P makes decent money/recognition out of this.
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Post by derek2 on Aug 8, 2017 13:11:15 GMT -5
I just bought $1000 at $1.15 (shush! I won't be telling my wife about it, though) It jumped right afterward to $1.20, and then came back down. It brought my average cost in that account down from $6 to $5.60, so that was good. I think that even if there is dilution, losses from it will just be washed out going forward by the SP increases as the good news, sales and optimism grow. I am hoping that it is not ever going to go below a dollar. Bought some Jan 2019 $1.50 calls today. Still watching my Aug 11 $1.00 calls. Might get out of those by Friday with my shirt intact. The LEAPs will allow me to just relax and watch. I have upside exposure for the long term and my risk is well defined. I guess I liked what I heard last night, for the most part. Financing is the biggest outstanding concern.
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Post by dreamboatcruise on Aug 8, 2017 14:25:48 GMT -5
All in all I thought it was a very good call. It was chock full of details. It wouldve been nice to have a final answer yesterday on capitalization needs, but it really sounds like they are trying to strike the right balance. Maxing the Mann loan give the company more time to show sales can be grown. Perhaps this leads to a better deal on international expansion.
Bankruptcy is off the table.
Highlights from my point of view:
Afrezza on 70% of commercial plans 110,000 online views of this TV commercial Will be running the commercial in 9000 HCP offices through outcome health program beginning this month New writers increased 41% in the second quarter of 2017 (Here comes compounding)
Potential sources of extending the runway Debt, equity, preferred equity, sale/leaseback of CT plant, development deals & international licensing opportunities.
Analyst call from Cantor Fitzgerald. No one of substance has been on an earnings call for several qtrs www.prnewswire.com/news-releases/cantor-fitzgerald-expands-healthcare-and-biotech-equity-research-platforms-with-addition-of-bill-tanner-phd-and-steven-halper-300379092.html
Lastly, Matt P is still involved. He has the background to close financings. It makes sense to keep him in place until capital in whatever form is secured. From the 10q
On May 25, 2017, the board of directors (the “Board”) replaced Matthew J. Pfeffer as Chief Executive Officer and Chief Financial Officer of the Company. Pursuant to a severance agreement in effect on that date, Mr. Pfeffer’s estimated current value of payments and benefits upon termination totaled approximately $1.2 million. At the time of the Board action, Mr. Pfeffer was expected to remain employed by the Company in an advisory capacity until July 31, 2017, before transitioning to severance. Subsequently, the Company and Mr. Pfeffer began negotiating a new agreement that would, if and when finalized, supersede the existing severance agreement. Given that the new agreement would override any prior severance agreements and amounts previously due to Mr. Pfeffer and contains special termination benefits that are contingent upon certain factors that cannot be reasonably estimated, the Company recorded no severance accrual for Mr. Pfeffer during the second quarter of 2017. Current salary and benefits continue to be accrued as earned.
When did they talk about bankruptcy at all... as being on or off anything. Time in the call, please, so I can relisten? There is still on ongoing concern warning in the SEC filings isn't there? Bankruptcy is never something companies discuss as being an option that is on the table of consideration. In fact by law they cannot consider it until it is the only viable option to protect creditors. So bankruptcies aren't something put on and taken off a table... it is something that happens when a company's other plans don't come to fruition. We're still in precarious situation, if for no other reason an economy wide credit crisis could cut off necessary funding to MNKD even if they were doing everything they hope to do.
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Post by oldfishtowner on Aug 8, 2017 14:39:00 GMT -5
It's a bigger jump that that, Afrezza sales in H1 2017 was $2.7 million and they are predicting H2 net sales of $6-10 million. There was an addition sale of $1.8 million of surplus bulk insulin in H1. For interest I added up the Symphony sales for H1 and they came to $5 million so it looks like the real sales value is 55% of the Symphony value. Aged, I think Peppy is correct. The revenue table for the 1st half of 2017 on page 28 of the 10-K shows gross sales of $4.268 million for H1 2017. The note below the table states that the net sales revenue of $2.7 million are for sales of Afrezza. The $1.8 million surplus insulin sale is not mentioned and cannot be included in the $4.3 million gross revenue figure because the net Afrezza revenue is simply obtained from the gross revenue figure by only subtracting out the discounts and rebates related to Afrezza sales. I also believe that the gross revenue figure is the one to watch rather than net revenue because it can be more directly tied to scripts without having to correct for rebates and discounts that can vary. My interpretation is that the H2 estimates are very conservative, as they should be, since this is the first time the company has given guidance on revenue from sales. It is imperative that the new MNKD management team achieve the upper end of the revenue guidance or exceed it to establish credibility with Wall Street, especially considering past performance. Consider also that the low end estimate of $9 million can probably be achieved from the compounding of refills over the 2 quarters with only modest increases in NRx. That is, the gains in NRx over the first half has essentially guarantee meeting the lower revenue number, as impressive as it looks. Smart move on Castagna's part.
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Post by therealisaching on Aug 8, 2017 14:53:37 GMT -5
All in all I thought it was a very good call. It was chock full of details. It wouldve been nice to have a final answer yesterday on capitalization needs, but it really sounds like they are trying to strike the right balance. Maxing the Mann loan give the company more time to show sales can be grown. Perhaps this leads to a better deal on international expansion.
Bankruptcy is off the table.
Highlights from my point of view:
Afrezza on 70% of commercial plans 110,000 online views of this TV commercial Will be running the commercial in 9000 HCP offices through outcome health program beginning this month New writers increased 41% in the second quarter of 2017 (Here comes compounding)
Potential sources of extending the runway Debt, equity, preferred equity, sale/leaseback of CT plant, development deals & international licensing opportunities.
Analyst call from Cantor Fitzgerald. No one of substance has been on an earnings call for several qtrs www.prnewswire.com/news-releases/cantor-fitzgerald-expands-healthcare-and-biotech-equity-research-platforms-with-addition-of-bill-tanner-phd-and-steven-halper-300379092.html
Lastly, Matt P is still involved. He has the background to close financings. It makes sense to keep him in place until capital in whatever form is secured. From the 10q
On May 25, 2017, the board of directors (the “Board”) replaced Matthew J. Pfeffer as Chief Executive Officer and Chief Financial Officer of the Company. Pursuant to a severance agreement in effect on that date, Mr. Pfeffer’s estimated current value of payments and benefits upon termination totaled approximately $1.2 million. At the time of the Board action, Mr. Pfeffer was expected to remain employed by the Company in an advisory capacity until July 31, 2017, before transitioning to severance. Subsequently, the Company and Mr. Pfeffer began negotiating a new agreement that would, if and when finalized, supersede the existing severance agreement. Given that the new agreement would override any prior severance agreements and amounts previously due to Mr. Pfeffer and contains special termination benefits that are contingent upon certain factors that cannot be reasonably estimated, the Company recorded no severance accrual for Mr. Pfeffer during the second quarter of 2017. Current salary and benefits continue to be accrued as earned.
When did they talk about bankruptcy at all... as being on or off anything. Time in the call, please, so I can relisten? There is still on ongoing concern warning in the SEC filings isn't there? Bankruptcy is never something companies discuss as being an option that is on the table of consideration. In fact by law they cannot consider it until it is the only viable option to protect creditors. So bankruptcies aren't something put on and taken off a table... it is something that happens when a company's other plans don't come to fruition. We're still in precarious situation, if for no other reason an economy wide credit crisis could cut off necessary funding to MNKD even if they were doing everything they hope to do. That was my declarative.
As far as the ongoing warning in the SEC filings, you'll find that in every struggling bio's financial. It's a CYA boilerplate.
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Post by dreamboatcruise on Aug 8, 2017 14:57:23 GMT -5
I just bought $1000 at $1.15 (shush! I won't be telling my wife about it, though) It jumped right afterward to $1.20, and then came back down. It brought my average cost in that account down from $6 to $5.60, so that was good. I think that even if there is dilution, losses from it will just be washed out going forward by the SP increases as the good news, sales and optimism grow. I am hoping that it is not ever going to go below a dollar. Bought some Jan 2019 $1.50 calls today. Still watching my Aug 11 $1.00 calls. Might get out of those by Friday with my shirt intact. The LEAPs will allow me to just relax and watch. I have upside exposure for the long term and my risk is well defined. I guess I liked what I heard last night, for the most part. Financing is the biggest outstanding concern. Well, if Big Al from the Jamboree is recommending it (I know he went on to have a very successful hedge fund career after the band split up), I guess I shouldn't miss out adding to my long position. Just bought some 2019 $1 strike straddles. Needs to hit $1.95 for break even, or $0.05 on the downside. Guess I'm confident that unless there is fire sale acquisition soon there is little chance we'll be in straddle purgatory ($0.05 to $1.95) come Jan 2019. I still think we may drift lower before the two Sept "calls", but we may drift higher as well. Saving some powder for either a last raid and/or buying shares (not option straddle) when finances are really cleared up.
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Post by derek2 on Aug 8, 2017 15:45:51 GMT -5
Bought some Jan 2019 $1.50 calls today. Still watching my Aug 11 $1.00 calls. Might get out of those by Friday with my shirt intact. The LEAPs will allow me to just relax and watch. I have upside exposure for the long term and my risk is well defined. I guess I liked what I heard last night, for the most part. Financing is the biggest outstanding concern. Well, if Big Al from the Jamboree is recommending it (I know he went on to have a very successful hedge fund career after the band split up), I guess I shouldn't miss out adding to my long position. Just bought some 2019 $1 strike straddles. Needs to hit $1.95 for break even, or $0.05 on the downside. Guess I'm confident that unless there is fire sale acquisition soon there is little chance we'll be in straddle purgatory ($0.05 to $1.95) come Jan 2019. I still think we may drift lower before the two Sept "calls", but we may drift higher as well. Saving some powder for either a last raid and/or buying shares (not option straddle) when finances are really cleared up. Hopefully, we won't have bbbbblood on the saddle.... bbbbblood on the ground....
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Post by thall on Aug 8, 2017 17:07:03 GMT -5
I am glad we know now what Matt's position is. Matt has given his heart and soul to Mannkind.
From the 10q
On May 25, 2017, the board of directors (the “Board”) replaced Matthew J. Pfeffer as Chief Executive Officer and Chief Financial Officer of the Company. Pursuant to a severance agreement in effect on that date, Mr. Pfeffer’s estimated current value of payments and benefits upon termination totaled approximately $1.2 million. At the time of the Board action, Mr. Pfeffer was expected to remain employed by the Company in an advisory capacity until July 31, 2017, before transitioning to severance. Subsequently, the Company and Mr. Pfeffer began negotiating a new agreement that would, if and when finalized, supersede the existing severance agreement. Given that the new agreement would override any prior severance agreements and amounts previously due to Mr. Pfeffer and contains special termination benefits that are contingent upon certain factors that cannot be reasonably estimated, the Company recorded no severance accrual for Mr. Pfeffer during the second quarter of 2017. Current salary and benefits continue to be accrued as earned.
He is working on a deal and he will make more if the deal go through. I bleve executives are way over paid, But in this case, I think this is good news. If he's working on a deal, then why didn't MNKD say something to that effect? They're leaving the impression that Pfeffer's actually still CEO and Mike is just some sort of a surrogate. If Pfeffer's fired, then he should be gone; if he's working on a deal, fine, then sign a contract paying him for whatever he accomplishes. Whoever heard of rengotiating a severance package after you've been fired?
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Post by dreamboatcruise on Aug 8, 2017 17:37:10 GMT -5
When did they talk about bankruptcy at all... as being on or off anything. Time in the call, please, so I can relisten? There is still on ongoing concern warning in the SEC filings isn't there? Bankruptcy is never something companies discuss as being an option that is on the table of consideration. In fact by law they cannot consider it until it is the only viable option to protect creditors. So bankruptcies aren't something put on and taken off a table... it is something that happens when a company's other plans don't come to fruition. We're still in precarious situation, if for no other reason an economy wide credit crisis could cut off necessary funding to MNKD even if they were doing everything they hope to do. That was my declarative.
As far as the ongoing warning in the SEC filings, you'll find that in every struggling bio's financial. It's a CYA boilerplate.
Ah... though much better when talking about conference calls to state that something is your opinion based on your overall impressions rather than presenting it in a way that someone could misinterpret it as having been presented by management. Far better to present in open and honest way such as "After listening to the call, it is my opinion they are not at risk of bankruptcy." The statements in the filings are from the accountants and they do have criteria for when they issue the warnings. These aren't in financials of companies in solid financial shape merely to be CYA. As you point out it is the struggling ones... and the ones that are struggling enough that from an accounting standpoint there is no substantiated analysis that rules out bankruptcy.
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Post by sportsrancho on Aug 8, 2017 18:07:21 GMT -5
He did no such thing! And you knew darn well what he meant. But it gave you another opening to say all the things you did. JMHO
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Post by dreamboatcruise on Aug 8, 2017 18:53:14 GMT -5
To me, listing a simple declarative statement (as if fact) after a setup referring to the call that included "It was chock full of details" most certainly could easily give the impression that was one of the details from the call.
Yes it is normally when someone makes assertions such as that one implying MNKD investment is risk free that I feel compelled to give balance by "saying the things I do". I think this board has at times done a disservice by running off balanced presentation of risk/reward in favor.
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Post by straightly on Aug 8, 2017 21:37:17 GMT -5
He is working on a deal and he will make more if the deal go through. I bleve executives are way over paid, But in this case, I think this is good news. If he's working on a deal, then why didn't MNKD say something to that effect? They're leaving the impression that Pfeffer's actually still CEO and Mike is just some sort of a surrogate. If Pfeffer's fired, then he should be gone; if he's working on a deal, fine, then sign a contract paying him for whatever he accomplishes. Whoever heard of rengotiating a severance package after you've been fired? Why not? You don't need a license, nor do you need to be employee to work deals, do you? Mark is onto something which could not be estimated. If it come about, his severance will be better than the $1.2m. If it does not, he would get his old severance pachage. It is all part of a deal which could be THE deal that should cover our short term and might even over shot it. Mike, on the other hand, want to put any deals off as much as he can, hoping better sales number will strenghen his negotiation position. All my speculations, of course. But I am buying it, literally.
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Post by buyitonsale on Aug 8, 2017 23:43:58 GMT -5
Why do I see "This post is hidden" 4 times on this page alone... ? ![:)](//storage.proboards.com/forum/images/smiley/smiley.png) I listened to the cc again today. I encourage all to go back and listen to summary and closing remarks by CEO. What is important to me as an investor? Trust, patience and not waisting my energy on negativity. Longs will win.
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Post by falconquest on Aug 9, 2017 6:20:47 GMT -5
He is working on a deal and he will make more if the deal go through. I bleve executives are way over paid, But in this case, I think this is good news. If he's working on a deal, then why didn't MNKD say something to that effect? They're leaving the impression that Pfeffer's actually still CEO and Mike is just some sort of a surrogate. If Pfeffer's fired, then he should be gone; if he's working on a deal, fine, then sign a contract paying him for whatever he accomplishes. Whoever heard of rengotiating a severance package after you've been fired? On your last point and this is pure speculation, perhaps interest in a deal re-emerged that Matt had worked on previously. Perhaps whoever is involved in the deal wants to negotiate with Pfeffer; or Mike needed Matt for his background on the deal. I don't necessarily believe this, I'm just throwing out a plausible scenario. This could result in a renegotiation of the severance. Mannkind better be working on some sort of deal because otherwise they'll be gone. We simply can't know what's in the works.
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Post by promann on Aug 9, 2017 6:43:50 GMT -5
If he's working on a deal, then why didn't MNKD say something to that effect? They're leaving the impression that Pfeffer's actually still CEO and Mike is just some sort of a surrogate. If Pfeffer's fired, then he should be gone; if he's working on a deal, fine, then sign a contract paying him for whatever he accomplishes. Whoever heard of rengotiating a severance package after you've been fired? On your last point and this is pure speculation, perhaps interest in a deal re-emerged that Matt had worked on previously. Perhaps whoever is involved in the deal wants to negotiate with Pfeffer; or Mike needed Matt for his background on the deal. I don't necessarily believe this, I'm just throwing out a plausible scenario. This could result in a renegotiation of the severance. Mannkind better be working on some sort of deal because otherwise they'll be gone. We simply can't know what's in the works. I believe MNKD has many options on the table and are trying to negotiate the best deal possible. I also believe there is absolutely no chance that they'll be gone. Just because we see from our view as a outsider that cash is a problem does not mean it is. I'm sure that Afrezza and MNKD will succeed and if it's only a can getting kicked I'm sure it will get kicked over and over to profitability. I have absolutely no worries or concerns. This in my opinion is a screaming buy.
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