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Post by garrett on Jun 13, 2014 5:50:31 GMT -5
As far as a partnership, I see no advantage in Mannkind taking its time to get the best deal - they simply don't have it due to dwindling cash assets.
In fact, I see the advantage with potential partners. The longer these potential partners protract negotiations the more anxious Mannkind could become to get a deal done and thereby possibly acquiesce to certain key elements of the deal. A party who has a critical time table approaching never is a good thing in negotiations.
On the other hand, I am sure Greenhill will run this like a company divestiture auction. That is, initial letters of interest, then a final round of letters of intent, then Mannkind selecting whom their partner will be. That's when the lawyers will undoubtedly drag things out papering the deal. Hopefully, there will be no further dilution during this process.
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Post by babaoriley on Jun 13, 2014 8:43:08 GMT -5
garrett, time should be taken, and I agree with bradleysbest and coco 100%. We've come too far and a few more weeks is fine.
My point above was merely about the stock price action that I believe will occur based on what was said at the Goldman Sachs conference. I'm thinking this was the plan all along, but some became pretty convinced that a partnership had a good chance of being announced prior to or concurrently with the FDA decision. The likelihood of that has suffered a significant downgrade. If there is any trading to be done, this last conference offers some guidance.
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Post by mannmade on Jun 13, 2014 9:18:53 GMT -5
Baba, I agree with you. We all have different scenarios that we play out in our heads because we have the time and we really don't know how it will work out beyond what we think we hear. Almost like going delirious alone on an island for those of us that have been involved for several years... Think Tom Hanks in Castaway... We are the Castaways and all this conversation is something we do in part to entertain ourselves until we are rescued, (if you are long...). This creates hope and hope is necessary to survive... No hope and we give up... However, having said that I believe we are about to get off this island... With approval and a relatively open label we will see the ship coming and with partnership we know it will have seen us... And we will know that we are on our way home at last...
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Post by noonen on Jun 13, 2014 9:52:59 GMT -5
Some good points made by all.
One thing, I thought I heard them say (Mr. Mann specifically) during the annual meeting that it was a possibility that a partnership may even happen before fda, so I am not sure this 6-8 weeks post-approval was always the plan. Maybe so, but some wires were crossed in terms of sr mgmt talking. The emotional side of me was pissed when I heard the 6-8 weeks comment. I have not been in this as long as a lot of you (only a couple yrs), but even in that short time I'm sick of hearing the partnership carrot being put out there. I liked it better when they just said "Greenhill is doing their job, we can't say anything else." Stop getting led into answering questions.
On the point of cash burn. Who gives a flying f if they issue 1,2,5 or 10mm shares right now? Stocks pinned at 10 today, hopefully it stays around there. Granted, if you've bought in from 6 and up you clearly (and understandably) don't agree with this. Even if this goes down a buck or two, I'll take that dilution over giving any potential partner any additional leverage in negotiations. We're at 380ish shares out, I assume 500 or so before this is all said and done.
just some thoughts. love reading what you all put out there every day. except for mankind (one n) of course. although that was kind of amusing.
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Post by BD on Jun 13, 2014 10:47:41 GMT -5
Note to noonen, mannmade, and anyone else who was following the confusion here: I corrected noonen's post above, and deleted all the discussion of the typo. Just figured that would keep everyone reading this thread later from getting totally confused, as I think we all were
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Post by thekindaguyiyam on Jun 13, 2014 11:13:36 GMT -5
Seeking Alpha's article today reviewing the Goldman Sachs Health Care Conference yesterday: "COO Hakan Edstrom spoke of MannKind being in serious negotiations with multiple potential partners and identified some of them as already in the diabetic market, which likely means Big Pharma." "Partnership Potential for MannKind COO Edstrom made it clear that MannKind is in serious negotiations with multiple potential partners and many of these companies are currently in the diabetic market. Knowing that the diabetic market is controlled by 3 main Big Pharma companies, it could be concluded that Big Pharma is very interested in Afrezza. He also made it clear that the company was NOT in a poor cash-strapped negotiating condition, where it needs to take any deal available. In turn, this means the company has negotiating power when it comes to Afrezza, and it will certainly take its time and get the best deal available. Also discussed was the timing of a partnership announcement, where COO Edstrom stated it would be about a 6-8 week time frame as of June 12, 2014. This should be expected, and is not something that should be seen as a negative event for the company. The potential partner and MannKind will want to see the label approved by the FDA before finalizing an agreement. The cleaner the label is from the FDA, the better the position for MannKind to get a more favorable deal. So, why would Big Pharma wait until after approval to ink a deal? The answer likely lies with MannKind, because they understand better what they have and what they have to lose or gain. Personally, I believe the lack of an announced partner right now is more likely MannKind holding out, rather than Big Pharma holding out." seekingalpha.com/article/2267693-mannkind-entertaining-multiple-partnership-possibilities-ahead-of-fda-decision-on-afrezza
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Post by noonen on Jun 14, 2014 6:09:45 GMT -5
Note to noonen, mannmade, and anyone else who was following the confusion here: I corrected noonen's post above, and deleted all the discussion of the typo. Just figured that would keep everyone reasding this thread later from getting totally confused, as I think we all were Thanks BD, and apologies for muddling the board.. and to mannmade as well.
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Post by mannmade on Jun 14, 2014 9:22:05 GMT -5
Ditto... All good!
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