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Post by mnholdem on Jan 12, 2018 9:54:05 GMT -5
How did I miss this?
Form 10-Q Quarterly Report Filed Nov 7, 2017 investors.mannkindcorp.com/secfiling.cfm?filingID=1564590-17-22243&CIK=899460
(Pages 19-20)
8. Sale of Intellectual Property
On April 12, 2017 the Company entered into an agreement to sell certain oncology assets and patents to Fosun. Fosun paid the Company a one-time nonrefundable payment of $0.6 million net of taxes in June 2017 and is required to pay royalties on net sales of products by Fosun and its affiliates and other consideration based on revenues from any licensees. The Company determined that the sale of the assets did not constitute a business and accordingly accounted for the transaction as a sale of assets. The Company evaluated the accounting for the payments received in 2017 under the multiple element accounting guidance and recorded the $0.6 million in payments received in revenue – other in the accompanying condensed consolidated financial statements during the second quarter of 2017 as the deliverables under the agreement were substantially delivered as of June 30, 2017. See Note 1 — Description of Business and Summary of Significant Accounting Policies for additional information on the Company’s accounting for multiple element arrangements. The Company also evaluated the accounting for royalties and other consideration in the agreement. Since the amount of product that Fosun will ultimately be able to sell upon successfully utilizing this technology is uncertain, no royalty revenue will be recognized until such time when Fosun or its affiliates sell product to a third party and royalties are due to the Company.
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Fosun is a huge Chinese conglomerate whose 2017 first half revenue was 32.27 billion Chinese Yuan (~$5.6 billion USD). MannKind gave no specifics on their sale of "certain oncology assets and patents" so this will remain a mystery "until such time when Fosun or its affiliates sell product to a third party and royalties are due to the Company".
The bottom line, from this investor's viewpoint, is that this transaction proves that there are global interests in MannKind's technology.
Good Fortune All! 
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Post by therealisaching on Jan 12, 2018 10:10:06 GMT -5
This was a result of the Locust Walk engagement.
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Post by madog365 on Jan 12, 2018 10:18:00 GMT -5
Great, Fosun buys a bunch of patents for 600k as an anti competitive measure. Drop in a bucket for them and they can prevent others from doing business with technosphere technology in the oncology space.
Believe me if this was a good deal, Mannkind would have PRed this instead of casually mentioning it in their 10-Q
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Post by akemp3000 on Jan 12, 2018 10:28:25 GMT -5
Great, Fosun buys a bunch of patents for 600k as an anti competitive measure. Drop in a bucket for them and they can prevent others from doing business with technosphere technology in the oncology space. Believe me if this was a good deal, Mannkind would have PRed this instead of casually mentioning it in their 10-Q To the contrary. If this wasn't a good deal, $600k was certainly not enough for Mannkind to accept it. Knowing Mannkind's history with Sanofi, Mike's smarter than to accept a deal that would allow an anti-competitive play for only $600k. Guess we'll learn more later. |
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Post by madog365 on Jan 12, 2018 10:32:41 GMT -5
I'm not following, Mannkind did accept the deal.
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Post by kbrion77 on Jan 12, 2018 10:34:51 GMT -5
Great, Fosun buys a bunch of patents for 600k as an anti competitive measure. Drop in a bucket for them and they can prevent others from doing business with technosphere technology in the oncology space. Believe me if this was a good deal, Mannkind would have PRed this instead of casually mentioning it in their 10-Q To the contrary. If this wasn't a good deal, $600k was certainly not enough for Mannkind to accept it. Knowing Mannkind's history with Sanofi, Mike's smarter than to accept a deal that would allow an anti-competitive play for only $600k. Guess we'll learn more later. To the contrary of this MNKD has absolutely no leverage at the table. It's a deal not a good deal. And I agree if this was a good deal or even some type of licensing partnership there would have been a PR but they buried it in the Q. |
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Post by agedhippie on Jan 12, 2018 10:42:37 GMT -5
Great, Fosun buys a bunch of patents for 600k as an anti competitive measure. Drop in a bucket for them and they can prevent others from doing business with technosphere technology in the oncology space. Believe me if this was a good deal, Mannkind would have PRed this instead of casually mentioning it in their 10-Q To the contrary. If this wasn't a good deal, $600k was certainly not enough for Mannkind to accept it. Knowing Mannkind's history with Sanofi, Mike's smarter than to accept a deal that would allow an anti-competitive play for only $600k. Guess we'll learn more later. Fosun are blocking other oncology competitors, not Mannkind. Mannkind are unlikely to start building oncology products from scratch and are far more likely to work on delivering existing products. It's just patent portfolio pruning by Mannkind which is standard practice (realize value from an unusable asset). |
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Post by mnholdem on Jan 12, 2018 12:13:20 GMT -5
To the contrary. If this wasn't a good deal, $600k was certainly not enough for Mannkind to accept it. Knowing Mannkind's history with Sanofi, Mike's smarter than to accept a deal that would allow an anti-competitive play for only $600k. Guess we'll learn more later. Fosun are blocking other oncology competitors, not Mannkind. Mannkind are unlikely to start building oncology products from scratch and are far more likely to work on delivering existing products. It's just patent portfolio pruning by Mannkind which is standard practice (realize value from an unusable asset). That's the way I look at it, too. The short of it is that you pick up $600k selling something you aren't planning to do anything with (like a bunch of stuff in my shed) and the long of it is that MannKind will collect future royalty if Fosun develops the IP & patents into marketable product(s). China is such a huge market so it's definitely the royalty that caught my attention.
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Post by brentie on Jan 12, 2018 13:00:22 GMT -5
Great, Fosun buys a bunch of patents for 600k as an anti competitive measure. Drop in a bucket for them and they can prevent others from doing business with technosphere technology in the oncology space.Believe me if this was a good deal, Mannkind would have PRed this instead of casually mentioning it in their 10-Q Madog, I have no idea if MNKD got a good deal or not. But I think that the IP they sold has nothing to do with Technosphere but is probably related to their oncology work from 10 years ago. You can read about that here.... seekingalpha.com/article/81899-mannkind-overlooked-biotech-with-excellent-prospects-part-vIt starts in the tenth paragraph with "The second area which Mannkind is concentrating on is cancer therapies." |
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