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Post by mnholdem on Feb 2, 2018 12:33:01 GMT -5
M&A Chatter Swirls Over Amgen's $70B Cashpile Published: Feb 02, 2018 By Mark Terry
Excerpt:
John Carroll, with Endpoints News, writes, “With tax reform bolstering its 2018 projections and $27 billion burning a hole in its pocket, at least one prominent analyst says Amgen looks to have a war chest for deals that could provide up to $70 billion in ‘deal capacity.’”
At last night’s financials conference call, Amgen’s chief executive officer, Robert Bradway, said, “So we have been consistent for some time in saying that we have the financial capacity and we are interested in looking for deals that we think we can add value to in our areas of focus, so we are going to continue to do that. And as the other question implied, we have felt for some time that there are pockets of excess capacity in the industry and we will look to see whether we can help create some value by being part of the consolidation around those.”
Geoffrey Porges, an analyst with Leerink, wrote in a note to investors, “Conspicuously, Amgen did not reiterate its cautious language about asset prices and risk on this call, and it appears to be focused on taking advantage of its balance sheet and cash flow to build scale in one or more of its core therapeutic areas (hematology-oncology, neuroscience, inflammation, bone diseases, and cardiovascular). The company’s favorable comments about its primary care drugs such as Repatha and Prolia suggest that its interests are more likely to be in companies and products addressing widely distributed diseases rather than the niche markets that are more commonly favored by other companies.”
Source: www.biospace.com/article/unique-m-and-a-chatter-swirls-over-amgen-s-70b-cashpile/ |
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Post by mnholdem on Feb 2, 2018 12:35:00 GMT -5
Diabetes does not appear to be an area of interest, but developing Technosphere-delivered drugs may be of interest to Amgen...not to mention, MannKind does seem to have a number of ex-Amgen employees working for the company these days. |
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Post by hans on Feb 2, 2018 13:21:50 GMT -5
mnholdem, Thank you for reporting that information. That is very good info to know. Do you believe Amgen to be interested in the technosphere science and if so at what value? Other questions quickly come to mind then if MNKD sold the science to Amgen, like would MNKD keep the Danbury facility to continue manufacturing afrezza? or would that be included in the sale and how would the manufacture of Afrezza be structured in sale? I also wonder if this is why Mike has continued to build up the MNKD mgmt possibly knowing that cash flow will not be an issue sooner than later. Your information concerning Amgen brings alot of questions when you pair it up with MNKD technosphere. Thank you for your information sharing.  ) |
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Post by mytakeonit on Feb 2, 2018 13:54:17 GMT -5
So do we change the other thread to "If I had $70B"  |
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Post by hans on Feb 2, 2018 14:03:42 GMT -5
To have Amgen's problems, right?
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Post by lennymnkd on Feb 2, 2018 14:14:26 GMT -5
Yes , structuring the sale has to be quite complicated... been wondering for the longest time how it will be done, if at all . Has to be slowing our progress on that front .
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Post by dreamboatcruise on Feb 2, 2018 14:30:39 GMT -5
mnholdem, Thank you for reporting that information. That is very good info to know. Do you believe Amgen to be interested in the technosphere science and if so at what value? Other questions quickly come to mind then if MNKD sold the science to Amgen, like would MNKD keep the Danbury facility to continue manufacturing afrezza? or would that be included in the sale and how would the manufacture of Afrezza be structured in sale? I also wonder if this is why Mike has continued to build up the MNKD mgmt possibly knowing that cash flow will not be an issue sooner than later. Your information concerning Amgen brings alot of questions when you pair it up with MNKD technosphere. Thank you for your information sharing. ) Do you believe in Santa Claus and if so what is he bringing us  |
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Post by dreamboatcruise on Feb 2, 2018 14:32:54 GMT -5
Yes , structuring the sale has to be quite complicated... been wondering for the longest time how it will be done, if at all . Has to be slowing our progress on that front .And MNKD management is probably embarrassed by the riches being offered, so they likely are delaying out of humility |
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Post by lennymnkd on Feb 2, 2018 14:40:11 GMT -5
Are you suggesting they grab what they can get ? Glad Mikes in charge .
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Post by mnholdem on Feb 2, 2018 16:30:23 GMT -5
DBC,
You need to do your own due diligence on Santa, but I'm happy to share my beliefs about Amgen.
As a former employee and executive of Amgen, Castagna knows the company and they know him. This would enable Mike to present pipeline candidates that he could be reasonably certain would fit within Amgen's areas of focus.
As a PharmD, Castagna understands the properties of the various molecules that MannKind's scientists have successfully joined to Technosphere probably better than any MannKind executive since Alfred Mann. Mike would bring experience and credibilty into discussions.
This second attribute would apply with any potential partner, while the first is related specifically to Amgen and, as is true with any business, who you know can be every bit as important as what you know.
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Post by dreamboatcruise on Feb 2, 2018 17:09:36 GMT -5
DBC, You need to do your own due diligence on Santa, but I'm happy to share my beliefs about Amgen. As a former employee and executive of Amgen, Castagna knows the company and they know him. This would enable Mike to present pipeline candidates that he could be reasonably certain would fit within Amgen's areas of focus. As a PharmD, Castagna understands the properties of the various molecules that MannKind's scientists have successfully joined to Technosphere probably better than any MannKind executive since Alfred Mann. Mike would bring experience and credibilty into discussions. This second attribute would apply with any potential partner, while the first is related specifically to Amgen and, as is true with any business, who you know can be every bit as important as what you know. The things you point out are reasonable assertions. However, especially given that we've had a firm trying to play matchmaker for the pipeline for quite some time and given Mike's recent comment about needing to get through Phase 1 trials to get a reasonable deal (comment specifically about Trep for PAH), I think the chances of a deal before the pipeline is moved forward are not great. Actually your observation on Mike knowing people at Amgen would indicate to me that they don't see a match... i.e. it probably isn't an issue of Mike being granted access to pitch that has resulted in lack of a deal to date during this period when MNKD desperately needs cash in order to ramp up marketing of Afrezza. Just my take on the state of pipeline. Obviously all of us are relegated to speculation. By the way, a large talking rabbit once assured me that Santa is real... why would he lie? |
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Post by mnholdem on Feb 2, 2018 17:16:36 GMT -5
Was he from Seeking Alpha? The Sanofi deal took around two years to complete and Mike only just took the reins. I'll grant you the fact that outside interests will often want solid data for crunching numbers for collaborating on Technosphere API candidates. |
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