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Post by babaoriley on Feb 28, 2018 1:37:37 GMT -5
Hmmmm... am I mistaken or was nothing said about RLS this time? RLS is a big, fat red herring as far as I'm concerned. |
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Post by babaoriley on Feb 28, 2018 1:39:39 GMT -5
With respect to Mike's comment about having a signed term sheet and hoping to have another soon, does anybody have experience regarding how long it takes to go from having a signed term sheet to having a finalized deal? So long as the parties don't change their minds, and the terms sheets were reasonably detailed, and the parties actually want their lawyers to work diligently on it, could be as little as two weeks and as much as 6 weeks. Assuming both parties want to move forward, to me, longer than six weeks would tell me the agreement is over-lawyered. |
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Post by tchalaa on Feb 28, 2018 4:46:11 GMT -5
I guess Castagna is embracing the emotional status of many here - cautious optimism: While Pat talked of accelerating script growth, Mike's net revenue projection of 25-30 million for 2018 represents little or no growth. Maybe the result of being stung by barely meeting his 2H17 projections (even with the revenue "adjustment") and also wisely leaving enough room to raise estimates in future CCs. Seems to me this will be better for the pps than giving more aggressive projections and missing them. Much better to beat than barely meet financial targets. I don't see it that way, as an emotional play. I think reality has set in, Mike has learned a lot, and now with Dr. Kendall he has the biggest player in the community on his team saying afrezza should be the standard of care. He now has the foundation laid but this is going to take 2 years for afrezza to be positioned as a super blockbuster.2018 is going to be a busy year for Mike as BP after BP will be wanting to talk. As Mike said on the call he will need to weigh doing a deal with a BP or going it alone and unless its a drop dead deal he is now in a position to go it alone. No one but MNKD has afrezza and no one has anything in their pipelines to even come close. Let's start with BLOCKBUSTER first |
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Post by uvula on Feb 28, 2018 8:32:52 GMT -5
Has anyone mentioned the several PowerPoint mistakes in the presentation? How can a company be this sloppy?
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Post by matt on Feb 28, 2018 8:36:53 GMT -5
With respect to Mike's comment about having a signed term sheet and hoping to have another soon, does anybody have experience regarding how long it takes to go from having a signed term sheet to having a finalized deal? It all depends on the term sheet; the more detailed the terms the less there is to discuss. Some companies put a lot of effort into creating a very detailed term sheet such that a good lawyer can draft a definitive document in a few days, while others draft term sheets so vague they boil down to "the parties agree to have discussions on creating some sort of arrangement, maybe". The first is a detailed outline of a final agreement, and the second is essentially worthless. I have been involved in deals that went from an initial introduction to essentially closed in a single day, and I have also been involved in deals where the negotiations took years (literally years). If the term sheet is comprehensive, most of the sticky points should have been discussed and settled. Usually it comes down to the number and magnitude of the firm obligations for each side, and the provisions that allow the contract to be cancelled or amended. Companies like to talk; they don't like to write checks. |
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Post by dh4mizzou on Feb 28, 2018 8:42:27 GMT -5
If only I had a nickle for every turning point we've had with this company. This is my first so I will put a nickel in my piggy bank. Even right after approval it was a let down when they couldn't finalize the first deal and ended up signing with Sanofi. Having Dr. Kendall is a game changer. Having Dr. Kendall having all the studies and having read all the studies is huge. I was talking with a M&A biochemist at a major BP the day prior to Dr. Kendall joining. She totally dismissed afrezza sighting the 171 & 175 studies. Who could blame her. The next day it was announced Dr. Kendall took the job and all of a sudden she wanted to know more about afrezza. If she can now see what Al knew I think she too will soon be saying afrezza should be the standard of care.
Sorry sayhey but your biochemist sounds like to short sighted lemming to me. If she was so swayed by the 2 studies you referenced I find it striking that the addition of one man to the staff could "immediately" think Afrezza was now viable.
Just M2CW.
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Post by sla55 on Feb 28, 2018 8:52:51 GMT -5
www.investopedia.com/terms/t/termsheet.aspWhat is a 'Term Sheet' A term sheet is a nonbinding agreement setting forth the basic terms and conditions under which an investment will be made. A term sheet serves as a template to develop more detailed legal documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is then drawn up. BREAKING DOWN 'Term Sheet' A term sheet lays the groundwork for ensuring that the parties involved in a business transaction agree on most major aspects of the deal, thereby precluding the possibility of a misunderstanding and lessening the likelihood of unnecessary disputes. It also ensures that expensive legal charges involved in drawing up a binding agreement or contract are not incurred prematurely. Term sheets are not generally considered legally binding and are therefore seen as unenforceable in a legal sense. In that regard, a term sheet may seem similar to a letter of intent when the action is predominately one-sided, as in acquisitions, or a working document to serve as a jumping-off point for more intensive negotiations. Common Aspects of Term Sheets Term sheets, at times referred to as memorandums of understanding, serve as a summary of the terms being discussed or offered. Essentially all term sheets will contain certain elements, such as information pertaining to the identification of the parties involved. The basic information surrounding any involved assets will be outlined, as well as an initial purchase price, often accompanied by contingencies that may constitute a change in aforementioned, and the form of payment that will be supplied. Often, there is an acceptance period, providing a time frame for a response regarding the information set forth in the term sheets. Term Sheets in Use Term sheets generally cover the more important aspects of a deal without going into every minor detail and contingency covered by a binding contract. For example, a term sheet from a venture capital company that is investing in an early-stage company may contain such details as the amount of investment, the percentage stake sought, anti-dilutive provisions and the valuation. A term sheet may also be used as part of a merger or attempted acquisition. The term sheet typically contains information regarding the initial purchase price offer and preferred payment method, as well as what assets are included in the deal. It may also contain information regarding what, if anything, is excluded from the deal or any items that may be considered requirements by one or both parties.
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Post by brentie on Feb 28, 2018 8:58:56 GMT -5
Anybody catch this? Not mentioned on the call. Page 51 of the 10-K Looks like a new ATM agreement. Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald & Co. On February 27, 2018, we entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), as sales agent, pursuant to which we may offer and sell, from time to time, through Cantor Fitzgerald, shares of our common stock having an aggregate offering price of up to $50.0 million or such other amount as may be permitted by the Sales Agreement (the “ATM Offering”). The shares will be offered and sold pursuant to our shelf registration statement on Form S-3 (File No. 333-210792). MannKind down 10% premarket on planned $50M stock sale Feb. 28, 2018 8:49 AM ET|About: MannKind Corporation (MNKD)|By: Douglas W. House, SA News Editor MannKind (NASDAQ:MNKD) slips 10% premarket on modest volume on the heels of its filling of a prospectus for the sale of $50M of common stock through Cantor Fitzgerald. Cantor will sell the shares "at-the-market" over time and will earn a 3% commission for its efforts. Net proceeds will be used for general corporate purposes. seekingalpha.com/news/3335090-mannkind-10-percent-premarket-planned-50m-stock-sale?uprof=46#email_linkAnd investors.mannkindcorp.com/node/15321/html |
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Post by peppy on Feb 28, 2018 9:10:17 GMT -5
Anybody catch this? Not mentioned on the call. Page 51 of the 10-K Looks like a new ATM agreement. Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald & Co. On February 27, 2018, we entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”), as sales agent, pursuant to which we may offer and sell, from time to time, through Cantor Fitzgerald, shares of our common stock having an aggregate offering price of up to $50.0 million or such other amount as may be permitted by the Sales Agreement (the “ATM Offering”). The shares will be offered and sold pursuant to our shelf registration statement on Form S-3 (File No. 333-210792). thank you Derek. investors.mannkindcorp.com/node/15301/html |
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Post by akemp3000 on Feb 28, 2018 9:26:58 GMT -5
Mike C said they have a term sheet. He did not say for how long they've had it. As Matt explained, the time to go from term sheet to contract could be anywhere from days to years. Another suggested up to six weeks. IMO, the challenge of contract details to introduce and sell a new drug in a foreign country requires far more details than the typical U.S. business contract as each country will be different. There's really no way to predict how long this might take. I'll take Mike C at his word when he said the next international partnership is expected to be announced in the first half of 2018. To look for it sometime in April or May seems realistic though it would be nice surprise to hear of this earlier. BTW, I have authored more than my share of detailed term sheets.
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Post by casualinvestor on Feb 28, 2018 9:31:36 GMT -5
Why do they need a new ATM? I don't recall hearing anything about the "old" ATM being used. Do these agreements have an end date?
Also, I thought the summary of share releases was useful history:
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Post by traderdennis on Feb 28, 2018 9:56:04 GMT -5
Mike C said they have a term sheet. He did not say for how long they've had it. As Matt explained, the time to go from term sheet to contract could be anywhere from days to years. Another suggested up to six weeks. IMO, the challenge of contract details to introduce and sell a new drug in a foreign country requires far more details than the typical U.S. business contract as each country will be different. There's really no way to predict how long this might take. I'll take Mike C at his word when he said the next international partnership is expected to be announced in the first half of 2018. To look for it sometime in April or May seems realistic though it would be nice surprise to hear of this earlier. BTW, I have authored more than my share of detailed term sheets. Kemp I think you give mike way too much credit. Nothing in the presentation yesterday about a fifty million dollar atm which he knew about. #sleezy |
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Post by silentknight on Feb 28, 2018 9:57:14 GMT -5
Dilution is the only way the company can generate significant income, enough to keep the company afloat anyway. They can't do it through sales and they can't do it through partnerships. The company has diluted shareholders consistently over the last two years and I don't expect it to stop anytime soon, as the company is nowhere near profitable and likely won't be for several more years. Investors had better get accustomed to dilution.
Those new shares everyone voted for a few months ago appear to be planned for issuance by the way of secondary offerings and employee stock options. Not very beneficial for existing shareholders but again, the prospects of dilution should not be taking anyone by surprise anymore, sadly enough.
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Post by lurker on Feb 28, 2018 10:10:59 GMT -5
I didn't remember hear anything about a projected burn rate, did I miss something?
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Post by akemp3000 on Feb 28, 2018 10:13:35 GMT -5
Mike C said they have a term sheet. He did not say for how long they've had it. As Matt explained, the time to go from term sheet to contract could be anywhere from days to years. Another suggested up to six weeks. IMO, the challenge of contract details to introduce and sell a new drug in a foreign country requires far more details than the typical U.S. business contract as each country will be different. There's really no way to predict how long this might take. I'll take Mike C at his word when he said the next international partnership is expected to be announced in the first half of 2018. To look for it sometime in April or May seems realistic though it would be nice surprise to hear of this earlier. BTW, I have authored more than my share of detailed term sheets. Kemp I think you give mike way too much credit. Nothing in the presentation yesterday about a fifty million dollar atm which he knew about. #sleezy This must have been meant for someone else. I've only discussed the international term sheet based on facts presented and have not commented on any ATM. |
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