Is MNKD going to sell off Afrezza?

[goyocafe]

Lakers posted the following in an unrelated thread that was locked before I could offer up a response.

Interesting exchange between Kastanes and OS. Thoughts?

Kastanes

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The troubling aspect of the India deal is it indicates very little upfront money will be generated through Afrezza partnerships; MannKind's only option to raise money is through the authorized shares. Castagna needs to consider selling the entire Afrezza franchise.

11 May 2018, 03:09 PM

Spencer Osborne, Contributor

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Author’s reply » Kastanes.....

"Castagna needs to consider selling the entire Afrezza franchise."

I happen to agree that a shift to a pipeline could be the best path forward. Sell off Afrezza for a royalty and a manufacturing contract, and then raise additional capital to get a robust pipeline.

That being said, it appears that such a move will get more difficult. With Brazil and India out of the mix, a buyer is getting less than the whole enchilada. With another term sheet in the works, that could get even more complex.

Funny anecdote.....

2 years ago there was an "offer" at the annual shareholder meeting by Henry Orlosky proposing $500 million cash for a 51% stake for rights to China (if I recall). At the time many passionate longs scoffed at the idea of "such a low offer". Fast forward to today, and those same people seem to be celebrating $2.2 million for India. Imagine what a $500 million cash infusion would have done over the last 2 years.

11 May 2018, 03:30 PM

Read more: mnkd.proboards.com/thread/9953/fix-stupid-ii?page=3#F


Here’s what MC said at the end of the call. I don’t think they have any plans of selling Afrezza based on his comments.

And when you think about the next 5 years, Afrezza U.S. will be the backbone of the company. International expansion will continue to layer on additional markets in the next 12 and 24 months. We hope to find a good partner for Treprostinil. We are also looking to bring in another asset that would supplement our field force capacity and offset that cost. And we believe pediatrics will be a nice meaningful opportunity as we continue to progress the Phase 1 part of the trial, going into the Phase 3 later this year.

[boca1girl]

Kastanes sure has taken an about face since I joined the board. I remember him being very bullish about Afrezza and Mannkind and now he seems to be SO’s right hand man.

Of course Mannkind could sell off Afrezza to concentrate on further developing the pipeline, but based on management’s comments, I doubt that will happen. When a partner is found for TreT, funds will be used for promoting Afrezza and developing additional pipeline products. With Epipen shortages being reported in the news again this past week, I believe EpiT will reappear as the next product in the que.

[sportsrancho]

Kastanes sure has taken an about face since I joined the board. I remember him being very bullish about Afrezza and Mannkind and now he seems to be SO’s right hand man.



First thought ...it’s not really an about face. It’s a continual pessimism.

Second thought... people are making way too big of a deal about the fact that we need two or three more months of money to make it to the end of the year.
I believe Mike means and intends to do exactly what he said. I’m thinking if we get some buyout offers two or so years down the road the BOD will make that decision. 90% of small bio’s get acquired. I would like to hear from each of them before I vote.

[Deleted]

boca1girl - To set you straight, I still am of the opinion that Afrezza is the greatest advancement for diabetes since the discovery of insulin. If MannKind had an infinite amount of time and money to continue their sales effects MannKind could get to cashflow breakeven. Unfortunately, MannKind doesn't have the money to keep the lights on indefinitely with its limited resources.

I want MannKind to continue as a drug developer and potentially contract manufacturer. Selling Afrezza could allow that. Continuing to market a drug that costs more to manufacture and sell than the revenue it generates makes no sense.

[uvula]

2 unrelated comments.

The first is that many of us have switched opinions on mnkd. Thus is normal and not a sign of anything evil. I go back and forth all the time. The only thing that doesn't change for me is my regret at buying this stock.

The second is that, according to the manufacturer, the epipen shortage was caused by a manufacturing change and production is already back to normal. There is no way that mnkd will benefit from this.

[Deleted]

@sportsrancho "First thought ...it’s not really an about face. It’s a continual pessimism."

Yes, I am pessimistic about Afrezza sales and MannKind's finances, not the science.

[sportsrancho]

Many people are pessimistic about Mannkind making it as a company but believers in Afrezza... Do I flip-flop...hell no! Keep your eye on the ball! Thank God Mike is committed therefore he brings other people on board like David Kendall that are also!

[sayhey24]

The India deal is a distributorship not an equity acquisition. The first milestone was signing of the deal. At this point we do not know what the other milestones are nor do we know if there are guaranteed quarterly sales quotas.

I for one think afrezza is a distributive technology. What we have learned over 3 years is the FUD was FUD and when properly dosed afrezza has exceeded my expectations and they were pretty high.

Mike said during the call afrezza being the standard of care. Whats that worth in the T2 market? Companies like Merck are spending a lot of money playing around with AWS and Alexa. How about something which can actually address the root cause in a safe way - the body not having enough insulin for its needs?
www.merck.com/about/featured-stories/merck-amazon.html

I was about 2 rows behind the guy representing the Chinese company and 3 years later I would still laugh at the offer with the potential sitting in front of us with the Mike/Dave team.

[veritasfiliatemporis]

Between optimistic and pessimistic, there is realistic I see the problems but also the potential SO he is always pessimistic or latent pessimistic in the best case scenario...

[golfeveryday]

May 12, 2018 8:07:29 GMT -5 @kastanes said:

@sportsrancho "First thought ...it’s not really an about face. It’s a continual pessimism."

Yes, I am pessimistic about Afrezza sales and MannKind's finances, not the science.

interesting timing on the sentiment change. Why not say this when MNKD was really struggling. They are turning this ship around and speeding up. Shorts are covering for a reason. You should likely follow their lead and do the same. Many positive things coming your way in my opinion. Being short is not a good choice and the smart ones are covering.

[Deleted]

golfeveryday "Why not say this when MNKD was really struggling."

I have been for years, ask @sportsrancho

[rockstarrick]

I would say that if mnkd were to sell off Afrezza, they would also sell off mnkd.
In my opinion, not chance in hell,,,
ain’t happening.

Go Mikey !!!

🤘🏻✌🏻😂

[golfeveryday]

May 12, 2018 8:33:30 GMT -5 @kastanes said:

golfeveryday "Why not say this when MNKD was really struggling."

I have been for years, ask @sportsrancho

well, your clear sentiment change is right in line when shorts are trying to get out of the way. Enjoy the weekend.

[Deleted]

golfeveryday as I have written, I am pessimistic about Afrezza sales and MannKind's finances, not the science. I still own every share I have purchased. I don't want Afrezza to bring down MannKind, I want MannKind to succeed. I don't know how to explain it better.

[sportsrancho]

He’s been pessimistic for years, although it was not obvious on here.
The change is he posted it on SeekingAlpha.