MannKind Corp. (MNKD)

[J.T. The DD King]

Humor me for a minute & I'll show you all how I got my name.

I look at it this way. If the FDA denied Afrezza, Old Al using $1B of his own cash & being $2B in debt would be looking at Chapter 7.

Al has a huge portfolio of inventions. Including a device I recently read about that enables amputees to "Feel" prostestics.

Mix that with the fact in order to complete a 2.5 year FDA study extension, contractor's working on Afrezza probably knew they had Al over a barrel, therefore took advantage, so when royalties start rolling in, the Afrezza FDA approval would be bittersweet.

Then taking into consideration how much Afrezza is worth. I read a valuation of $11B through 2016 which makes MNKD looking awful sweet for a hostile takeover. Pfizer spent how many billions & how many years only to come up empty handed?

So here we have MNKD cash strapped with assets worth billions. Not even taking into consideration an insulin bank worth something like $500M that doesn't show on a Q or a K, all of which firmly paints a bullseye on old Al's back.

So how does an old Maverick like Al who's been quoted as saying "Afrezza is his legacy given to mankind" save this legacy either from Raiders or BK?

As far as I can tell there is only one way.

Contractor's have specific clauses in their agreements prohibiting the transfer of their IP, and a public company cannot transfer assets like this without a shareholder vote.

This only leaves a reverse triangular merger with a shell. Al can legally transfer assets & IP into a subsidiary & the sub does a RTM with a shell which protects all of Al's assets from a raider or creditors.

If I'm correct current MNKD shareholders would be protected. The shares of the shell would be increased, forward split & a pro-rata share distributed to MNKD shareholders by way of a dividend.

All the while MNKD shares drop to sub-penny levels having $2B in liabilities with $0.00 in assets. Pretty crazy huh?

I've been calling this for exactly one year and as far as I'm concerned this FDA merger filing just put the icing on my 1.5 year long, DD cake.