Amphastar Pharmaceuticals (AMPH)

[Phaeton]

I can't even guess it would be speculation. I guess we will have to wait and see. Probably nobody we have ever heard of before.

[KingDMC]

$16/$17 Price targets given across the board. Maybe I'll use dry powder and add here to balance out any dips MNKD will take. So I'm with you Phaeton...


http://www.wkrb13.com/markets/347556/amphastar-pharmaceuticals-quiet-period-will-expire-tomorrow-nasdaqamph/

[KingDMC]

Another thing. Why is it that we can't see institutional holders for 90 days? And who do you think some of the big names are behind this besides Deerfield?

[KingDMC]

Good find here man. Very good stuff. Will be interesting come Monday and Tuesday with the back to back earnings calls. Thinking news will come? I'm optimistic, however, I'm getting it through my head that it's possible we don't get news. I will glued in to that call no doubt.

[Phaeton]

I agree. I have done some due diligence of their SEC filings,there are some interesting connections that I think will lead back to Al Mann.

Below is my view of what this is about.

In order to facilitate the acquisition, the Company established a subsidiary in France, Amphastar France Pharmaceuticals SAS, or AFP.

The Company will continue the current site manufacturing activities, which consist of the manufacturing of porcine insulin API and recombinant human insulin API.

As part of the transaction, the Company has entered into various additional agreements, including various supply agreements, as well as the assignment and licensing of patents Merck was operating under at this facility.

In addition, certain existing customer agreements have been assigned to AMPH.

The Company has concluded that the transaction will be accounted for as a business combination. Given that the transaction closed on April 30, 2014

AMPH paid Merck 34,372,000 with 18,352,000 paid at closing and the balance in several payments after December 2014 . The payout back to MRK happens over several years and is finance by sales of Insulin. Now why did Merck sell this plant to AMPH ? The Deal closed April 30, 2014. AMPH Goes Public in June 2014 and the institutional partners are not released to the public for over 90 days. AMPH cuts a deal to supply MNKD insulin on 7/31/2014. Next payment to MRK from AMPH is due December 2014.

MNKD CC call and earnings is on 8/10/2014 The next day
AMPH CC call on 2nd qtr is 8/12/2014

[KingDMC]

Looks like we ought to be buying this. Only thing moving in this deal...

[Phaeton]

Welcome to the Amphastar Pharmaceuticals board.