Noise Abatement is Useful for Staying Calm
It's always good to focus on the main event and not the sideshows. One should trust due diligence and facts, and ignore the noise created by cotton candy vendors and hucksters - of which there are many on Wall Street and plying the boards of the Internet.
Nothing material has changed since the approval. The company reported that they were seeking partners and wise investors take them at their word. If you have a novel product, a market and competent execution, you create shareholder value. Often, this takes time and requires patience.
The announcement of the patent for use of Technosphere in treating migraines is evidence that the company intends to extend its novel delivery technology beyond diabetes- as it should.
Alfred Mann is a proven entrepreneur and successful investor. He has made millions building successful companies. He would not have risked a billion dollar investment (of his own money) on Mannkind if he was not highly certain of its potential. Again, when betting on people, the best predictor of future behavior is past behavior-always.
Execution of the final tranche of the Deerfield agreement was reported as it should have been to comply with the SEC regulations. People familiar with the company and its history were not surprised or alarmed since it was pre-planned and well disclosed last year when financing was arranged. A wise company makes sure it has sufficient cash on hand to fund operations until revenues begin ramping up. The expected timeline for that event (commencing marketing and sales) is sometime next year.
The market shortsightedness toward Mannkind is driven by three factors-(1) the number of shares outstanding- this level of dilution was not intended by Mr. Mann, but made necessary when the company encountered strong currents at the FDA and had its plans (and operating costs) extended for several years, (2) the inability of the market to distinguish between the failed Exubera product and Afrezza. Some people have difficulty distinguishing between a Model T and the Tesla Model 3-That's their problem (maybe they should do some research), and (3) There is also skepticism about the company's ability to market and sell the drug (which is precisely why Mannkind has hired Greenhill to solicit and broker partnership offers)-they realize that they (and investors) are better served by finding an experienced partner with a well-oiled infrastructure already in place.
Oddly, outside commentators always seem to think they know more about what a company should do than the people with the facts sitting in the boardroom. My reaction to that is: Seriously???
When opportunity appears, the wise investor takes advantage of it. Then, he/she remains calm and patient. Unfortunately, in today's world, patience is in short supply. People want instant everything. But many worthwhile outcomes take time and are best achieved at their own pace.
GLTA
Chris
