Southbird66 Monday, 11/09/15 06:06:05 PM
Re: kugel post# 15932
Post # of 15936
I agree it was an interesting earnings call. All should listen to it. Also agree that there were no real bombshells, but came away with the impression that we are still in good hands and that there are incremental gains being made on all fronts. However, there were three new items of particular interest:
(1) Mannkind will be selling up to 50 million shares directly to Israeli EFTS to provide inventory for those funds. A number wasn't given, but if you do the math based on current market price that's about $120 million cash into the company's balance sheet. Interestingly, under Israeli law, these shares can't be shorted, so will help reduce the pool of shares available to shorts.
(2) If I understood correctly, the CEO said that even under a worst case scenario where Sanofi decides to end the partnership at the end of the year, the company still would have enough funds to continue operations through 2017.
(3) Under the terms of it's contract with Sanofi, even under a "worst case scenario" where Sanofi withdrew early, Mannkind would not have to return the funds advanced by Sanofi ($50 million) for 10 years.
All this seems to put the company's short term finances on a much more even keel and enables them to wether the slow roll-out that has been complicated primarily by the slowness of insurance company coverage expansion.
Also, it was reiterated several times that there is no sign or expectation that Sanofi is looking to pull out, but quite the opposite, i.e., that both companies are working hard in close collaboration to make their joint venture successful. All in all, my confidence in MNKD as a long-term investment rather than a flip has been enhanced.
Those were my main take-aways.
