Replies to post #6630 on MannKind Corp. (MNKD)

[jacklondon413]

word. Good article, those are the reasons I am going long here. I am considering adding here in the low 7s or possibly if it dips in 6s

[DownWithPumpers]

Let’s assume that the drug generates $300 million in profits, and because usually at least the first one-third or so of a “milestone” package is meant to be fairly easily attained, let’s also assume that in the process of getting to $300 million, at least a half of that first third is triggered (and, to keep the math simple, we’ll assume the milestone package was for $750 million rather than $775 million).

In this case, MannKind will be receiving it’s cut of the $300 million ($105 million)… plus one-half of one-third of the milestone package (so half of $250 million, or $125 million)… plus the $150 million it received upfront… bringing us to a grand total of $380 million for a drug that generated $300 million in sales!

What a serious joke that article is! They act like 300 million in sales is 100% profit. Probably 300 million in sales generates zero profit after sales, marketing and start-up costs.

It's a real shame that people are publishing such obvious fake stuff to pump this stock

[COO2002COO]

"For example, let’s start small and assume that no milestones are hit and Sanofi generates “just” $50 million worth of profit from Afrezza. In this case, MannKind will get it’s 35% cut ($17.5 million), and when this is combined with the $150 million it got upfront, we’re looking at the company receiving $167.5 million for a product that did $50 million in sales. "

No, we are actually looking at company receiving $167.5 million for a product that did $50 million in profits, NOT sales. Sales amount would be at least $125 million (when assuming the profit margin is 40%).

[redfalcon2]

Thanks Phaeton for that. staying long glty