Replies to post #31 on TRADING BIO

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Author’s reply » Planbee,
IF MannKind paid out $50 million in order to address this debt issue, that could be the final nail in this bloated valuation for MNKD.

They had $107 million in cash at the end of the last Q. If they paid out $50 million that leaves $57 million, now less the same burn rate of last Q being $28 million that leaves $28 million--but then there is a loan convenient that requires MNKD to have on hand at all times $25 million that leaves a whopping $3 million dollars that isn't encumbered.

So basically now that we are two weeks into the four Q, MannKind is out of operating cash.

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Author’s reply » <<<< with the hope that they will earn the next $25M milestone payment for achieving some unspecified (to us) metric. If they don't earn it, they could go to the ATM and sell some shares.>>>

However, if they by some miracle get a $25 million milestone if they follow the same protocol they will carry this milestone as a liability and not operating cash/income. As I've stated many times, the Sanofi deal was a one-way street with all the benefit accruing to Sanofi. There is a simple reason that MNKD doesn't report milestone payments as being a cash asset. Find one other small biotech firm that has gotten milestone payments and see where they place such payments--as for as I've been able to find only MNKD has such filed as a liability. The key is very simple--only MNKD has agreed to a partnership deal where the partner(SNY) is paying the expenses being incurred by the partner(MNKD). SNY is stupid and would ever agree to such without a claw back arrangement locked in for each and every penny they have given or loaned to MNKD. Looked at the very moment that MNKD's stock cratered from the $11.47 high price when the SNY deal was announced--the moment being when MNKD filed their SEC documents outlining the fleece job SNY applied to MNKD. Go back to that day---look at the chart and the stock falling off a cliff, now down to $3.00.

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