Replies to post #24761 on MannKind Corp. (MNKD)

[exwannabe]

Yes, Deerfield could have pulled the trigger w/o the recent extension.

But the deal brought more in that they gave up. The "cost" to Deerfield is that MNKD can burn some more chash. But in return, MNKD brought in $19M from Mann and paid off $5M of future debt. So it was incrementally positive even if MNKD goes BK after burning an extra $15M.

What is there to exploit?

In Q1 the Afrezza sales were $1.2M, yielding a gross margin of $400k. To break even, they have a nut of $20M/q to pay.

Sales need to increase 50x just to hit break even on these numbers (and this ignores the fact that overhead would have to increase to handle this).

Furthermore, if Deerfield did want to make it work, they could let MNKD default and collect the collateral (which is basically the Afrezza commercial enterprise). Why support the other bondholders and common?

[nobodysbusiness]

Surely you jest that Deerfield could have "taken over and sold it off."

Sold what off? A drug that was discarded by Sanofi? A drug that that the company is throwing ever increasing amounts of money at yet which they are struggling to give away?

And technosphere? A technology that has yet to attract any interest from a commercially viable pharma?

The production lines? Production lines using a technology no one wants to make a drug no one wants?

The real estate? A couple of acres of industrial property in beautiful downtown Danbury, Connecticut?

Are you even aware of how much MNKD owes Deerfield?

The Deerfield partners are no doubt on their hands and knees praying that Greenhill can come up with some plan that will rescue the rest of their MNKD fiasco.