Replies to post #24833 on MannKind Corp. (MNKD)

[nobodysbusiness]

A chapter 11 restructuring would basically just turn ownership of the company over to Deerfield since all of MNKD's assets are security for the Deerfield debt.

[exwannabe]

The 2Q2017 is scheduled for release this week, and investors can see progress on revenues and the balance sheet.

The rough numbers are fairly clear though.

For the balance sheet, they issues $11M of shares which offsets much of the $20M loss per q they run. So I guess if it only gets worse by about $5M that would be "good".

For revenue (and gross margin) we have a better picture.

In Q1 Afrezza had $1.2M sales, about $.4M gross margin. Selling off excess bulk insulin brought in $1.8M, but at no margin.

Scripts have perked up so. So let us pencil in $1.6M Afrezza revenue. That would bring total revs to about $3.3M. So here is a decent estimate:.

Rev: $3.4M
COGS: $2.7M
-----------
GM $0.7M

On the overhead side, we know the existing rate. If it stays the same then:

R&D: $3M
SG&A: $15M
Interest: $3M

But many would expect sales costs to go up as they shifted from contract to internal.

So a loss of $20M would be fairly good against this backdrop. But losing $20M on $0.4 of GM does not look rosy.

Now, back to you, what is "progress"? How about a rational definition of what you are looking for that could possibly keep this company in business?