Seeking Alpha

Sanofi, MannKind reach licensing agreement for Afrezza insulin

  • Sanofi (NYSE:SNY) and MannKind (NASDAQ:MNKD) have agreed to a worldwide licensing deal to develop and market inhaled insulin therapy Afrezza for adults with diabetes.
  • Under the terms of the agreement, MannKind will receive an upfront payment of $150M and potential milestone payments of up to $775M.
  • Sanofi and MannKind will share profits and losses on a global basis, with Sanofi retaining 65% and MannKind receiving 35%.
  • The two companies plan to launch the drug in the U.S. in the first quarter of 2015.
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Comments (37)
  • Erbois
    , contributor
    Comments (224) | Send Message
     
    Bravo "Psycho Analyst", you nailed it!
    11 Aug 2014, 03:51 AM Reply Like
  • vanebfbc
    , contributor
    Comments (134) | Send Message
     
    For those who wonders, here's it:
    http://seekingalpha.co...

     

    Great prediction and good analysis, definitely worth a read!
    11 Aug 2014, 04:40 AM Reply Like
  • DrGarnicus
    , contributor
    Comments (107) | Send Message
     
    Damn straight he nailed it!
    11 Aug 2014, 10:39 AM Reply Like
  • wildpig
    , contributor
    Comments (89) | Send Message
     
    how sweet it is,,, long time coming
    11 Aug 2014, 03:52 AM Reply Like
  • 12120341
    , contributor
    Comments (339) | Send Message
     
    To the moon, mnkd!
    11 Aug 2014, 04:25 AM Reply Like
  • TruetoMNKD
    , contributor
    Comments (20) | Send Message
     
    Yes, well done PA! You called it.
    11 Aug 2014, 04:52 AM Reply Like
  • PICOLOMINI
    , contributor
    Comments (988) | Send Message
     
    Short announcement seems to reflect that MNKD was bargaining from a position of strength.
    11 Aug 2014, 05:21 AM Reply Like
  • Michael Collins
    , contributor
    Comments (389) | Send Message
     
    Wow. Well done "Pscho Analyst"..not only did you nail the outcome but you correctly named the suitor. Impressive.

     

    definitely following him from now on.
    11 Aug 2014, 06:04 AM Reply Like
  • Robert Sacher
    , contributor
    Comments (1809) | Send Message
     
    PA is a woman.

     

    :)
    11 Aug 2014, 08:28 AM Reply Like
  • DrGarnicus
    , contributor
    Comments (107) | Send Message
     
    And now we know the rest of the story!
    11 Aug 2014, 10:39 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (698) | Send Message
     
    The agreement is not what I waited for, Sanofi clearly dictated the agreement, 65% v. 35% profits?!? C'mon MNKD. Come to think about it, the risk/reward profile was not really worth it, only if you managed to get the whole position under $4 (my average $6). I'll offload my whole long position today, clearly in the green, but not as much as I expected for. Slightly disappointed.
    11 Aug 2014, 06:12 AM Reply Like
  • 12120341
    , contributor
    Comments (339) | Send Message
     
    They are paying almost 1B for the RIGHTS to sell afrezza. Mnkd profits from manufacturing afrezza and gets 35% royalties plus mnkd has technosphere which is where the real money is. It is an excellent agreement.
    11 Aug 2014, 06:19 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (698) | Send Message
     
    Yeah, but the share price doesn't reflect it, already under $10 pre-market. I should have sold it at $11 back in March/April and used the profits somewhere else. $20 share price was actually just speculation, stupid me.
    11 Aug 2014, 06:38 AM Reply Like
  • Black Gold
    , contributor
    Comments (693) | Send Message
     
    Partnership is excellent for MNKD but the terms of the deal seem pretty bad. Only 1/3 of the profits AND losses for supposedly such a revolutionary product? Seems like another sell the news event when the hype is gone.
    11 Aug 2014, 07:23 AM Reply Like
  • Erbois
    , contributor
    Comments (224) | Send Message
     
    Sellinpanic & Black Gold>> Do you work for thestreet? or Adumb Frankenstein is your mate?
    Please go ahead and short $MNKD :-)
    11 Aug 2014, 07:40 AM Reply Like
  • C D
    , contributor
    Comments (155) | Send Message
     
    I agree I think Sellinpanic & Black Gold work for the street..
    11 Aug 2014, 08:01 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (698) | Send Message
     
    Erbois & C D,

     

    Please THINK before you spit stupid commentary. Where did you read I'm short or is it that you can't read? I don't know about Black Gold, but I've been MNKD long for close to two years increasing my position steadily. The reaction of the share price is a disappointment for me, however good the deal is for MNKD. You honestly think I'm happy with a $10-$11 share price with the risks involved in a biotech-company?
    11 Aug 2014, 08:53 AM Reply Like
  • 28244843
    , contributor
    Comments (2) | Send Message
     
    Exactly. afrezza is the tip of the iceburg. Technosphere will revolutionize the drug delivery system, across the board!
    11 Aug 2014, 09:21 AM Reply Like
  • Sellinpanic
    , contributor
    Comments (698) | Send Message
     
    @28244843

     

    Sure, if you are prepared to be long MNKD for the next 5-10 years. Despite the Technosphere the actual drugs delivered with it need to go through FDA approval and clinical trials. Good Luck with that!

     

    A straightforward acquisition would've been the best option including the rights for Technosphere delivery mechanism. Now MNKD shareholders risk for more dilution for cash in order to develop new drugs for the Technosphere. So I'm out, sold my whole position, got my profit and looking for other investment opportunities. Thank you!
    11 Aug 2014, 10:01 AM Reply Like
  • Erbois
    , contributor
    Comments (224) | Send Message
     
    Sellinpanic>> "sold my whole position, got my profit"
    If I were you, I will go short, to profit both ways. If it will not go up, then it must go down!
    11 Aug 2014, 10:07 AM Reply Like
  • Robert Sacher
    , contributor
    Comments (1809) | Send Message
     
    sellinpanic,

     

    What is your averaged p/s on MNKD?
    11 Aug 2014, 01:53 PM Reply Like
  • Robert Sacher
    , contributor
    Comments (1809) | Send Message
     
    Black Gold,

     

    I respectfully have a difference of opinion with you in that I see almost a billion dollars in payments to come along with 35% of the profits as being a very reasonable deal for MannKind.

     

    Basically, all the financial effort that MannKind put into Afrezza up to this point will be returned to the company along with 35% of all the money that Afrezza will earn in the marketplace.

     

    Now, we look forward to additional partnerships for other products that can be delivered through Technospere.

     

    This is a good deal.

     

    RS
    11 Aug 2014, 01:56 PM Reply Like
  • John Kastanes
    , contributor
    Comments (1185) | Send Message
     
    Poor Jason Karp ;)
    11 Aug 2014, 06:28 AM Reply Like
  • drew111
    , contributor
    Comments (509) | Send Message
     
    Shockingly, Adam F. published another hit piece at 6:49am.
    11 Aug 2014, 08:07 AM Reply Like
  • Erbois
    , contributor
    Comments (224) | Send Message
     
    drew11>> He has to, to help his Hedge Fund masters cover a bit, otherwise he will be without a job next month!

     

    BTW: http://bit.ly/1AyUk2e
    11 Aug 2014, 08:14 AM Reply Like
  • pilot fish
    , contributor
    Comments (146) | Send Message
     
    Quote the Raven attack article in 5----4----3-----2-----
    11 Aug 2014, 08:19 AM Reply Like
  • stk28097
    , contributor
    Comments (203) | Send Message
     
    SNY is a beast. They are investing in some of the most state of the art companies out there REGN, UNIS, MNKD and they were so a head of the curve when they tried to buy ILMN (Which I'm up 300% on since they walked away from buying.)
    11 Aug 2014, 08:24 AM Reply Like
  • retroaspect
    , contributor
    Comments (14) | Send Message
     
    So does this mean that dilution is out of the question? Can they handle production startwith the 150m upfront payment?
    11 Aug 2014, 09:10 AM Reply Like
  • Jason Z. Wu
    , contributor
    Comments (301) | Send Message
     
    If I read it right, SNY spent less than $1 bln for 2/3 of the co?
    11 Aug 2014, 09:12 AM Reply Like
  • MoMoInvestor
    , contributor
    Comments (128) | Send Message
     
    That's the trouble... the market cap as reported on SA is over 3 Billion... does this deal support that market cap.... I'm not sure it does... it would depend on what else is in the Mannkind pipeline... unfortunately, I'm not knowledgeable enough about that subject to comment. GLTA
    11 Aug 2014, 09:29 AM Reply Like
  • Erbois
    , contributor
    Comments (224) | Send Message
     
    Jason Z. Wu>> If you think $SNY got a better deal, then why not buy $SNY instead?
    "If I read it right": I think you did not read at all, or don't know how too. And unfortunately I am not one of those guys who provide free education :-(
    11 Aug 2014, 10:11 AM Reply Like
  • Robert Sacher
    , contributor
    Comments (1809) | Send Message
     
    Jason,

     

    Respectfully, you are mistaken. SNY spent almost a billion dollars for the rights to market one product, Afrezza, from MannKind. MannKind's patented Technosphere technology which is the "brains" behind Afrezza is not part of the deal. MannKind will find additional partners to market additional drugs using MannKind's technology.

     

    Best wishes,
    RS
    11 Aug 2014, 10:40 AM Reply Like
  • Jason Z. Wu
    , contributor
    Comments (301) | Send Message
     
    Hey Bro, how about you get an education to learn how to be "civil"?
    12 Aug 2014, 08:46 AM Reply Like
  • Jason Z. Wu
    , contributor
    Comments (301) | Send Message
     
    hmm... thank you Mr. Market for the free education, but for others, the education may not be so "free"::((
    14 Aug 2014, 08:30 AM Reply Like
  • Duaper
    , contributor
    Comment (1) | Send Message
     
    Big News
    11 Aug 2014, 09:20 AM Reply Like
  • gcar21
    , contributor
    Comments (2) | Send Message
     
    Great day for MNKD! PPS of $30 coming shortly once new PPS targets come out and launch of Afrezza in a few months.
    11 Aug 2014, 09:21 AM Reply Like
  • seeking betta
    , contributor
    Comments (303) | Send Message
     
    All speculation - is Mann is selling the product to San? is that a profit center? No one knows the ultimate sales potential - nor the costs involved. So 35%, with no sales overhead, could be huge. Plus if they Make margin on the manufacturing? Just saying, full of unknowns. I am gonna sit on my warrants for a yr, see what shakes out.
    11 Aug 2014, 10:44 AM Reply Like
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