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"Is there A Big Pharma "White Knight" In Mannkind's Future?"

Jan. 21, 2011 10:21 AM ETMNKD
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Mannkind's current "cash burn" rate is about $40,000,000 a quarter. The company currently has about $100,000,000 in cash on hand.

Under a worse case scenaio I would think the company would need another another $150 million to operate through Afrezza's approval. Mannkind's CEO, Mr. Al Mann could fund this himself if he chose to do so.

I'm expecting at this point in time that Mannkind will partner or that Mr. Mann will sell the company.

Mr. Mann expected approval and had planned on having a stronger position when bargaining for the terms of a partnership.

Sanofi-Aventis would be my partner of choice. Glaxo would be my second choice.

Sanofi has billions of dollars in cash on hand and could assist with getting Afrezza approved in both the U.S. and Europe. It has spent more than $17 billion on 25 acquisitions over the last two years.

A partnership that would garner Mannkind an up front cash payment in the $200 million range with milestone payments to follow would be reasonable.

In addition to Afrezza Mannkind does have another ten drugs in various stages of development. One of them is a cancer vaccine that shows great promise.

Now is the time for Mannkind's Board of Director to push Mr. Mann to finalize an agreement with one of the "our partners" to which Mr. Mann keeps referring.

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