$150 million up front, $175 million in expenses, additional $600 million in milestones and 35% of profits from a GLOBAL partner
Sanofi is huge. They will have the sales force to educate a large number of doctors very quickly.
They have knowledge and experience that will help MNKD get EU approval and make this a world wide drug.
They also have the ability to eventually buy out MNKD should they see fit.
I am impressed.
Now MNKD can start making sales within next six months and let Sanofi concentrate there efforts on Aftezza,
as MNKD starts to develope other uses for technosphere tech. for other inhalable drug applications.
Also MNKD has 5 MILLION METERIC TONS of insulin bought and already paid for, that they will be able to use, once approved, in production of finished product. This plus Sanofi carrying the lions share of commercialization will leave MNKD with insanely attractive profit margins on all sales.
That coupled with milestones payments will leave MNKD with MUCH HIGHER than a 35% royalty.
This deal is extremely sweet short and long term.
I took profits at multiple points and am sitting on heftty profits and still tons of shares I paid $1,94 for.
I am the king of averaging down, but have considered actually raising my average cost.
If people are ignorant enough to push this one down any further I am going to start to add shares back to my portfolio.