Obviously MNKD is confident with the trial results and FDA approval otherwise they would not have made the financing conditional to the trial results and FDA approval.
This does not imply they are going it alone since the first 3 tranches are up to FDA approval and will be used to refinance the $115M senior note due December 2013. The last tranche is due on sales milestone. Obviously that sales milestone cannot occur unless they launch the product. They can't launch the product unless they partner or create a sales organization themselves which would take 6 to 9 months and another huge debt financing. I believe the last $40M of this financing is for plant expansion.
I think you may have misread the details. Last traunch is upon FDA approval. What is tied to sales/ other milestones is a $90 MM payment from MannKind to Deerfield. I only hope that "payment" is a repayment!
Very good point. An investor can decide whether he likes the financing or not but one thing is certain...this financing does NOT telegraph any concern over Mannkind's ability to execute. The financing is pretty much CONTINGENT upon execution.