Retail and Oz, I think we're ready this time.
At the Canacord conference 2 days ago:
-Hyperion - expect the first order shortly (from medical industry), also military is very interested - neither application need end stations
-Merlin - have all the major players in, are shipping it now, will have revenue this quarter. Looking for 3-4 major partners to ramp into high volumes in 2015. TG is indicating this is VERY big.
-PV and Poly are coming back
-reiterated 2016 of $1.50 eps - three drivers: Solar coming back and with Merlin; Hyperion - multiple applications; Sapphire and as a continuing revenue stream
-take a look at the presentation they gave - very impressive, TG was very confident
From the conference call - just went back and read the transcript:
-Cash now $330m, cash at year end $400m - $70m in free cash flow over the next 2 quarters
-Tom made the point that once the orders start flowing from this set of products, cash and profit come quickly.
-Other major companies have to be stunned by the competence of GTAT - taking a shell of a 1.2m sf building 1 year ago, having 1200 construction working involved in fitting it up, getting 2500 sapphire furnaces built and installed, training hundreds of workers and now running 4 shifts 24/7. Who else could have done this.
-There are huge competencies under the surface here and as we go forward it will pay big dividends for GTAT
Sentiment: Strong Buy
Seems like that would give them a leg up.
Except if shorts see the bottom and start buying. Stoch below 20%. They'll be buying tomorrow.
Interesting that China has 114m people with diabetes and it is getting worse. They are now ahead of the US with this problem. You may have a point.
I like the part that says " It is emulating, in essence, what the pancreas does." That and the fact that this is a "platform" drug, which indicates this technology will lead to the development of additional drugs. Sanofi is the perfect partner here and I have a feeling there are other deals in the works with them.
I'm reminded of that with this blurb from WebMD:
WebMD Health News Reviewed by Brunilda Nazario, MD
June 30, 2014 -- Millions of people with type 1 or type 2 diabetes will have another treatment option now that the FDA has approved an inhaled insulin.
Called Afrezza, the rapid-acting insulin is taken before each meal, or soon after starting to eat, with no needles required. Afrezza won't replace the need for injected long-acting insulin for those who need it, though.
WebMD asked diabetes experts about this newest option:
How is Afrezza different than other insulin?
Because it's inhaled, it's absorbed more quickly and in a different way.
"Afrezza is rapidly absorbed from the cells in the lungs [to the blood stream]," says R. Keith Campbell, RPh. He's a certified diabetes educator and distinguished professor emeritus in diabetes care and pharmacotherapy at Washington State University College of Pharmacy. He has studied the drug but has no ties to its developer.
"From the time you inhale it to the time it actually peaks [in the blood] is 15 to 20 minutes," Campbell says. Injected insulin taken before a meal, he says, takes about an hour to peak.
The body also clears Afrezza more quickly than insulin injected at mealtime, says Bruce Bode, MD. He's a diabetes specialist in Atlanta who did a clinical trial funded by MannKind Corporation, the drug’s developer.
Besides its rapid peak, the drug is ''pretty much gone in 2 or 3 hours," Bode says. Rapid-acting injected insulins, he says, usually ''hang around for about 4 hours. Afrezza is fast in, fast out. It is emulating, in essence, what the pancreas does."
How is it taken?
Users place a dose of Afrezza, in powder form, into a small, whistle-sized inhaler. Doses come in a cartridge, and each cartridge contains a single dose.
How does Afrezza work compared to rapid-acting injected insulins?
In a 24-week study, Bode compared Afrezza with a rapid-acting, injected insulin in more than 500 patients with type 1 diab
Agree and note that Afrezza is a platform drug, in that it is a precursor to a whole series of drugs based on this common technology.
This will ultimately be viewed as a terrific deal for MNKD. Over the next few days the shorts will have adjusted their positions and the stock will start back up. WAY oversold technically.
Agree - if a company's stock cannot rise after the FDA approval and Sanofi agreement it might as cease to exist. My bet: it goes up, significantly.
Los Angeles Times, Aug 11, 7:03pm:
"By partnering with Sanofi, MannKind has engaged a proven marketer in the global diabetes arena and one that can leverage the very attractive combination of Afrezza and a long-acting basal insulin," said Keith Markey, an analyst with Griffin Securities. He estimates MannKind's stock will be trading at $16.25 in one year, nearly twice its Monday closing price."
Complex deal - options will convert when the price goes up and that will be dilutive - at the same time MNKD's cost structure drops dramatically as cost shifts to Sanofi. MNKD has got themselves the best possible partner and is now positioned to benefit from the platform technology that they developed.
Listening to the arrangements with Sanofi, the splits, the investments, the incentives, the mutual responsibilities - all makes sense and is a great deal for MNKD.
I belong to an investment group that focuses on China. I asked one of the groups members who is from China and was travelling in China to take a look at JRJC. Here's the net of what she found:
"It is the most prestigious website in China for financial data. Their partners are very big companies and organizations in China."
Sentiment: Strong Buy