Why the big drop?, page-28

@larrylovelace

I would point you to the thread "what matters to MNK", specifically the summary of key factors to consider when looking at the MNK discussions

https://hotcopper.com.au/threads/my-thoughts-on-what-matters-to-mnk.3418785/#.WUYhomWPhSU

Extract from the above thread:

However I believe there is merit in lining up factors for and against the partnership being formed.

For:
- MNK need to diversify their revenue stream into the mid/long term
- MSCs could be the next big thing, and their method of action
- MSB have two advanced phase 3 programs (one of these a potential billion dollar blockbuster) that have demonstrated meaningful clinical trial data and are safe
- MNK are committed to regenerative medicine
- MSB need funding
- MNK have established sales and marketing teams and distribution channels
- both programs nearing end of phase 3 recruitment, and as such there is little initial capital outlay to run these two trials to completion
- aGVHD could be FDA approved by mid 2018
- regulatory environment is currently very favourable for MSB in the US, with many benefits not yet realised

Against:
- MNK have high debt levels
- there is no immediate cash flow / sales to MNK from these two programs
- MNK could try grab most of the NPV from these programs


So to answer your question - the share price is a 'nice-to-have' but won't be a significant contributor in terms of the deal being done.


Good luck