My thoughts on what matters to MNK, page-16

I believe trying to estimate the quantum of upfront cash to be offered in the potential MNK partnership is a waste of time. We simply do not know and there are too many variables to consider, most of which are not known to the general public.

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


Would be interested to see what others for and against arguements other posters may have.

I personally believe the share of the NPV has always been and will be the most difficult hurdle to pass.

But with minimal capital outlay required by MNK to complete these two trials, MsB are in a better position than in the past to retain a large portion of the NPV.

I believe if MNK sign on they would have little at risk if these programs fail, other than their upfront payment. Their capital commitment kicks in when these programs clear their phase 3 trials and obtain FDA marketing approval.

Again views from both sides are welcome, and keeping on topic would be greatly appreciated.