There were so many hopes riding on MannKind Corporation (NASDAQ:MNKD)’s milestone payments, and now that the company has announced it to be $1 million, it is yet to be known how the bulls are feeling. The company’s announcement of its Receptor Life sourced milestone payment wasn’t something that could be ignored, but the bulls were definitely hoping for much more than this. At present, Mannkind Corporation is feeling the burn from cash extinction, and the payment from Receptor Life did bring in some relief, but for how long?
A rain of respite for Mannkind Corporation’s cash crunch
Cash is definitely the blood of any business and in the midst of something that seems like cash crunch, milestone payments do look like the rain of respite. Even though this isn’t the amount that will allow the company to keep functioning till the end of 2017, but on the positive side, it indicates that the deal is at least moving somewhere.
Ever since the company announced the deal with Receptor Life in early 2016, there hasn’t been much talk around it, except for these milestone payments. With the closing of 2016, came the news, this company was desperately waiting for. However, for the payment to be credited into Mannkind Corporation’s account there may be some meaningful wait as well.
The Lost Respect
Those who have been following this company know that this announcement I nothing but a way to fetch for itself, the little bit of respect that it is getting from the market. If reports are to be believed, the company has been spending exorbitant amounts on weekly basis (as close to $2 million), on account of marketing expenses and sales reps. In such a scenario, Mannkind Corporation’s milestone payment seems like an expense of just a day or two.
This company has definitely more to it and it needs to earn the respect and faith from the streets. As of now, there isn’t anything special that they can claim of.
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