Strategic Acquisition of SC Pharma and Revenue Diversification
"Yeah, you know, I think you hit the nail on the head. Like we, we want to keep building this company, growing a great company, having a great culture. Um we'll have offices in Connecticut, Boston now, and here in California. Um, one of the things we have to do is diversify our revenue streams, right? You come to a quarterly earnings and two thirds of your revenues are from United Therapeutics. And until our pipeline hits, which will start happening pretty quickly now, we were stuck at their mercy. We were looking for an active revenue stream that we could add value to and was already product approved. SC Pharma popped up, and they were short on cash and capabilities. We believe that combining what we built on Fresza with what they have, where we go with our strategy, is going to turn one plus one into three or four."
— Mike Castana
The CEO emphasizes the strategic rationale behind acquiring SC Pharma to diversify revenue away from heavy reliance on United Therapeutics. By integrating SC Pharma’s cash-starved but approved product with Mankind’s existing strengths, the company aims to create outsized combined value and reduce regulatory and commercial risks in the near to medium term.
Company CommentaryBullish
High ConvictionScore: 7.5
Company Opinion •The Motley Fool • 12 days ago
UT Partnership and IPF Catalyst
"Yeah, so I think when you look back, one of the key decisions we made back in 2018 was to license Taibaso DPI to United Therapeutics. At that point we were in a cash crunch. The board said, "Hey, you can't keep spending money on R&D on a Fresa. You got to pick something." And so we ran two trials. One was a phase one on Taibaso and one was a four-week study on a Fresa. And if you ask me, both were home runs. It was the first time in a hundred years that a meal time insulin beat another meal time insulin in a head-to-head trial. On Taibaso we showed we could dose three times higher than United Therapeutics could with tolerability and safety and so that turned into a licensing deal that provided a royalty stream which today is basically what our market cap is."
— Mike Castana
The CEO discusses a pivotal 2018 licensing decision with United Therapeutics that rescued the company during a cash crunch. The successful head-to-head trial not only validated their technology but also created a sustainable royalty stream, forming a key catalyst for future upside—especially as they advance their IPF program.
Company CommentaryBullish
High ConvictionScore: 7.8
Company Opinion •The Motley Fool • 12 days ago