Insmed Announces Restructure, Settlement Ending IPLEX(TM) Patent Dispute
07 Mars 2007 - 4:51PM
Business Wire
Insmed Inc., (NASDAQ: INSM) announced today that it has
restructured its operations as a result of the litigation
settlement with Tercica Inc. (NASDAQ: TRCA) and Genentech Inc.
(NYSE: DNA), which was announced yesterday, ending all litigation
between the parties. In its restructuring, Insmed�s sales and
marketing group will be eliminated and production at Insmed�s
manufacturing site in Boulder, Colorado will be scaled back, to
reflect the reduced drug product requirement. The Company
anticipates that the current workforce of 150 will be reduced by
approximately 34% as a result of the restructure. The projected
savings are expected to extend the Company�s current cash reserves
and allow the Company to fund its operations into the fourth
quarter of 2007. As of December 31, 2006 Insmed had $24.1 million
of cash on hand. Geoffrey Allan Ph. D., President, CEO and Chairman
of Insmed, commented: �With the lawsuit behind us we can now focus
all our efforts on developing IPLEX for the promising indications
we have already identified, and with the License and Development
agreement with Tercica and Genentech in place we believe we are
well positioned for success.� Dr. Allan added that, �The end of
litigation removes a cloud from the Company�s future and the
consequent restructuring allows for an improved financial
position.� The Company is presently conducting ongoing clinical
research in patients with HIV associated Adipose Redistribution
Syndrome (HARS) and Myotonic Muscular Dystrophy (MMD). The clinical
trial for HARS is ongoing at the University of California, San
Francisco while the MMD clinical trial is ongoing at the University
of Rochester. Initial data from both trials is expected to be
released in Q2 2007. Conference Call Today The Company will host a
conference call on Wednesday, March 7 at 11:00 a.m. (ET) to provide
an update on the litigation with Genentech and Tercica, and other
business details. Among participants on the call will be Geoffrey
Allan, president and CEO of Insmed and Kevin Tully, Executive Vice
President and CFO. Interested investors can listen to the call over
the internet from Insmed's investor relations website at
www.insmed.com or by dialing (888) 802-2225 (domestic) or (913)
312-1268 (international). About Insmed Insmed Inc. is a
biopharmaceutical company focused on the development and
commercialization of drug candidates for the treatment of metabolic
diseases and endocrine disorders with unmet medical needs. For more
information about Insmed or details about the
Insmed-Tercica-Genentech settlement, please visit www.insmed.com.
About IPLEX Insmed�s leading product, IPLEXTM, a complex of
recombinant human IGF-I and its binding protein IGFBP-3, was
approved as an orphan drug by the United States Food and Drug
Administration in December 2005. The drug is being investigated for
various indications with unmet medical needs, including Myotonic
Muscular Dystrophy and HIV associated Adipose Redistribution
Syndrome (HARS). Forward looking statements Statements included
within this press release, which are not historical in nature, may
constitute forward-looking statements for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of
1995. Forward-looking statements in this press release include, but
are not limited to, statements regarding business strategies,
results of operations, financial position, cash flows, financing
plans, competitive positions, growth opportunities for approved or
proposed products, plans and objectives of management. Such
forward-looking statements are subject to numerous risks and
uncertainties, including risks that our product candidates may fail
in clinical trials or may not be successfully marketed, we may lack
financial resources to complete development of product candidates,
we may be unable to raise additional financing necessary to
continue current operations competing products may be more
successful, demand for new pharmaceutical products may decrease and
the biopharmaceutical industry may experience negative market
trends. As a result of these and other risks and uncertainties,
actual results may differ materially from those described in this
press release. For further information with respect to factors that
could cause actual results to differ from expectations, reference
is made to reports filed by the Company with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as
amended. The forward-looking statements made in this release are
made only as of the date hereof and Insmed disclaims any intention
or responsibility for updating predictions or financial guidance
contained in this release.
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