RICHMOND, Va., May 6 /PRNewswire-FirstCall/ -- Insmed Inc.
(Nasdaq CM: INSM), a biopharmaceutical company, today reported
results for the first quarter ended March
31, 2010.
Total revenues for the first quarter ended March 31, 2010 were $1.9
million, as compared to $2.4
million for the corresponding period in 2009. The
$441,000 decline in revenue was due
to the receipt of $272,000 in grant
revenue for the Myotonic Muscular Dystrophy ("MMD") trial in the
first quarter of 2009, $143,000 in
lower cost recovery in the most recent quarter from our Expanded
Access Program ("EAP") for IPLEX™ in the treatment of Amyotrophic
Lateral Sclerosis ("ALS") in Italy
and $26,000 in lower income from a
long standing TGF-beta royalty which expired in the current
quarter.
Net income for the first quarter of 2010 was $118,000; break even on a per share basis,
compared with net income of $117.8
million, or $0.96 per share,
reported in the first quarter of 2009. The $117.7 million change in net income was primarily
due to the $125.0 million after tax
gain on sale of our follow-on biologics ("FOB") assets to Merck in
March 2009, together with, in the
most recently completed quarter, an overall reduction of
$7.1 million in operating expenses, a
$374,000 improvement in investment
income and a $214,000 reduction in
interest expense, which was partially offset by the $441,000 reduction in revenues noted above.
The $7.1 million reduction in
total expenses resulted from a $5.2
million reduction in research and development expenses
("R&D expenses") and a $1.9
million decline in selling, general and administrative
expenses ("SG&A Expenses"). The lower R&D expenses
reflected the elimination of manufacturing expenses following the
sale of our FOB assets in March 2009,
while the reduced SG&A expenses were principally due to the
recognition of stock compensation expense for the restricted stock
and restricted stock units that occurred during the first quarter
of 2009 in connection with the sale of our FOB assets.
Investment income for the 2010 first quarter was $397,000. This was an increase of $374,000 over the corresponding quarter of 2009;
due to a significantly higher invested cash balance. Interest
expense of $28,000 was $214,000 lower than the same quarter in 2009 due
to a decrease in the debt discount amortization resulting from the
lower average balance of the 2005 convertible notes, which began
repayment in March 2008 and were
fully repaid in March 2010.
As of March 31, 2010, the Company
had total cash, cash equivalents and short-term investments on hand
of $124.6 million, made up of
$103.1 million in short term
investments, $19.4 million in cash
and cash equivalents and $2.1 million
in a certificate of deposit. This compares to $124.3 million as of December 31, 2009. The $0.3 million increase in cash, cash equivalents
and short-term investments was due primarily to a $0.3 million improvement in unrealized gain on
investments, as the net cash produced from operating activities of
$0.2 million was fully offset by the
$0.2 million final payment of our
2005 convertible notes.
Conference Call
To participate in today's live 8:30 AM
ET conference call, please dial 866-783-2145 (U.S. callers)
or 857-350-1604 (international), and provide passcode 75374293.
A live webcast of the call will also be available at:
http://phx.corporate-ir.net/playerlink.zhtml?c=122332&s=wm&e=3029084.
Please allow extra time prior to the webcast to register, download
and install any necessary audio software.
The webcast will be archived for 30 days, and a telephone replay
of the call will be available for seven days, beginning at
12:30 PM ET on May 6th, at 888-286-8010 (U.S. callers) or
617-801-6888 (international), using passcode 34687143.
About Insmed
Insmed Inc. is a biopharmaceutical company with unique protein
development experience and a proprietary protein platform aimed at
niche markets with unmet medical needs. For more information,
please visit http://www.insmed.com.
Forward-Looking Statements
This release contains forward-looking statements which are made
pursuant to provisions of Section 21E of the Securities Exchange
Act of 1934. Investors are cautioned that such statements in this
release, including statements relating to business strategies,
plans and objectives of management and our strategic review
process, constitute forward-looking statements which involve risks
and uncertainties that could cause actual results to differ
materially from those anticipated by the forward-looking
statements. The risks and uncertainties include, without
limitation, we may be unsuccessful in identifying or reaching
agreement with acquisition or merger candidates our expenses may be
higher than anticipated and other risks and challenges detailed in
our filings with the U.S. Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2009. Readers are
cautioned not to place undue reliance on any forward-looking
statements which speak only as of the date of this release.
We undertake no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances that occur after the date of
this release or to reflect the occurrence of unanticipated
events
Investor
Relations Contact:
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Brian
Ritchie - FD
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212-850-5683
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brian.ritchie@fd.com
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Media
Contact:
|
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Irma
Gomez-Dib - FD
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212-850-5761
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irma.gomez-dib@fd.com
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INSMED
INCORPORATED
|
|
Consolidated
Balance Sheets
|
|
(in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
19,364
|
|
$
12,740
|
|
Short-term
investments
|
|
103,147
|
|
109,441
|
|
Income
tax receivable
|
|
2,023
|
|
2,023
|
|
Accounts
receivable, net
|
|
189
|
|
245
|
|
Prepaid
expenses
|
|
82
|
|
159
|
|
Total
current assets
|
|
124,805
|
|
124,608
|
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
|
Certificate
of deposit
|
|
2,085
|
|
2,085
|
|
Deferred
financing costs, net
|
|
-
|
|
2
|
|
Total
long-term assets
|
|
2,085
|
|
2,087
|
|
|
|
|
|
|
|
Total
assets
|
|
$
126,890
|
|
$
126,695
|
|
|
|
|
|
|
|
Liabilities
and stockholders' equity (deficit)
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
433
|
|
$
312
|
|
Accrued
project costs & other
|
|
1,196
|
|
1,150
|
|
Payroll
liabilities
|
|
225
|
|
580
|
|
Interest
payable
|
|
-
|
|
1
|
|
Deferred
rent
|
|
132
|
|
132
|
|
Deferred
revenue
|
|
477
|
|
398
|
|
|
|
|
|
|
|
Convertible
debt
|
|
-
|
|
231
|
|
Debt
discount
|
|
-
|
|
(23)
|
|
Net convertible debt
|
|
-
|
|
208
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,463
|
|
2,781
|
|
|
|
|
|
|
|
Stockholders'
equity (deficit):
|
|
|
|
|
|
Common
stock; $.01 par value; authorized shares
500,000,000; issued and outstanding shares, 130,208,099 in 2009 and
122,494,010 in 2008
|
|
1,302
|
|
1,302
|
|
Additional
paid-in capital
|
|
350,308
|
|
350,243
|
|
Accumulated
deficit
|
|
(227,958)
|
|
(228,076)
|
|
Accumulated
other comprehensive gain:
|
|
|
|
|
|
Unrealized gain on investment
|
|
775
|
|
445
|
|
Net
stockholders' equity (deficit)
|
|
124,427
|
|
123,914
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity (deficit)
|
|
$
126,890
|
|
$
126,695
|
|
|
|
|
|
|
|
|
|
|
INSMED
INCORPORATED
|
|
Consolidated
Statements of Operations
|
|
(in
thousands, except per share data)
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2010
|
2009
|
|
|
|
|
|
Royalties
|
$
2
|
$
28
|
|
Grant
revenue
|
-
|
272
|
|
Other
expanded access program income, net
|
1,927
|
2,070
|
|
Total
revenues
|
1,929
|
2,370
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research
and development
|
642
|
5,868
|
|
Selling,
general and administrative
|
1,538
|
3,449
|
|
Total
expenses
|
2,180
|
9,317
|
|
|
|
|
|
Operating
loss
|
(251)
|
(6,947)
|
|
|
|
|
|
Investment
income
|
397
|
23
|
|
Interest
expense
|
(28)
|
(242)
|
|
Gain on
sale of asset, net
|
-
|
127,755
|
|
Income
before taxes
|
118
|
120,589
|
|
|
|
|
|
Income
tax expense
|
-
|
2,794
|
|
|
|
|
|
Net
income
|
$
118
|
$
117,795
|
|
|
|
|
|
Basic
net income per share
|
$
0.00
|
$
0.96
|
|
|
|
|
|
Shares
used in computing basic net income (loss) per share
|
130,208
|
122,522
|
|
|
|
|
|
Diluted
net income per share
|
$
0.00
|
$
0.96
|
|
|
|
|
|
Shares
used in computing diluted net income per share
|
130,551
|
122,698
|
|
|
|
|
|
|
|
|
INSMED
INCORPORATED
|
|
Consolidated
Statements of Cash Flows
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2010
|
2009
|
|
Operating
activities
|
|
|
|
|
Net
income
|
|
$
118
|
$
117,795
|
|
Adjustments
to reconcile net income to net cash
|
|
|
|
|
|
(used
in) provided by operating activities:
|
|
|
|
|
|
Depreciation
and amortization
|
|
25
|
205
|
|
|
Stock
based compensation expense
|
|
65
|
1,439
|
|
|
Gain on
sale of asset, net
|
|
-
|
(127,755)
|
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
56
|
8
|
|
|
Prepaid
expenses
|
|
77
|
44
|
|
|
Accounts
payable
|
|
121
|
1,390
|
|
|
Accrued
project costs & other
|
|
46
|
(141)
|
|
|
Payroll
liabilities
|
|
(355)
|
4,595
|
|
|
Income
tax liability
|
|
-
|
2,794
|
|
|
Deferred
rent
|
|
-
|
(65)
|
|
|
Deferred
revenue
|
|
79
|
(70)
|
|
|
Restricted
stock unit liability
|
|
-
|
(113)
|
|
|
Asset
retirement obligation
|
|
-
|
(2,217)
|
|
|
Interest
payable
|
|
(1)
|
(3)
|
|
Net cash
provided by (used in) operating activities
|
|
231
|
(2,094)
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Cash
received from asset sale
|
|
-
|
127,755
|
|
|
Sales
of short-term investments
|
|
26,393
|
-
|
|
|
Purchases
of short-term investments
|
|
(19,769)
|
-
|
|
Net cash
provided by investing activities
|
|
6,624
|
127,755
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Repayment
of convertible notes
|
|
(231)
|
(553)
|
|
Certificate
of deposits
|
|
-
|
10
|
|
Other
|
|
-
|
25
|
|
Net cash
used in financing activities
|
|
(231)
|
(518)
|
|
|
|
|
|
|
|
Increase
in cash and cash equivalents
|
|
6,624
|
125,143
|
|
Cash and
cash equivalents at beginning of period
|
|
12,740
|
2,397
|
|
|
|
|
|
|
|
Cash and
cash equivalents at end of period
|
|
$
19,364
|
$
127,540
|
|
|
|
|
|
|
|
Supplemental
information
|
|
|
|
|
|
Cash
paid for interest
|
|
$
3
|
$
38
|
|
|
|
|
|
|
|
|
SOURCE Insmed Inc.