RICHMOND, Va., Aug. 4 /PRNewswire-FirstCall/ -- Insmed Inc.
(Nasdaq: INSM), a biopharmaceutical company, today reported results
for the second quarter and six-months ended June 30, 2010.
Total revenues for the second quarter ended June 30, 2010 were $1.9
million, as compared to $3.0
million for the corresponding period in 2009. The
$1.2 million decline in revenue was
due to a combination of $0.9 million
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, the receipt of $0.3 million in grant revenue for the Myotonic
Muscular Dystrophy ("MMD") trial in the second quarter of 2009 and
$30,000 in lower royalty income.
The reduced EAP revenue resulted from the Company's decision
in 2009 to cease patient enrollment in order to preserve inventory
for existing patients, while the lower royalty was due to the
expiration of a long-standing TGF-beta royalty.
Net loss for the second quarter of 2010 was $0.4 million; break even on a per share basis,
compared with a net loss of $1.6
million, or $0.01 per share,
reported in the second quarter of 2009. The $1.2 million change in net loss was due to an
overall reduction of $1.6 million in
operating expenses, a $0.4 million
improvement in investment income and a $0.4
million reduction in interest expense, which was partially
offset by the $1.2 million reduction
in revenues noted above.
The $1.6 million reduction in
total expenses resulted from a $0.6
million reduction in research and development expenses
("R&D expenses") and a $1.0
million decline in selling, general and administrative
expenses ("SG&A Expenses"). The lower R&D expenses
resulted largely from reduced licensing fees, patent costs and
external consulting costs, while the reduced SG&A expenses were
principally due to lower external finance advisory fees, combined
with separation costs incurred in the second quarter of 2009
associated with the departure of our former CEO due to health
reasons.
Investment income for the 2010 second quarter was $0.5 million. This was an increase of
$0.4 million over the corresponding
quarter of 2009 due to increased returns resulting from improved
market conditions. There was no interest expense for the
second quarter of 2010 as compared to $0.4
million for the same quarter in 2009 due to the elimination
of the 2005 convertible notes, which were fully repaid in
March 2010.
Total revenues for the six-months ended June 30, 2010 were $3.8
million, as compared to $5.4
million for the corresponding period in 2009. The
$1.6 million decline in revenue was
due to the same factors which impacted our second quarter 2010
revenues; with a $1.0 decline in EAP
cost recovery, the receipt of $0.5
million in grant revenue for the MMD trial in the first half
of 2009 and $56,000 in lower income
from the expired TGF-beta royalty.
Net loss for the first half of 2010 was $0.3 million; break even on a per share basis,
compared with net income of $116.2
million, or $0.93 per share,
reported in the first half of 2009. The $116.5 million change 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 the $1.6 million reduction in revenues noted above,
which were partially offset by an overall reduction of $8.7 million in operating expenses, an
$0.8 million improvement in
investment income and a $0.6 million
reduction in interest expense.
The $8.7 million reduction in
total expenses resulted from a $5.8
million reduction in R&D expenses and a $2.9 million decline in 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 lower personnel costs
associated with the asset sale to Merck which were partially offset
by the costs associated with the former CEO separation agreement
during the first half of 2009.
Investment income for the first half of 2010 was $0.9 million. This was an increase of
$0.8 million over the corresponding
period of 2009, and was due to improved returns and a significantly
higher cash balance invested for the full six-months of 2010.
The reduction in interest expense for the first half of 2010
as compared to the same period in 2009 was entirely due to the
elimination of the 2005 convertible notes, which were fully repaid
in March 2010.
As of June 30, 2010, the Company
had total cash, cash equivalents and short-term investments on hand
of $126.9 million, comprised of
$113.5 million in short-term
investments, $11.3 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 $2.6 million increase in cash, cash equivalents
and short-term investments was due primarily to the receipt of a
$2.0 million income tax refund and a
$0.6 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 866-783-2141 (U.S. callers)
or 857-350-1600 (international), and provide passcode 25517370.
A live webcast of the call will also be available at:
http://phx.corporate-ir.net/playerlink.zhtml?c=122332&s=wm&e=3220391.
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
11:30 AM ET on August 4th, at 888-286-8010 (U.S. callers) or
617-801-6888 (international), using passcode 15200240.
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
INSMED
INCORPORATED
Consolidated Balance
Sheets
(in thousands, except share and
per share data)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
11,316
|
|
$
12,740
|
|
Short-term
investments
|
|
113,472
|
|
109,441
|
|
Income tax
receivable
|
|
-
|
|
2,023
|
|
Accounts receivable,
net
|
|
190
|
|
245
|
|
Prepaid
expenses
|
|
341
|
|
159
|
|
Total current
assets
|
|
125,319
|
|
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
|
|
$
127,404
|
|
$
126,695
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
912
|
|
$
312
|
|
Accrued project costs
& other
|
|
1,150
|
|
1,150
|
|
Payroll
liabilities
|
|
386
|
|
580
|
|
Interest
payable
|
|
-
|
|
1
|
|
Deferred rent
|
|
132
|
|
132
|
|
Deferred
revenue
|
|
438
|
|
398
|
|
|
|
|
|
|
|
Convertible
debt
|
|
-
|
|
231
|
|
Debt discount
|
|
-
|
|
(23)
|
|
Net convertible
debt
|
|
-
|
|
208
|
|
|
|
|
|
|
|
Total liabilities
|
|
3,018
|
|
2,781
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock; $.01 par value;
authorized shares
500,000,000;
issued and outstanding shares, 130,295,819 in
2009 and
122,494,010 in 2008
|
|
|
|
|
|
|
1,303
|
|
1,302
|
|
Additional paid-in
capital
|
|
350,372
|
|
350,243
|
|
Accumulated
deficit
|
|
(228,336)
|
|
(228,076)
|
|
Accumulated other
comprehensive income:
|
|
|
|
|
|
Unrealized gain on
investment
|
|
1,047
|
|
445
|
|
Net stockholders'
equity
|
|
124,386
|
|
123,914
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
127,404
|
|
$
126,695
|
|
|
|
|
|
|
|
|
INSMED
INCORPORATED
Consolidated Statements of
Operations
(in thousands, except per share
data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months Ended
|
|
|
June 30,
|
June 30,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Royalties
|
$
-
|
$
30
|
$
2
|
$
58
|
|
Grant revenue
|
-
|
272
|
-
|
544
|
|
Other expanded access program
income, net
|
1,864
|
2,738
|
3,791
|
4,808
|
|
Total revenues
|
1,864
|
3,040
|
3,793
|
5,410
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
Research and
development
|
893
|
1,472
|
1,535
|
7,340
|
|
Selling, general and
administrative
|
1,884
|
2,874
|
3,422
|
6,323
|
|
Total expenses
|
2,777
|
4,346
|
4,957
|
13,663
|
|
|
|
|
|
|
|
Operating loss
|
(913)
|
(1,306)
|
(1,164)
|
(8,253)
|
|
|
|
|
|
|
|
Investment income
|
538
|
112
|
935
|
135
|
|
Interest expense
|
-
|
(420)
|
(28)
|
(662)
|
|
Gain on sale of asset,
net
|
-
|
13
|
-
|
127,768
|
|
Income (loss) before
taxes
|
(375)
|
(1,601)
|
(257)
|
118,988
|
|
|
|
|
|
|
|
Income tax expense
|
3
|
-
|
3
|
2,794
|
|
|
|
|
|
|
|
Net (loss) income
|
$
(378)
|
$
(1,601)
|
$
(260)
|
$
116,194
|
|
|
|
|
|
|
|
Basic net (loss) income per
share
|
$
(0.00)
|
$
(0.01)
|
$
(0.00)
|
$
0.93
|
|
|
|
|
|
|
|
Shares used in computing basic
net (loss) income per share
|
130,249
|
126,178
|
130,228
|
124,360
|
|
|
|
|
|
|
|
Diluted net (loss) income per
share
|
$
(0.00)
|
$
(0.01)
|
$
(0.00)
|
$
0.93
|
|
|
|
|
|
|
|
Shares used in computing diluted
net (loss) income per share
|
130,249
|
126,178
|
130,228
|
124,606
|
|
|
|
|
|
|
|
|
INSMED
INCORPORATED
Consolidated Statements of Cash
Flows
(in thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
2010
|
2009
|
|
Operating
activities
|
|
|
|
|
Net income
|
|
$
(260)
|
$
116,194
|
|
Adjustments to reconcile net
income to net cash
|
|
|
|
|
|
(used in) provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
25
|
601
|
|
|
Stock based compensation
expense
|
|
129
|
1,922
|
|
|
Gain on sale of asset,
net
|
|
-
|
(127,768)
|
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
55
|
(89)
|
|
|
Income tax
receivable
|
|
2,023
|
-
|
|
|
Prepaid
expenses
|
|
(182)
|
(71)
|
|
|
Accounts
payable
|
|
600
|
(566)
|
|
|
Accrued project costs
& other
|
|
-
|
(266)
|
|
|
Payroll
liabilities
|
|
(194)
|
582
|
|
|
Income tax
liability
|
|
-
|
1,250
|
|
|
Deferred rent
|
|
-
|
(65)
|
|
|
Deferred
revenue
|
|
40
|
(32)
|
|
|
Restricted stock unit
liability
|
|
-
|
(113)
|
|
|
Asset retirement
obligation
|
|
-
|
(2,217)
|
|
|
Interest
payable
|
|
(1)
|
(10)
|
|
Net cash provided by (used in)
operating activities
|
|
2,235
|
(10,648)
|
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
|
Cash received from asset
sale
|
|
-
|
127,768
|
|
|
Sales of short-term
investments
|
|
69,239
|
-
|
|
|
Purchases of short-term
investments
|
|
(72,668)
|
(87,763)
|
|
Net cash provided by (used in)
investing activities
|
|
(3,429)
|
40,005
|
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from issuance of common
stock
|
|
-
|
580
|
|
Repayment of convertible
notes
|
|
(231)
|
(785)
|
|
Certificate of
deposits
|
|
-
|
10
|
|
Warrants converted into
shares
|
|
-
|
3,493
|
|
Other
|
|
1
|
31
|
|
Net cash provided by (used in)
financing activities
|
|
(230)
|
3,329
|
|
|
|
|
|
|
|
Increase (decrease) in cash and
cash equivalents
|
|
(1,424)
|
32,686
|
|
Cash and cash equivalents at
beginning of period
|
|
12,740
|
2,397
|
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
|
$
11,316
|
$
35,083
|
|
|
|
|
|
|
|
|
Investor Relations
Contact:
|
|
Brian Ritchie - FD
|
|
212-850-5683
|
|
brian.ritchie@fd.com
|
|
|
|
Media Contact:
|
|
Irma Gomez-Dib - FD
|
|
212-850-5761
|
|
irma.gomez-dib@fd.com
|
|
|
SOURCE Insmed Inc.
Copyright g. 4 PR Newswire