MONMOUTH JUNCTION, N.J.,
July 2, 2012 /PRNewswire/
-- Insmed Incorporated (Nasdaq CM: INSM), a biopharmaceutical
company focused on developing inhaled therapeutics for serious
diseases of the lung, today announced that it has entered into a
loan agreement with Hercules Technology Growth Capital, Inc. (NYSE:
HTGC), a leader in customized debt financing for companies in life
sciences and technology-related markets. Hercules will provide
Insmed with access to a term loan of up to $20 million.
"We project that this loan agreement will extend our cash runway
well into 2014," said Timothy
Whitten, President and Chief Executive Officer of
Insmed. "Our focus remains on the timely generation of
top-line data from our three prioritized ARIKACE® studies, the
CLEAR-108 phase 3 study in cystic fibrosis patients who have
pseudomonas lung infections, the TARGET-NTM phase 2 clinical trial
for patients who have non-TB Mycobacteria lung infections and the
nine month dog toxicity study, all of which are expected to be
announced over the course of 2013 as previously outlined."
The first $10 million of the term
loan was funded at closing, and is repayable in installments over
forty-two months including an initial interest-only period of
twelve months after closing. The interest only period is
extendable to December 31, 2013,
contingent upon completion of certain ARIKACE-related development
milestones. Pursuant to the loan agreement, Insmed issued Hercules
a warrant to purchase 329,932 shares of Insmed common stock at an
exercise price of $2.94 per share.
The remaining $10 million of the term
loan is available at Insmed's option throughout the availability
period, which ends on December 31,
2012. Further information with respect to the loan agreement
with Hercules is contained in a Current Report on Form 8-K filed
today by Insmed with the Securities and Exchange Commission.
About Insmed
Insmed Incorporated is a biopharmaceutical company focused on
the development of innovative inhaled pharmaceuticals for the
site-specific treatment of serious lung diseases. Insmed's
primary focus is on the development of inhaled antibiotic therapy
delivered via proprietary advanced liposomal pulmonary technology
in areas of high unmet need. For more information, please
visit http://www.insmed.com.
About Hercules Technology Growth Capital, Inc.
Hercules Technology Growth Capital (NYSE: HTGC) is a specialty
finance firm providing customized loans to public and private
technology-related companies, including clean technology, life
science and select lower middle market technology companies at all
stages of development. Since inception, Hercules has committed more
than $2.8 billion to over 200
companies and is the lender of choice for entrepreneurs, venture
capital and private equity firms seeking ideal, customized growth
capital financing at all stages of a company's development to
accelerate business growth and reach the next critical milestone.
Hercules common stock trades on the NYSE under the ticker symbol
"HTGC". In addition, the Company's 7.00% Senior Notes due 2019
trade on the NYSE under the symbol "HTGZ". For more information
please visit info@htgc.com, or call 650-289-3060.
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 our financial position,
our estimates regarding our capital requirements and our needs for
additional financing, our ability to access additional funds under
the Hercules loan agreement, results of operations, the status and
the results of pre-clinical studies and clinical trials and
pre-clinical and clinical data described herein, the timing of and
costs associated with pre-clinical studies and clinical trials, the
development of our products, our estimates of the size of the
potential markets for our product candidates, and the business
strategies, plans and objectives of management, 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. Our results
may be affected by such factors as the receipt and timing of U.S.
Food and Drug Administration and other regulatory reviews and
approvals, if at all, competitive developments affecting our
product development, delays in product development or clinical
trials, and patent disputes involving currently developing
products. The risks and uncertainties include, without
limitation, we may experience unexpected regulatory actions, delays
or requests, our future clinical trials may not be successful, we
may be unsuccessful in developing our product candidates or
receiving necessary regulatory approvals, we may experience delays
in our product development or clinical trials, our product
candidates may not prove to be commercially successful, 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, 2011 and
our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2012. Investors 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:
Brian Ritchie – FTI
Consulting
212-850-5683
brian.ritchie@fticonsulting.com
Media Contact:
Irma Gomez-Dib – FTI Consulting
212-850-5761
irma.gomez-dib@fticonsulting.com
SOURCE Insmed Incorporated