Insmed Completes Sale of Follow-On Biologics Platform to Merck & Co., Inc. for Gross Proceeds of $130 Million
31 Mars 2009 - 11:06PM
PR Newswire (US)
RICHMOND, Va., March 31 /PRNewswire-FirstCall/ -- Insmed Inc.
(NASDAQ: INSM), a biopharmaceutical company, announced today that
it has successfully closed the sale of all of the Company's assets
related to its follow-on biologics business to a subsidiary of
Merck & Co., Inc. As a result of this closing, Insmed has now
received $130 million, the aggregate purchase price, for the
assets. After fees, taxes and other costs related to the
transaction, net proceeds are expected to be approximately $123
million. As a result of the transaction, Merck purchased all rights
to Insmed's follow-on biologic assets, including INS-19 and INS-20,
as well as control of the Boulder, Colorado-based manufacturing
facility. Merck, through an affiliate, has assumed the facility's
lease and ownership of all the equipment in the building. In
addition, Merck has offered positions to employees of the Boulder
facility. Insmed has retained its Richmond, VA corporate office,
which houses its Clinical, Regulatory, Finance, and Administrative
functions, in support of the continuing IPLEX(TM) program. Insmed
will continue to carefully evaluate potential uses of the proceeds
from the transaction. RBC Capital Markets served as exclusive
financial advisor to Insmed on the transaction and the review of
strategic alternatives, and provided a fairness opinion to the
Company's Board of Directors. McGuire Woods, LLP acted as legal
advisor to Insmed and Fried, Frank, Harris, Shriver & Jacobson
LLP acted as legal advisor to Merck. 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 planned clinical study design,
regulatory and business strategies, plans and objectives of
management and growth opportunities for existing or proposed
products, 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, risks that product candidates may fail in the clinic or
may not be successfully marketed or manufactured, we may lack
financial resources to complete development of product candidates,
the FDA may interpret the results of studies differently than us,
competing products may be more successful, demand for new
pharmaceutical products may decrease, the biopharmaceutical
industry may experience negative market trends, our continuing
efforts to develop IPLEX(TM) may be unsuccessful our common stock
could be delisted from the Nasdaq Capital Market 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, 2007. 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: Brian Ritchie - FD 212-850-5683 Media Contact: Irma
Gomez-Dib - FD 212-850-5761 DATASOURCE: Insmed Inc. CONTACT:
Investor Relations, Brian Ritchie, +1-212-850-5683, , or Media,
Irma Gomez-Dib, +1-212-850-5761, , both of FD Web Site:
http://www.insmed.com/
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