Cash rich biotech company after Merck acquired their generic biologics development platform. (1.03$ per share after deal closes)
Lead pipeline drug is a very complex biologic called IPLEX.
Iplex occurs naturally in the human body and can induce muscular, neurological and bone growth.
Iplex has shown effectiveness in short stature in children (fda approved) where it was well tolerated and labeled safe in children.
Iplex is being researched (amongst others) in adult degenerative lethal illnesses like Myotonic Muscular Dystrophy, Amyotrophic Lateral Sclerosis as well as Retinopathy in infants.
ALS and MMD are orphan indications. Iplex is priced at a premium due to high past development cost. Orphan indications are mandatory reimbursed for approved indications and have additional market protection.
Partial building block of Iplex (folding protein igfbp3) has well documented apoptic properties. (ie enhances anti cancer drugs).
Insmed has opt-in agreements with Ipsen ( .fr ) and Genentech (DNA, .us).
Biogenerics platform was sold in february 2009 to Merck for 130 million US dollars (finalizes march '09)
- Total share count for Insmed: 122 million, cash per share from the deal: 1.03$ per share after taxes
( Proceeds for Insmed are 123 million US dollar AFTER taxes )
- Liabilities end of 2008 6~8million, 2.4 million in cash
- Cash burn was about 1 million per month prior to the Merck deal
- Tax los carry forward per dec '07 330 million US dollars.
- 70 staff will go with the Boulder plant to Merck (of total of 90 TOTAL staff for insmed)
- 20 staff will remain at Insmeds Richmond HQ.
- IPLEX pipeline and IP remain
- IPLEX is allready fda approved for short stature in children
- IPLEX is researched in europe in retinophathy in infants.
- IPLEX Myotonic Muscular Dystrophy IIb resuls in Q2 the latest (peak revenue estimates from 600mln-1.3bln)
- MMD iib results triggers optin from ipsen/genentech (50% of all past and future cost in return for 50% of profits)
- ALS (Lou Greg) named patient partner to be announced soon
- Still takeover candidate for Ipsen and/or Genentech