Insmed Incorporated has a market cap of $84.8 million; its shares were traded at around $3.36 with and P/S ratio of 19.2.
Highlight of Business Operations:Net loss attributable to common stockholders for the three months ended June 30, 2012 was $9.7 million, (or $0.39 per common share – basic and diluted), compared to net loss of $10.0 million, (or $0.40 per common share – basic and diluted), for the three months ended June 30, 2011. The $0.3 million improvement in the net loss was due to a $1.5 million reduction in operating expenses, which was partially offset by a $1.0 million decline in IPLEX revenue and a $0.2 million reduction in investment income.
Revenues for the three months ended June 30, 2012 were zero, as compared to $1.0 million for the three months ended June 30, 2011. The $1.0 million decrease was due to the elimination of IPLEX EAP revenues following the depletion of IPLEX inventory in December 2011.
Net loss attributable to common stockholders for the six months ended June 30, 2012 was $16.5 million, (or $0.67 per common share – basic and diluted), compared to net loss of $26.1 million, (or $1.19 per common share – basic and diluted), for the six months ended June 30, 2011. The $9.6 million reduction in the net loss from 2011 to 2012 was primarily due to the $9.2 million non-cash charge for the beneficial conversion feature of the Series B Preferred Stock incurred in the first quarter of 2011, which increased net loss attributable to holders of shares of our common stock and, in turn, reduced our loss per common stock on a basic and diluted basis by $0.48. The charge represents the $1.00 difference between the conversion price of the Series B Preferred Stock of $7.10 per share and its carrying value of $6.10 per share. The carrying value of the Series B Preferred Stock was based on its fair value at issuance, which was estimated using the common stock price reduced for a lack of marketability between the issuance date and the anticipated date of conversion. Additionally, a reduction in operating expenses of $3.2 million was partially offset by revenue reduction of $2.6 million and a decline in investment income of $0.3 million.
Revenues for the six months ended June 30, 2012 were zero, as compared to $2.6 million for the six months ended June 30, 2011. The $2.6 million decrease was due to the elimination of $2.3 million of IPLEX EAP revenues following the depletion of IPLEX inventory in December 2011 and the receipt of $0.3 million in license fees for our CISPLATIN lipid complex in 2011, as compared to zero in the current year.
We have funded our operations to date through public and private placements of debt and equity securities and the proceeds from the sale of our FOB platform to Merck. We will continue to incur losses to the extent we expand our research and development and we do not expect material revenues for at least the next several years. Furthermore, revenues from our EAP in Italy associated with cost recovery were eliminated by the end of the fourth quarter of 2011, when our current IPLEX inventory, which had been fully expensed, was depleted. As of June 30, 2012, we had total cash, cash equivalents, short-term investments, and certificate of deposits on hand of $75.2 million, consisting of $73.1 million in cash and short-term investments, including the net $9.8 million funding from HTGC, and $2.1 million in a certificate of deposit, as compared to $78.4 million of cash on hand as of December 31, 2011. The $3.2 million decrease in total cash was due primarily to the $12.9 million funding of operations which consists mainly of research and development activities, partially offset by the net $9.8 million of borrowing from HTGC in June 2012.
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