Insmed Inc. (INSM, Financial) filed Quarterly Report for the period ended 2010-03-31.
Insmed Inc. has a market cap of $132.8 million; its shares were traded at around $1.02 with a P/E ratio of 3.7 and P/S ratio of 12.8. INSM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Total revenues for the first quarter ended March 31, 2010 were $1.9 million, as compared to $2.4 million for the corresponding period in 2009. The $441,000 decline in revenue was due to a combination of the receipt of $272,000 in grant revenue for the Myotonic Muscular Dystrophy (“MMD”) trial in the first quarter of 2009, $143,000 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 and $26,000 in lower income from a long standing TGF beta royalty which expired in the current quarter.
Net income for the first quarter of 2010 was $118,000; break even on a per share basis, compared with net income of $117.8 million, or $0.96 per share, reported in the first quarter of 2009. The $117.7 million change in net income 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 and the $441,000 reduction in revenues noted above, these were partially offset by an overall reduction of $7.1 million in operating expenses, a $374,000 improvement in investment income and a $214,000 reduction in interest expense.
The $7.1 million reduction in total expenses resulted from a $5.2 million reduction in research and development expenses (“R&D expenses”) and a $1.9 million decline in selling, general and administrative expenses (“SG&A Expenses”). The lower R&D expenses reflected the elimination of manufacturing expenses following the sale of our FOB assets to Merck in March 2009, while the reduced SG&A expenses were principally due to the recognition of stock compensation expense associated with the restricted stock and restricted stock units that were granted during the first quarter of 2009 in connection with the sale of our FOB assets.
Investment income for the 2010 first quarter was $397,000. This was an increase of $374,000 over the corresponding quarter of 2009; due to a significantly higher invested cash balance. Interest expense of $28,000 was $214,000 lower than the same quarter in 2009 due to a decrease in the debt discount amortization on the 2005 convertible notes, which were fully repaid in March 2010.
As of March 31, 2010, the Company had total cash, cash equivalents and short-term investments on hand of $124.6 million, made up of $103.1 million in short term investments, $19.4 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 $0.3 million increase in cash, cash equivalents and short-term investments was due primarily to a $0.3 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.
Read the The complete Report
Insmed Inc. has a market cap of $132.8 million; its shares were traded at around $1.02 with a P/E ratio of 3.7 and P/S ratio of 12.8. INSM is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On March 31, 2009, we completed the sale of our follow-on biologics (“FOB”) platform to Merck & Co., Inc. (“Merck”) for an aggregate purchase price of $130 million. As part of this transaction, Merck assumed the lease of our Boulder, Colorado-based manufacturing facility (which was also used to manufacture IPLEX™) and acquired ownership of all the equipment in the building. In addition, Merck offered positions to employees at the Boulder facility. After fees, taxes and other expenses related to the transaction, we received total net proceeds of approximately $127 million. In the fourth quarter of 2009 we recorded a $2 million tax refund receivable which increased the after tax proceeds on the sale from $125 million, as reported in the first quarter of 2009, to the $127 million reported in our full year results. The $2.0 million reduction in taxes results from the beneficial impact of the revised tax laws, which came into effect in the fourth quarter of 2009, and allowed the Company to utilize more of its net operating losses (“NOLs”) than previously able under former tax law to reduce the amount of taxes paid on the gain on sale of its FOB business to Merck in March 2009. The company received the full tax refund in April 2010. We retained our Richmond, VA corporate office, which houses our Clinical, Regulatory, Finance, and Administrative functions, in support of the continuing IPLEX™ program.Total revenues for the first quarter ended March 31, 2010 were $1.9 million, as compared to $2.4 million for the corresponding period in 2009. The $441,000 decline in revenue was due to a combination of the receipt of $272,000 in grant revenue for the Myotonic Muscular Dystrophy (“MMD”) trial in the first quarter of 2009, $143,000 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 and $26,000 in lower income from a long standing TGF beta royalty which expired in the current quarter.
Net income for the first quarter of 2010 was $118,000; break even on a per share basis, compared with net income of $117.8 million, or $0.96 per share, reported in the first quarter of 2009. The $117.7 million change in net income 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 and the $441,000 reduction in revenues noted above, these were partially offset by an overall reduction of $7.1 million in operating expenses, a $374,000 improvement in investment income and a $214,000 reduction in interest expense.
The $7.1 million reduction in total expenses resulted from a $5.2 million reduction in research and development expenses (“R&D expenses”) and a $1.9 million decline in selling, general and administrative expenses (“SG&A Expenses”). The lower R&D expenses reflected the elimination of manufacturing expenses following the sale of our FOB assets to Merck in March 2009, while the reduced SG&A expenses were principally due to the recognition of stock compensation expense associated with the restricted stock and restricted stock units that were granted during the first quarter of 2009 in connection with the sale of our FOB assets.
Investment income for the 2010 first quarter was $397,000. This was an increase of $374,000 over the corresponding quarter of 2009; due to a significantly higher invested cash balance. Interest expense of $28,000 was $214,000 lower than the same quarter in 2009 due to a decrease in the debt discount amortization on the 2005 convertible notes, which were fully repaid in March 2010.
As of March 31, 2010, the Company had total cash, cash equivalents and short-term investments on hand of $124.6 million, made up of $103.1 million in short term investments, $19.4 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 $0.3 million increase in cash, cash equivalents and short-term investments was due primarily to a $0.3 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.
Read the The complete Report
