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Monday, February 13, 2006
INSM $2.3...BEST VALUE AMONG ALL BIOTECS
Insmed (Nasdaq: INSM) reported financial results and provided an important business update on March 2, 2006 AH.
The financial results showed that cash burn in 2005 was essentially about the same as in 2004. The increased reported loss was due to interest paid as a result of warrants that have been excercised in 2005. As with any biotec company in a developmental stage the los was expected but actually lower in total cash burn as most investors had expected.
INSM at the time of the CC had $27M in cash. The expected cash burn through the end of 2006 is $45 to $48M and includes funds needed for the launch of iPlex. The company expects to fund the extra cash through 2nd half iPlex revenues. This means that there is no immediate need to activate the $75M shelf recently registered.
......BUSINESS UPDATE.
The business update provided by company management was excellent and upbeat. Here is a summary:
- INSM is currently transitioning from a product development entity to a fully integrated pharmaceutical/biotec company now that it has its first FDA-approved drug under its belt and a huge pipeline of drugs ranging from diabetes, to Muscular Distrophy, to Cancer.
- The current company focus is in three major areas:
----- Comercialization
----- Manufacturing
-----Clinical Development
- COMERCIALIZATION:
1. iPlex will be comercially launched in June 2006.
2. INSM has hired top talent to assemble an impressive sales and marketing team featuring:
* An average of 17 years of selling experience in the area of pediatric endochrinology ranging from product mamagement, direct sales, clinical management, and business development.
* These new employees were involved in 29 new product launches
* 80% of te new sales force has direct experience with selling growth hormones and pediatric endochrinology.
The new sales force will concentrate their efforts to reach over 400 pediatric endochrinologists in the US. These endochrinologists take care of the majority of iPlex target patients.
The company will be active attending several pediatric endochrinology conferences and symposiums in the next three months.
- MANUFACTURING:
* INSM owns an FDA-approved large manufacturing plant capable of producing product that would generate several hundred million dollars per year.
* Having its own manufacturing plant, affords INSM complete control over quality control and operational flexibility and efficiency.
* INSM is currently working on an iPlex formulation that is stable at room temperature. This product will be launched in a few months. Currently iPlex (and competing prodcts) require that it be stored in a refrigerator prior to use. This will be a huge advantage over existing competitors.
* The Boulder, Colorado plant is fully staffed and oprating 24/7 to stockpile product and to supply quantities required for ongoing clinical trials for other indications like insuline resistance among diabetics, Myotonic Muscular Dysthrophy, and others.
- CLINICAL:
* INSM will be conducting clinical trials to extend its iPlex patient population from 6,000 to over 30,000 patients by addressing other conditions affecting children with IGF-1 defficiency.
* INSM will present results of Phase II clinical trials of iPlex as a medication for severe insulin resistance in diabetics in mid June 2006 at the International Endochrine Society conference. This is a potential multi-billion dollar market since the worldwide diabetic population continues to increase at an accelerated rate. Preliminary indications are very positive.
* INSM will continue clinical trials in all of its drug candidates in its rich iPlex endochrinology pipeline as well as other products in its oncology pipeline.
* INSM will continue to educate the medical and patient population about the benefits of iPlex by attending 7 shows/conferences in the next 3 months. In one of those shows INSM was specifically requested to present a formal paper on iPlex clinical results for IGF-1 defficiency.
INSM has several other drugs in the pipeline in Phases I, II, and III. These drugs range from cancer to diabetes and several illnesses with no known cure or adequate treatment.
Take a look at the current status of INSM rich drug pipeline:
http://www.insmed.com/secondary.asp?title=Overview§ion=productpipeline
HERE IS THE LINK FOR INSM BUSINESS UPDATE:
http://www.insmed.com/secondary.asp?title=Webcasts§ion=ir
All in all, INSM is currently an extremely ondervalued pharma company with about 78M shares O/S. Even if the full $75 shelf was fully used, the company still has a market cap of less than $200M. INSM is the only pharma company with an FDA-approved drug with a market cap of less than $200M.
The immediate and long-term future will be very exciting for INSM and its shareholders. I expect that more analysts will start covering INSM, and that institutional buying will accelerate now that many important questions have been answered by company management.
About INSM:
Insmed is a biopharmaceutical company focused on the manufacturing, discovery, and development of drug candidates for the treatment of metabolic diseases and endocrine disorders with unmet medical needs. For more information, please visit www.insmed.com.
*** Always do your own DD and invest at your own risk. For risks and uncertainties always check the latest company 10Q and 10K filings ****
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INSM $2.3...BEST VALUE AMONG ALL BIOTECS
Archives
February 2006
Ya baby!
Middleton & Co. INITIATES STRONG BUY $9
by: ithebioguy (41/M)
Long-Term Sentiment: Strong Buy 03/02/06 05:18 pm
Msg: 72096 of 72097
First Call ALERT - March 2, 2006, 5:15pm:
Private research firm Middleton & Co. initiate coverage on Insmed (INSM) with a STRONG BUY rating and a $9 price target (12-mo).
Nice post from Yahoo board
Re: OFF LABEL: MDs YES MFRs NO
by: emmalm5 (63/M/Louisville, KY)
Long-Term Sentiment: Strong Buy 02/25/06 03:10 pm
Msg: 70002 of 70060
A few paragraphs taken from Richard Russell's Dow Theory Letters:
"If you hold a tangible asset and have no intention of selling it, why drive yourself crazy pricing it all the time.... An investor buys some land or a few outstanding stocks and instead of trading they, he forgets about them. In 10 or twenty years that land or those stocks are worth a fortune. If he, the same investor, had been pricing his items daily, somewhere along the line he would have become uncomfortable or frightened and bailed out.
This of course, shows the great advantage the wealthy individual has over the "little guy." The wealthy investor buys a stock, and it represents only a small fraction of his net worth. In fact, the wealthy investor hardly looks at the stock's fluctuations. The fluctuations don't affect him, they don't really change his total asset position one way or the other.
In other words, the wealthy investor is in a position to hold the stock regardless of market conditions. In the end, the stocks fluctuates, it corrects, it hits new highs, then declines, and over the years the stock hits ridiculous new highs. Finally, on a valuation basis, the investor sells. But only the wealthy investor has been able to hold this stock until the point where it became absurdly overvalued."
Everyone investing in INSM should try to adopt the attitude of the wealthy investor. If you have such a big percentage of your net worth in this company that it's failure will cause you great financial distress you can't act like the "wealthy investor" and you should lighten up to where you can. I have been a Financial Consultant for over 30 years and the first conversation I have with my clients is that they MUST invest like the "wealthy investor" and buy when no one else will, when a stock is getting tanked, and sell when no one wants to when the stock is soaring to absurd valuations. It has worked for me and my clients and will work for everyone but from what I see on this board there are too many "poor investors" who MUST watch every move of the stock. All too many of them will act like the "little guy" and bail out way too soon and remain poor!
Insmed to Announce 2005 Fourth Quarter and Year End Financial Results; Thursday, March 2
via COMTEX
February 23, 2006
RICHMOND, Va., Feb 23, 2006 (BUSINESS WIRE) --
Insmed (NASDAQ:INSM) announced today that it will release 2005 fourth quarter and year end financial results Thursday, March 2, after market close.
The Company will host a conference call on Thursday, March 2 at 4:30 p.m. Eastern Time to discuss operating results for the 2005 fiscal year, and provide a business update.
Interested investors can listen to the call over the internet from Insmed's investor relations website at www.insmed.com or by dialing 800-289-0529 (domestic) or 913-981-5523 (international).
A telephonic replay of the call will be available for one week at 888-203-1112 (domestic) or 719-457-0820 (international), passcode: 4436753. A web replay of the call will be available through the corporate website beginning at 6:00 p.m.
About Insmed Incorporated
Insmed Incorporated is a biopharmaceutical company focused on the development and commercialization of drug candidates for the treatment of metabolic diseases and endocrine disorders with unmet medical needs. For further information about Insmed please visit the company's corporate website at www.insmed.com.
Re: Another SEC filing....GOOD
by: castelllete
Long-Term Sentiment: Strong Buy 02/13/06 09:19 am
Msg: 66549 of 66558
They are investors and they have to show the return on their investment after they sell. They made a handsome 66% profit on their INSM investment...that is good for them.
Now BVP can brag about their investment IQ to lure more investors.
Their shares have gone to longer-term investors not looking for just double-digit gains but for triple-digit gains
Wow! a good post from the yahoo board
Friday Movement Is Irrational
by: thangle9
Long-Term Sentiment: Strong Buy 02/04/06 06:22 pm
Msg: 63256 of 63299
It's interesting that recent events have turned the price of INSM down. If anything, it should be interpreted as positive news.
Why do many investors assume that this registration means that INSM plans to make and distribute this drug alone because we either couldn't find a partner or a distributor? What if these proteins are readily purified in the labs by the Ph.D.'s and technicians? Many basic science labs already have the capacity to do this, just not a license for this particular use. Production has begun -- extensively!
Remember that these shares have not been sold yet, and even if they were, they will be judiciously sold in order not to depress stock value. C'mon, some of you aren't giving enough credit to management. This drug will arrive in the hands of endocrinologists way sooner than you think, because these patients need it. It's not just a matter of stature nor height -- it's their very existence and survival.
Just buy in at a comfortable entry point and let Insmed get this drug to the patients. The worst thing you guys can do for these people is to buy and sell the same day, taking loads of profits that otherwise could be there because new investors can't stomach the risk. That's not investing. We are all, in some ways, "swing traders," but you aren't helping anyone by buying, selling, shorting and running away with the money within hours. That's how to kill a fledging company like Insmed.
Through your DD, you know that Insmed has a good drug that can do so much good for so many people. Please resist the tempation to take your profits and run within the same day; instead, go long, let this company grow and you can still do your day trading activities in a year or two when there's more money, more investors around. TRCA is also a good company, and it has a different drug to help these patients. Totally different mechanism. You can't just -- with good conscience -- endorse here then trash there.
The people who did these research probably didn't even have time to check on the market. Probably, they were too busy with their work and value their hard-earned income too much to do this type of risky investment. They have found something great that opens many opportunities for theraputic applications, and all we have to do is to take some risks, put up a little money and hope that their future is our future and that, like them, we too are in this for the right reasons. Please, please go long.
From yahoo board........ INSM
INSM Investors
by: supacharja 01/30/06 06:59 pm
Msg: 60736 of 60751
I forgot why I stopped visiting this board until I began perusing some of the posts. From posters supposedly sending emails to INSM's IR dept to traders looking at "technical indicators," this board has become unintelligible.
I've been long this Company for a long time. And I have no near to intermediate term plans to relinquish any portion of my INSM holdings.
I have some thoughts for those investors concerned about their INSM investment. First, technical analysis is a waste of time with this Company, as there are esoteric forces currently at work which have been and will affect the share price. Second, the transition from a research to a commercial operation takes time. Essentially INSM was born on Dec. 12, less than 2 months ago. Third, the IR dept won't pander to the small investors sense of anxiety. In fact, doing so would be a disservice to the other investors that presumably hold the other 99.9999% of the shares outstanding (fully diluted that stands at 98 million).
The bottom line is that management is busy building this company. Could they have done some things differently in the past....arguably yes. But realize that this management has succeeded in developing a science that is revolutionary, and which will finally be delivered to the marketplace after many, many years. Ultimately there will be many other uses for iPlex outside of IGFD. Remember that management is not concerned with the short-term movement in the stock price. No management should be...they have a fiduciary responsible to build long-term value. It's taken a long time to get to where we are today....giving the stock a little time to appreciate seems reasonable. For those that invested at higher levels and can give this Company some time, relax. INSM the Company, and stock, will be fine.
From yahoo board........ WARRANTS
INSM warrants
by: sirenebekim (21/M/Tampa, FL)
Long-Term Sentiment: Strong Buy 01/30/06 05:06 pm
Msg: 60700 of 60704
I found myself slaving over the lcd screen trying to find more opportunistic investments such as INSM; I have discovered a few but then I thought to myself... Think about how INSM has acted since FDA approval...
1. Warrents/Conv. are being released, and we even have proof via sec filings. Once these things are done, which should be near( I calculated the time about two weeks ago on this board; research it if your interested) These should be done before the end of FEB.
2. If you look at the chart, INSM is trying its best to rocket, but it is a rocket with a bag of rocks tied to it. The rocks are the warrents/conv plus any downward pressure from previous investors selling off because they have no balls.
3. INSM shot up to 3.2x one day, and I bought more thinking this was it... Nope sure wasn't, but I did not sell my shares yet and a will refuse to sell them untill we see 1.xx which will never happen.
4. INSM has a history. From this history you can predict how the stock will react in the future. INSM SPIKES ON NEWS; retreats, levels, then spikes again. We are in the longest retreat this stock has seen since that wonderful FDA approval for IPLEX.
To sum it all up, buy while you can because we have just seen a very minute peak into the future of this company.
INSM LONG '07
Important Diabetes Gene Discovered
http://diabeticnews.com/
Well I got to remember where I saw this. On the yahoo message board!
Shame on me!
Thanks for the info.
Anyone know if this is true????
JagNotes: INSM to be DOWNGRADED!
Jan 19, 2006 (JAGfn.com via COMTEX) -- Robert W. Baird to initiate coverage of Insmed Inc. (INSM) Friday with a sell recommendation due to valuation concerns.
Their 12 month price target is $3.00.
Source JagNotes.
http://www.jagnotes.com/rumors_body.cfm
We are on fire today!!
Pfizer to Get Full Inhaled Insulin Rights
Friday January 13, 8:32 am ET
By Theresa Agovino, AP Business Writer
Pfizer to Pay Sanofi-Aventis $1.3B for Rights to Inhaled Insulin; Shares Up in Premarket
NEW YORK (AP) -- Pfizer Inc. will pay $1.3 billion to Sanofi-Aventis Group to obtain full worldwide rights to the inhaled insulin the companies developed jointly and were planning to co-market. U.S. regulators are expected to rule upon the drug later this month.
ADVERTISEMENT
Pfizer, the world's biggest drug company with blockbusters such as the cholesterol drug Lipitor, made the announcement late Thursday. Its shares were up 9 cents to $24.67 in premarket trading.
Last September, a U.S. Food and Drug Administration panel voted to recommend inhaled insulin for approval but in October the agency said it wanted to extend its review of the medication, called Exhubera, by three months.
While there is a diabetes epidemic spreading across the country, some analysts had said doctors may be wary of prescribing Exhubera since the long-term effects of inhaling insulin won't be known for several years. Moreover, Merck & Co.'s withdrawal of its pain reliever Vioxx has caused doctors to become cautious of prescribing new drugs.
Pfizer has pledged to continue studying the drug's safety after its approval.
The $1.3 billion also gives Pfizer total ownership of a production plant in Germany the two companies jointly held.
"I think it (Exhubera) will be a billion dollar drug but it will take some time," said Jason Napodano, an analyst at Zacks
Napodano said that Pfizer will have to market the drug extensively to overcome doctor's initial trepidation. Plus, he said patients may be turned off by the inhaler's size. Pfizer said the device is about the size of a hard-shelled eyeglass case.
Napodano expects Exhubera will be approved, although he thinks the FDA may require some additional information or label changes before Pfizer can market it. He doesn't expect Exhubera sales to contribute much to 2006 or 2007 earnings and doesn't think the drug will hit $1 billion in sales until at least 2009.
Still, Napodano said the deal is good news for Pfizer because it needs all the revenue it can muster as several of its drugs will lose patent protection in the next few years.
The agreement ends legal action Pfizer started against Sanofi-Aventis in 2004 after the company was created by a merger. Pfizer had originally been working with Aventis on the drug and said in a lawsuit that the merger constituted a change of control that violated the contract. A U.S. and a German court agreed with Pfizer last year and the two companies have been working on a resolution, Pfizer said.
Pfizer will still pay an undisclosed royalty to Nektar Therapeutics, which makes the inhaling device and will also supply insulin.
Thanks for the info, Bob.
Yes I think the doctor's will monitor both drugs closely and patient input about the safety and dosing concerns will help Iplex prevail.
Can patient's on Increlex be safely and easily switched from Increlex to iPlex once iPlex is on the market??
""For any newly diagnosed child in mid-2006, when we expect both products to
be on the market, however, Increlex use will suffer, in our view, as
physicians are likely to experiment with both agents and will let
patients' families decide""
'''but iPlex's
once-daily dosing regimen, however, remains the most attractive option''''
TRCA: Upgrading to HOLD based on discussions with pediatric endocrinologists
* We spoke to pediatric endocrinologists about their perceptions and
anticipated prescribing patterns of Increlex and Insmed's iPlex over the
next 6-12 months. In total, these physicians treat roughly 2,000 children
with short stature annually
* Take-aways from these interviews suggest that Increlex's 4-5 month head
start over the launch of Insmed's iPlex may be its greatest advantage
* We have included Increlex's first-mover advantage into our model and have
increased our Increlex revenue estimates slightly for 2006-2008
* Physicians appear ready to prescribe Increlex this week and are unlikely
to switch patients to iPlex unless compliance or side effects become an
issue
* For any newly diagnosed child in mid-2006, when we expect both products to
be on the market, however, Increlex use will suffer, in our view, as
physicians are likely to experiment with both agents and will let
patients' families decide
* IPlex's frozen storage requirement was a minor concern to ped/endos with
whom we spoke, as was the volume of iPlex's injection, and may place iPlex
at a slight disadvantage to Increlex for some families, but iPlex's
once-daily dosing regimen, however, remains the most attractive option
Thanks for the info.
Im a little concerned about the short interest increase also.
Hang in there folks
This is a long term hold. Forget about the everyday up's and down"s. Just market makers trying to get it at the lowest price for the future.
Good luck all!
WE HAVE A $30.00 PRICE TARGET FOR 2005...