Insmed Inc (INSM)

[ED20332]

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 ****

posted by Irockandyou @ 9:03 PM 0 comments
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