Good post from yahoo board
Re: The reality of Insmed
by: sheepherder1976
Long-Term Sentiment: Strong Buy 04/06/06 12:39 pm
Msg: 83936 of 83956
You really haven't a clue. The key here for INSM is that it hasn't needed a partner. That's not arrogance. It's sound management of company resources. INSM's pps, like most biotech stocks, is going to fluctuate 50% or more between highs and lows on an annual basis. But the key for the investor now is that IPLEX has already passed the riskiest stages of biotech investing and will generate future cashflows for clinical trials of other indications and the pipeline. Raising money is not proving to be tough for INSM, which is great even though it's come at the expense of some dilution. INSM's float and recent offering also allows access to institutional investors. The key for longs is the tremendous upside. By maintaining control of IPLEX, which is approved for GHIS and its lead drug candidate for future indications, the likelihood is INSM's market cap will rise significantly higher. Several investors here have more than doubled their money in the last year and IMO longs who stick with INSM over then next 2-3 years will at least double or triple their money. Most biotech companies that have an FDA approved drug are valued in excess of $500 million and INSM isn't, which presents a great value. When one or more of the IPLEX indications in Phase II goes to Phase III, it will surely go beyond that and with an approval of one of those, INSM may become a billion-dollar biotech. Recall too, that cancer treatments are in the pipeline and that this is similar to how DNA started, with a growth hormone. You can bet your ass INSM management and PJ Young know this and see it as a real possibility for INSM. They have made their bet that early dilution won't effect their equity and options in the long haul and will give INSM money it needs to maintain complete control while leveraging IPLEX and the pipe into a promising future. Anyone who invests in biotech or who understands INSM's science sees the opportunity INSM has to make substantial profits. We have an approved drug with one indication, several potential indications in Phase II, and cancer in the pipe. Only time will tell but there are many solid reasons to be optimistic.
