Insmed Inc (INSM)

[coinstarz]

TRCA Financials 4Q 2005 and 1Q 2006.

In the last year 4th Q, TRCA had The net loss for the fourth quarter was $14.4 million, or $0.46 per share based on 31.5 million weighted-average shares outstanding, compared with a net loss of $11.2 million, or $0.46 per share based on 24.1 million weighted-average shares outstanding, for the fourth quarter of 2004. Research and development expenses for the fourth quarter decreased to $4.7 million from $7.6 million for the prior year fourth quarter, due primarily to reduced GMP manufacturing activities that were required to support our NDA filing in early 2005.

In the 1st Q 2006, TRCA had the net loss for the first quarter of 2006 was $14.3 million, or $0.40 per share, compared with a net loss of $9.1 million, or $0.32 per share, for the first quarter of 2005. Research and development expenses for the first quarter of 2006 were $4.6 million, compared with $4.9 million for the first quarter of 2005..

Question I like to ask is why TRCA had the same loss (oh, 0.1M less) as 4th Q 2005? In the 4th Q 2005, Tercica was preparing Increlex launch and making payment to CBM for Increlex production. They hired sales people and promoted Increlex. Therefore, TRCA had higher loss in 4th Q. However, in the 1st Q 2006, TRCA didn't pay much to CBM why R&D was the same? Why didn't TRCA lower its loss in 1Q 2006 comparing to 4th Q 2005? I guess TRCA has spend huge amount of money to take doctors and patients out for dinner, however, the results were terrible with $85,000 revenue. I guess those patients didn't like twice shots a day. Also, TRCA was giving drug away for free to compete with iPlex.

Well, my point is Increlex is very hard to sell. Side-effects and twice-shot-a-day keep doctors from prescribing the drug. Again, with only 90 patients using Increlex as of today, TRCA has long way to go to reach more patients. Those 300 patients are not fully committed to Increlex.

To be fair...Insmed had The net loss for the first quarter ended March 31, 2006 was $13.4 million; The net loss for the fourth quarter ended December 31, 2005 was $12.9 million...