Insmed Inc (INSM)

[smallinvestor]

Also INSM stated earlier that their ALS named patient program brought in about $100K/patient/year.
This would give a max. gross revenue of $20MM for 2007 (most probably less due to ramp-up times).
Seemingly Mr.Market agrees. Since the shareprice jumped about 20-30 cents given INSMs 100MM shares.

Let's first assume that your revenue estimate for ALS from Italy is correct, the question is this: since when is 20MM annual revenue only worth 20Million market cap? Last time I checked, biotechs are valued at 4-5 times the potential revenue from indications. So 20Million additional ALS revenue from Italy is worth 80Million market cap...(minus say 20% royalty...that's still 55M market cap)