Insmed Inc (INSM)

[wjlknew]

recurveman, great post. A couple of additional thoughts:

"They are now an R&D company with no power because they ceded it to TRCA-DNA. Read the settlement prelminaries. Even after either one would opt to enter into an agreement on any indication they would assume all commercialization powers if or after FDA approval."

This may play out to be the best course for Insmed ... and us. I shudder to think of Insmed's current management making any more ruinous decisions going forward. My thoughts are that Genentech realizes they bet on the wrong horse (Tercica) originally, but they had about as much confidence in Insmed management then as we have now, so they went with Tercica as the better option at the time.

"The BS about a partnership with DNA is not what this is about. It is a dictatorial relationship by any stretch and in the end the arrogance of INSM gave the science away to a predator and a dupe."

I actually feel better with Genentech making the business decisions.

Insmed painted itself into a corner and had to get out any way it could. Insmed can now retire to its lab and Genentech can commercialize whatever of value it develops. The 50/50 split looks fair to me when you consider it applies to costs as well as profits. (Genentech actually has the same arrangement with Tercica but their opt-in period begins AFTER Phase III trials.) The lions share of development costs are from Phase III through manufacture and distribution. If the 50/50 split applied only to profits, it would be an entirely different story. It does look like a partnership. Time will tell if it quacks like one.

I would like to see Genentech go one step furtner and buy half the Colorado facility from Insmed. That would give Genentech more control of commercialization, and would give Insmed needed cash.

I also think Genentech threw Tercica a bone and hopes they will go away eventually. Genentech has always been primarily interested in the diabetes indication, although Genentech's arrangement with Tercica excludes any indication for diseases of the central system also.