Insmed Inc (INSM)

[ED20332]

Cash flow positive within a year?


From apenny4em Yahoo Board


Here is something that Dr Allan didn't, and wouldn't say.

Despite exiting short stature, Insmed's revenue from cost recovery/sales DOUBLED quarter over quarter, from $502,000 to $1,100,000.

Insmed's quarterly burn rate would appear to be around $4,500,000.

IF revenues do not increase, Insmed has enough operating cash to see them through to the end of Q3 2008 (possibly Q4 2008).

But what if off-label revenues continue to ramp at the present rate?

We haven't had a full quarter's worth of revenue from the ALS trials in Italy.

Insmed are on track to initiate formal Phase II trials for both MMD and HARS by the end of this year. With HARS alone there are estimated to be 250,000 patients USA/Europe, and for 100,000 of those Iplex is the ONLY long-term treatment available.

Cash at present, say 27m at 4.5m per quarter gives us 6 quarters (from mid-May).

As the revenues continue to ramp, the burn rate will decrease. By the end of Q2, we could be be looking at 24.5m at 3.5m per quarter, giving us 7 further quarters. And so on.

For those who thought that the latest shelf-sale was a desparate measure, perhaps you should think again.
Even without an opt-in, and even without a biotech partnership, I believe that Insmed now has enough cash to see them through to Cash Flow Positive.