Insmed Inc (INSM)

[wjlknew]

My previous post was written before I had a chance to read Insmed's latest 10-Q (May 10, 2007). That quarterly report contains the detailed agreement and permanent injunction resulting from the recent legal unpleasantries. Having read the entire agreement, the first paragraph in my previous post (regarding a possible partnership with Cephalon) is wrong. Even that is not a possibility. The relevant sentence from the agreement reads: "It is understood and agreed that Insmed shall not enter into any agreement with a Third Party to develop or commercialize a Product for any Permitted Indication prior to the expiration of the Opt-In Period for such Permitted Indication."

Genentech has opt-in rights for ALS.

The only real bone left for Insmed is generic biologics, and I still think Insmed doesn't have the wherewithal to play successfully in that game ... if the game is played at all.

I really think there is only one outcome to save this mess, and that is for Tercica to acquire Insmed ... by whatever means necessary. I would even be surprised if that is not already in progress.