Insmed Inc (INSM)

[wjlknew]

In my opinion, INSM is the partner that matters least. All DNA has to do is stay abreast of ALS results and then (assuming the results are positive) either opt-in for half the cost and half the proceeds, or take out INSM altogether ... which would probably be cheaper than opt-in ... and reap ALL the rewards.

Or, DNA could support TRCA taking INSM out and then deal with TRCA for ALS (and diabetes) per their existing license agreements.

Let's face it, INSM is the weak leg of this trilogy. INSM has only one strong suit ... the ability to manufacture Iplex. When (not IF) DNA finds a way to work around that, INSM is road kill. That's why I think either DNA (or probably TRCA as DNA's surrogate) is acquiring effective control of INSM as we speak. Remember the INSM execs extending their golden parachute to cover them six months BEFORE a change of control, in addition to one year after?

Disclaimer: All the above is assuming Iplex proves effective for indications other than short stature, and assuming the INSM strategy is not to putter and sputter with phase I and II trials until the patents expire ... which I seriously doubt they can do.