Insmed Inc (INSM)

[rstor1]

Conversation with Insmed

Thanks for posting. THat was a nice recap. However,

+++We had around $30 million in cash in Nov., are burning through $2 million per month things change when we start booking sales in April.+++

This is misleading. They will need to hire, train, and pay a sales staff. They will need to engage in marketing activities (sponsor medical education events, produce and distribute marketing materials, etc.) They will need to gear up for and start stockpiling commercial scale quatities of iPlex. I guarantee you that the burn will shoot up. Maybe that's the line they are throwing out there, so the undrwriter doesn't feel they have Allan by the balls, but they need to do a financing, and I hope they do it before the Q4 CC. The new burn will be disclosed at that point, and the sp will tank in expectation of the financing.

Also,

+++7. Very confident about litigation, +++

I would not expect them to be any less so publicly, but I have not seen anything to make me think that this is not a coin toss once the judge gets it. There were many posts on the YMB about the disallowance of a TRO. That motion was rendered moot by 1. the fact that TRCA was having its PDUFA first and 2. the Merck ruling in the spring which reaffirmed the fact that materials used in clinical trials were exempt form patent restrictions. Now that we are commercial, it's a whole different ballgame.

Regards,
Bob