Insmed Inc (INSM)

[rstor1]

abby,

+++bottom line if insmed partners, there is less revenue coming to the company in the next 2-3 years than if they were to go it alone+++

That statement needs to be qualified:
- How expensive will it be to run a sales force only pushing one product vs. leveraging a potential partner's in-place sales force
- How effectively will Insmed be able to negotiate reinbusement rates vs. a potoential partner with experience in this area.
- How effective will Insmed's slaes force be vs a potential partner's

And these questions don't even touch on a very fundamental one:
In order to build a sales force Insmed needs to raise cash, which means a dilution of current shareholders. My guess is that the sales force/marketing will burn up about 15-20 million that we would not otherwise have to spend.

THis means that, even if all the items above are equal, the current shareholders' share of the profits are going to be cut by ~10% by the start-up of the sales team.

On balance, long term, you can make the case that it makes sense not to partner any indication. But the stars need to align, and Insmed needs to demostrate aptitude in a lot of areas where they have no relevant institutional experience so far, in order for that to work out.

Regards,
Bob