Replies to post #1574 on Insmed Inc (INSM)

[coinstarz]

Good dig. Another thing is that Tercica spend $83,000 (cost production) to make $85,000 worth of Increlex, how much is gross margin? 2000/85,000 = 2.35%. Tercica is selling drug for loss. They price Increlex too low to compete iPlex. But they suffer the gross margin loss. They forget Insurance is paying for the drug, and it is up to doctors and patients to decide which drug is to use.

If a pharm firm cannot make 20% or 50% gross margin, they cannot survive in the market.

[y3maxx]

Toys & Coin,,,

Can these legal costs actually be accurate?

If they're close It seems TRCA is fighting for its life.

Makes you wonder if TRCA should rather save itself and buy into INSM instead.

[walldiver]

Thanks for the digging. The other big milestone besides the Iplex launch will be the Markman hearing. A favorable Markman hearing for INSM probably means that TRCA would be cut off at the knees. INSM would have both a better product and strong legal standing, meaning that TRCA would probably try for a settlement but be negotiating from a position of weakness. If TRCA tried to take the case to a jury trial after faring poorly in the Markman, it would have two strikes against it (negative Markman and inferior product/more dangerous to children) when gauging jury sentiment.

On the other hand, if things go well for TRCA in the Markman hearing, INSM would still be dealing from a comparatively stronger position because of the superiority of Iplex. INSM could still take it to a jury trial and play the "our product is safer for the children" card. Depending on how the testimony and closing statements go, INSM could negotiate less onerous royalty payments to TRCA.