Replies to post #2705 on Insmed Inc (INSM)

[jellybean]

Your mistake is in calling Ipsen a major European biotech. Look at their products, gingko abstracts, clay residues and out-licensed growth hormone. Somatuline is their first true biotech product. Ipsen is definitely a successful company, but are they a major European biotech?

You and I think that Iplex is a superior product, but there are plenty of people in the world who will weigh the cost/risk/benefit of the two and side with the cheaper drug. There are children who do fine on Increlex. However, the product has limited growth (no pun intended) in other areas. Given that Ipsen is focusing on endocrine irregulaties, Increlex fits in their product line. In addition, Ipsen is battling with Novo in Europe for growth hormone market -- that has to be a tough game as Novo is big and powerful and does not pay royalties to Genentech for sales. What would happen if Novo partnered with Insmed in Europe? Maybe Ipsen needs to have some form of IGF to keep itself in the growth hormone arena.

By the way, have you seen this?

http://www.ll.georgetown.edu/FEDERAL/judicial/fed/opinions/95opinions/95-1424.html

[supacharja]

Taking a somewhat mosaic theory approach to this partnership between Ipsen and TRCA, I imagine, given the obvious DNA/IPSEN/TRCA link that INSM did not and never would entertain partnership talks with Ipsen. Since a partnership with INSM was likely never a potential option for Ipsen, Increlex was the next best thing given their growth disorder focus. Ipsen will now be able to be able to treat those not treatable with Genentech's Nutropin in most of the world. And considering that TRCA mgmt, albeit through deceptive means, has a solid track record for navigating the FDA process, Ipsen now has an opportunity to get Somatuline in experienced hands.

Looking more closely at this deal, it seems to be a win win for both these companies. TRCA gets a shot at getting Somatuline while allowing Ipsen to steer the Increlex ship in most of the world. Ipsen gets an adjunct therapy to Nutropin and hands the Somatuline ball off to a seasoned US counterpart, likely enhancing the chance of approval here.

Good for them. And all this may ultimately have zero impact on INSM. Now if INSM happens to partner with a major pharma with solid marketing prowess for iPlex outside the US, which I'm hoping for, this will be a problem for both Ipsen and TRCA in terms of the Increlex franchise. But other than the cash infusion TRCA just secured, I'm not convinced the Ipsen/TRCA union is a negative for INSM.

If anyone feels differently, I would appreciate hearing those thoughts.