Replies to post #4720 on Insmed Inc (INSM)

[recurveman]

Zake
I read the agreement and I concluded that after the commercialization of an indication if TRCA or DNA has opted in they receive 50% of the revenues and INSM receives 50%. If it's TRCA then DNA receives a royalty but if it's DNA then TRCA receives no royalty. Did I come to the wrong conclusion?

[wjlknew]

zake1, better read it again.

If either DNA or TRCA opt in they split the costs 50/50 with INSM, but they also split the profits 50/50. They also would gain "commercial control".

That sure sounds like a partner ... a controlling partner ... to me.

[windyducat]

What I read into the agreement is Insmed will do what it does best which is research and development and Tercica/Genentech and DNA will do what they do best which is commercialization. It think is a great strategy...establish a business framework/partnership to leverage the differentiating strengths of both, and share the cost and profit. This also helps enable one of Insmed's core values which to bring the science to people who really need it. I think they struck a great deal in terms of who and what Insmeds wants to be and their mission! I think the market will respond favorably...I expect a small increase tomorrow....they are now a viable and solvent business!!!!!!!! Great buy under $2 IMO