Replies to post #4727 on Insmed Inc (INSM)

[zake1]

Let me provide my take on this..please bear with me..
If the opt-in is exercised by Tercica, Insmed would be reimbursed 50% of its incurred development costs for the indication and further development costs would be shared 50:50. Upon subsequent commercialization, Insmed and Tercica will split profits 50:50 after accounting for relevant expenses including sales-based tiered royalties of 6%-15% to Genentech.

If the opt-in is exercised by Genentech, Insmed would be reimbursed 50% of its incurred development costs for the indication. Subsequent development costs and profits will be split 50:50, but no royalty will be owed to Tercica.

If neither Tercica nor Genentech opts in, Insmed will pay a 4% royalty on all commercial sales of the approved drug to Genentech
First of all either TRCA, or DNA would have to reimburse 50%
of developmental cost..I see this number as being in the
hundred of millions..TRCA does not have that kind of money.
DNA does, but it would be cheaper to buy INSM. They may not
want to do that. So the most likely outcome I see is a 4%
royalty. This also causes DNA to become more like a partner
than an adversary. This provides one side of a bidding war
for either INSM or it's drugs. No where do I see where INSM
is impeded from doing business in Europe with a different
partner.
And did you read this closely?
The Settlement, License and Development Agreement is in effect until the later of 2018 or the expiration of any subsequent Tercica/Genentech issued patents that cover IPLEX or its indications.
Some of these issues end in a couple of years.
regards