) recently announced the pricing of its underwritten public
offerings of its common stock. The company is looking to issue 6
million shares of its common stock at $10.40 per share. The
company expects to raise $62.4 million (gross) through the
offering. After deducting underwriting discounts and commissions,
and other expenses to be paid by Insmed, the net proceed is
expected to be around $58 million. Jul 22, 2013, is the tentative
date for the closure of the offer.
The underwriters have been granted an option to purchase an
additional 0.9 million shares of Insmed's common stock, with a
30-day window to do so.
Net proceeds from the offering will be used by the company to
advance the development of its lead candidate, Arikace, which
includes funding efforts for regulatory approvals and
commercialization. Insmed also intends to use the net proceeds to
ensure adequate supply of Arikace before its launch.
We note that in Apr, 2013, the US Food and Drug Administration
rendered orphan drug designation to Arikace for the treatment of
infections caused by non-tuberculous mycobacteria (NTM). Insmed
is also looking for orphan drug designation of the candidate in
Insmed is currently conducting a phase II study on Arikace in
patients suffering from NTM lung infection. Insmed expects to
report top-line results from the study by the end of this year.
The company also plans to initiate a limited compassionate use
program on the candidate shortly.
On approval, Insmed plans to market the candidate in the US
and then in EU and Canada. If cleared by the regulatory bodies,
Arikace would be the first approved inhaled antibiotic treatment
for NTM lung infections.
Moreover, Arikace is also under phase III development for the
treatment of pseudomonas aeruginosa lung infections in patients
suffering from cystic fibrosis (CF). Insmed expects results from
the study soon. Arikace enjoys orphan drug designation for this
indication both in the US and the EU. The company is currently
enrolling patients for a two-year open-label extension study on
Arikace for the same indication. The extension study is expected
to be completed within Jun 30, 2015.
In Jul 2013, Insmed reported encouraging results from a phase
III study on Arikace for the treatment of CF, when compared to
) TOBI (tobramycin inhalation solution).
Insmed currently carries a Zacks Rank #4 (Sell). Stocks in the
biopharma space, which appear to be more attractive, include
Jazz Pharmaceuticals Public Limited Company
), both with a Zacks Rank #1 (Strong Buy).
INSMED INC (INSM): Free Stock Analysis Report
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