3SOF

Thanks for your information and analysis 

I've been reading more and more information on INSM and TRCA and my conclusion is that there isn't enough information available to judge if INSM will be a great long term investment or not.

I need to know more about the commercialization process of iPlex. The company estimates it will spend between $20M and $23M with iPlex this year. Now I want to know about timing (when will the drug start selling?), size of the market (websites talk about 60,000 children with GHIS in the US and the EU combined) and the price of the drug.

With the size of the market and the selling price of the drug, we can make some estimates on revenues and eventually, profits.

iPlex's other applications are quite interesting, as Diabetes and Severe Burn Injury, but there can be years from now and their approval by the FDA.

I'll wait for more details at the next conference call, in the meantime, I'll continue holding INSM.

INSM closed below its 50 day moving average, I can't defend it anymore. I'll take about a 23% loss on INSM around today's open.

I will also sell GIGM with a 66% profit to balance things.

I need to get more active if I want to beat the market.

I'll continue holding both stocks on the Long Term on Fire Portfolio.

Finally we'll have some more information about INSM and iPlex's commercialization process, as the company will present quarterly results and a conference call next Thursday:

Insmed to Announce 2005 Fourth Quarter and Year End Financial Results; Thursday, March 2

I'll continue holding INSM for the long term.

Which sectors will be hot 2006?

Housing - no!

Oil - it has been very hot in 2004 and 2005 and unlikely hot this year.

TECH - many be.

Bio - likely. Many bio stocks no matter big or small down big last two years and we may see them up big this year.

So far this year, many bio stocks already gained big such as PPHM, AXYX, INSM, NVAX, AVII, HEB, DIET, ELN, BIIB, NXXI, MRK, PFE, ....

Also PCYC, EPIX, etc may gain 100% to 300% later this year. We may be in the early stage of bio boom this year. Let us find out.





INSM had a nice reversal curve.

Quote from: shawFund on February 28, 2006, 02:45:36 AM
Which sectors will be hot 2006?

Housing - no!

Oil - it has been very hot in 2004 and 2005 and unlikely hot this year.

TECH - many be.

Bio - likely. Many bio stocks no matter big or small down big last two years and we may see them up big this year.

So far this year, many bio stocks already gained big such as PPHM, AXYX, INSM, NVAX, AVII, HEB, DIET, ELN, BIIB, NXXI, MRK, PFE, ....

Also PCYC, EPIX, etc may gain 100% to 300% later this year. We may be in the early stage of bio boom this year. Let us find out.

INSM had a nice reversal curve.

I've been thinking about it too shawFund, I think your thinking makes perfect sense, more than that, it is visionary. Even I, that never worried about health issues, I'm starting to go to the doctor, take medicines, make analysis ... the whole world is getting more and more concerned about health issues.

Anyway, coming back to INSM, the company will deliver results tomorrow after the market close. Since this is a long term investment, I'm not thinking about selling before the earnings release.

It will be interesting to hear what the company has to say about future prospects.

I'll continue holding INSM for the long term.

I really feel that INSM will be another VPHM based upon the FDA approval and marketing of IPLEX this year. I would like to hold on to it for LONG TERM. Does anyone else feel INSM has the potention of a multi-bagger in 2006/2007? 

fyi:
AH price down a little bit

Insmed Incorporated Reports Financial Results for the Fourth Quarter and Twelve-Months of 2005
Thursday , March 02, 2006 16:05 ET

RICHMOND, Va., Mar 02, 2006 (BUSINESS WIRE) -- Insmed Incorporated (NASDAQ:INSM), a biopharmaceutical company focused on the development and commercialization of drugs for the treatment of metabolic and endocrine diseases in niche markets with unmet medical needs, today announced its financial results for the three- and twelve-month periods ended December 31, 2005.

Twelve-    Twelve-
                                                    Months     Months
                                                    Ended      Ended
                                                   Dec. 31,   Dec. 31,
$000's (except EPS)             Q4 2005  Q4 2004    2005       2004
                        ---------------------------------------------
Revenues                             24       23      131        137
Net loss                        (12,885)  (5,837) (40,929)   (27,203)
Net cash used in
operations                       6,209    6,452   27,765     24,901
Earnings per share                (0.27)   (0.14)   (0.84)     (0.69)
---------------------------------------------------------------------

Discussion of Revenue and Expense Items

Revenues for the three months ended December 31, 2005 were $24,000 as compared to $23,000 for the same period in 2004, and $131,000 for the twelve months of 2005 as compared to $137,000 for the same period in 2004.

The net loss for the fourth quarter ended December 31, 2005 was $12.9 million or $0.27 per share, as compared to a net loss of $5.8 million or $0.14 per share for the corresponding quarter of 2004. The net loss for the twelve months ended December 31, 2005 was $40.9 million or $0.84 per share as compared to $27.2 million or $0.69 per share for the full year of 2004.

The $7.0 million increase in the net loss for the fourth quarter of 2005, as compared to the same quarter of 2004, was due to the combination of a $6.0 million increase in interest expense, a $0.6 million rise in research and development expenses and a $0.6 million increase in general and administrative expenses, offset by a rise in investment income of $0.2 million,. The $6.0 million rise in interest expense resulted from the March 2005 convertible debt financing and consisted of two components: $5.8 million of non cash expense arising from the accounting treatment of the March 2005 convertible debt financing, which requires that the amortization of the debt discount and deferred offering costs of the financing be accelerated as investors convert the debt into shares, and $0.2 million arising from actual interest paid on the notes. The higher research and development expense was due to increased litigation costs in support of our patent position, while the $0.6 million rise in general and administrative expenses was due mainly to increased external service costs in support of our business. The increased investment income results from the Company having a higher cash balance than the corresponding period of 2004.

The net loss for the twelve months ended December 31, 2005 was $13.7 million higher than the corresponding period for 2004 due to increases of $14.2 million in interest expense and $1.5 million in general and administration expenses, which were partially offset by a reduction of $1.5 million in research and development expenses and a rise in investment income of $0.5 million. The increase in interest expense was due to the March 2005 financing and consisted of $13.1 million of non cash expense relating to the accelerated amortization of the deferred discount and offering costs, and $1.1 of actual interest paid on the notes. The reduction in research and development expenses was principally due to lower development and manufacturing costs for IPLEX(TM), which were partially offset by increased litigation costs in support of our patent position, while the higher general and administrative expenses were due to increased costs associated with financing activities and additional external service costs in support of our business. The rise in interest income was due to the higher cash balance on hand.

As of December 31, 2005, the Company had total cash and cash equivalents of $18.8 million which represents an increase of $9.6 million from December 31, 2004. This increase was mainly due to the generation of $37.4 million from financing activities, offset by the use of $27.8 million in support of our business operations. The $37.4 million of cash from financing activities was generated from a combination of $32.6 million in net proceeds from the March 2005 convertible debt offering, $4.6 million from the exercise of warrants and $0.2 million from a reduction in a restricted letter of credit.

Between January 1, 2006 and February 28, 2006, the Company received additional cash of $8.2 million from the exercise of warrants. As a result of these conversions in the first two months of 2006, the following shares, warrants and convertible debt were outstanding as of February 28, 2006:

-- 76.8 million total shares

-- $6.0 million in convertible debt from the March 2005 financing, convertible at $1.295

-- 6.2 million warrants from the March 2005 financing convertible at $1.36

-- 2.3 million warrants from the November 2004 financing convertible at $1.71, and

-- 1.5 million warrants from the July 2003 financing convertible at $4.10

One question:

  How to valuate the bio stocks with no revenues (basically a pure R&D company)?

  I talked to a fund manager in UBS. He said that this type of company is not qualified to go public.

  The risk of failure is very high.

  May be we can get the company's worth based on the drug market size, and current status.

 

 

http://biz.yahoo.com/bw/060306/20060306005590.html?.v=1

Insmed Incorporated Announces Proposed Public Offering of Common Stock
Monday March 6, 7:21 am ET


RICHMOND, Va.--(BUSINESS WIRE)--March 6, 2006--Insmed (NASDAQ: INSM - News) announced today that it has filed a preliminary prospectus supplement relating to an offering of 20,000,000 shares of its common stock pursuant to a Form S-3 shelf registration statement filed last month with the U.S. Securities and Exchange Commission. Insmed will also grant the underwriters in the offering an option to purchase up to 3,000,000 additional shares of common stock to cover over-allotments, if any. All of the shares are being sold by Insmed.
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Lazard Capital Markets LLC is acting as the sole book-running manager for the offering. C.E. Unterberg, Towbin, LLC is acting as co-manager. A preliminary prospectus supplement has been filed today with the U.S. Securities and Exchange Commission. Any offer of shares of Insmed's common stock will be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering may be obtained by contacting Lazard Capital Markets LLC at 30 Rockefeller Plaza New York, NY 10020 or (212) 632-6000. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

-----------------

BAH!

QuoteInsmed Incorporated Announces Proposed Public Offering of Common Stock ... BAH!

Don't be sad 422fwhp, this is old news:

«Insmed (NASDAQ: INSM - News) announced today that it has filed a preliminary prospectus supplement relating to an offering of 20,000,000 shares of its common stock pursuant to a Form S-3 shelf registration statement filed last month with the U.S. Securities and Exchange Commission.»

The stock already went down because of this exactly 1 month ago.

I still need to listen that conference call, but I'll continue holding INSM for the long term.

Could someone PLEASE tell me what the projected sales of IPLEX and projected expenses for 2006 are supposed to be?  I tried reading the Financials but if I am reading correctly then they stated they will have a few more years of ADDITIONAL LOSSES and that it will take $270 million to bring IPLEX to market.

Any ideas?  Is this worth hanging on to?

.....MARCH 2, 2006 BUSINESS UPDATE.

- INSM is currently transitioning from a product development entity to a fully integrated pharmaceutical/biotec company now that it has its first FDA-approved drug under its belt and a huge pipeline of drugs ranging from diabetes, to Muscular Distrophy, to Cancer.


- The current company focus is in three major areas:

----- Comercialization

----- Manufacturing

-----Clinical Development


- COMERCIALIZATION:

1. iPlex will be comercially launched in June 2006.

2. INSM has hired top talent to assemble an impressive sales and marketing team featuring:

* An average of 17 years of selling experience in the area of pediatric endochrinology ranging from product mamagement, direct sales, clinical management, and business development.

* These new employees were involved in 29 new product launches

* 80% of te new sales force has direct experience with selling growth hormones and pediatric endochrinology.

The new sales force will concentrate their efforts to reach over 400 pediatric endochrinologists in the US. These endochrinologists take care of the majority of iPlex target patients.

The company will be active attending several pediatric endochrinology conferences and symposiums in the next three months.


- MANUFACTURING:

* INSM owns an FDA-approved large manufacturing plant capable of producing product that would generate several hundred million dollars per year.

* Having its own manufacturing plant, affords INSM complete control over quality control and operational flexibility and efficiency.

* INSM is currently working on an iPlex formulation that is stable at room temperature. This product will be launched in a few months. Currently iPlex (and competing prodcts) require that it be stored in a refrigerator prior to use. This will be a huge advantage over existing competitors.

* The Boulder, Colorado plant is fully staffed and oprating 24/7 to stockpile product and to supply quantities required for ongoing clinical trials for other indications like insuline resistance among diabetics, Myotonic Muscular Dysthrophy, and others.


- CLINICAL:

* INSM will be conducting clinical trials to extend its iPlex patient population from 6,000 to over 30,000 patients by addressing other conditions affecting children with IGF-1 defficiency.

* INSM will present results of Phase II clinical trials of iPlex as a medication for severe insulin resistance in diabetics in mid June 2006 at the International Endochrine Society conference. This is a potential multi-billion dollar market since the worldwide diabetic population continues to increase at an accelerated rate. Preliminary indications are very positive.

* INSM will continue clinical trials in all of its drug candidates in its rich iPlex endochrinology pipeline as well as other products in its oncology pipeline.

* INSM has several other drugs in the pipeline in Phases I, II, and III. These drugs range from cancer to diabetes and several illnesses with no known cure or adequate treatment.

Is this company going to be profitable or not?

Is insm making a triple bottom?? bullish?

Quote from: john b mcginnis on March 07, 2006, 03:09:30 PM
Is insm making a triple bottom?? bullish?

I saw that as well, if it breaks below, I will sell!