Insmed, Inc. (NASDAQ:INSM)

CAPS Rating: 2 out of 5

Insmed Incorporated, a biopharmaceutical company, is focused on developing and commercializing novel, targeted inhalation therapies.

Recs

2
Player Avatar zzlangerhans (99.85) Submitted: 7/15/2013 5:16:23 PM : Underperform Start Price: $10.83 INSM Score: -25.01

Interestingly, I didn't even have enough time to register my negative feelings about Insmed's valuation before the company rushed to concur with me by arranging a 60M dilutive financing even though they had 82M in the bank and no debt as of the end of Q1. Looks to me like a company with experience reinventing themselves setting up for their next incarnation after the fizzling of Arikace.

Remember this is the same Insmed that traded below 3 in early 2012 after Arikace was placed on a clinical hold due to concerns from a rat inhalation carcinogenicity study. I bought 5000 shares of the stock near the low, and exerted huge self-control to wait for the high 6's to sell. That $20000 profit was one of my largest from a single trade. The stock rewarded my apparent wisdom by going on to highs near 14, so now I can remember the $35000 I left on the table with the $20000 I made. It wouldn't sting so much except that my losses continue to number far fewer than gains numerically, yet due to poor buy/sell decision-making my overall trading profits remain anemic.

Regardless of my personal annoyance with Insmed and its flighty traders, I see the market cap over 300M excessive given the unresolved carcinogenicity concerns, the weak results of CLEAR-108 which met the primary endpoint in name only, and the questionable commercial prospects of an antibiotic for non-tuberculous mycobacterial infection even if the results of TARGET-NTM and a future phase III trial are positive.

Member Avatar jad9000 (< 20) Submitted: 7/16/2013 10:28:12 AM
Recs: 0

There are no carcinogenicity concerns and virtually every analyst covering the company sees NTM, if approved, as a home run. Oh, by the way, it's also been fast tracked by the FDA and given QDIP status - which isn't easy to get - because of the acute need and non-existence of any alternative. If you read the release part of the use of proceeds is to accelerate the approval process in both the EMEA and here, set up manufacturing and distribution and get to market sooner than later. Sorry you left $35,000 on the table.

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