Insmed Reports First Quarter 2017 Financial Results and Provides Business Update
Advancing Toward Top-Line Results from CONVERT Study in 2H 2017
Conference call today at 8:30 AM ET
- Advancing toward top-line data for phase 3 CONVERT study in the second half of 2017. The CONVERT study, or INS-212, is evaluating ARIKAYCE® (liposomal amikacin for inhalation, or LAI) in treatment refractory nontuberculous mycobacteria (NTM) lung disease caused by Mycobacterium avium complex (MAC). The primary efficacy endpoint is the proportion of subjects who achieve culture conversion at Month 6 in the LAI plus multi-drug regimen arm compared to the multi-drug regimen without LAI arm.
- Plan to initiate a phase 2 dose-ranging study of INS1007 in non-cystic fibrosis (non-CF) bronchiectasis in the second half of 2017. INS1007 is a small molecule, oral, reversible inhibitor of dipeptidyl peptidase I (DPP1), an enzyme responsible for activating neutrophil serine proteases in neutrophils when they are formed in the bone marrow.
Insmedis also evaluating the potential of INS1007 in other indications. Plans to initiate any phase 2 studies are pending dialogue with the FDA.
"We remain focused on the execution of the phase 3 CONVERT study of LAI in NTM lung disease and on nonclinical activities for INS1007 as a treatment for non-CF bronchiectasis in preparation for the planned initiation of a phase 2 dose-ranging study," said Will Lewis, president and chief executive officer of Insmed. "As we advance toward our top-line results for the CONVERT study in the second half of 2017, we are also making progress in our regulatory and pre-commercial plans to support LAI. We continue to be committed to a disciplined use of capital while carrying out these important clinical, pre-commercial and operational activities."
First Quarter Financial Results
For the first quarter of 2017, Insmed posted a net loss of $37.4 million, or $0.60 per share, compared with a net loss of $33.5 million, or $0.54 per share, for the first quarter of 2016.
Research and development expenses were $22.3 million for the first quarter of 2017, compared with $20.5 million for the first quarter of 2016. The increase was primarily due to compensation and related expenses in connection with an increase in headcount as compared to the prior year period.
General and administrative expenses for the first quarter of 2017 were $13.7 million, compared with $12.5 million for the first quarter of 2016. The increase was primarily due to higher expenses related to our pre-commercial activities for LAI as compared to the prior year period.
Balance Sheet Highlights and Cash Guidance
As of March 31, 2017, Insmed had cash and cash equivalents of approximately
As a result of these activities, Insmed continues to expect its cash-based operating expenses to be in the range of
Insmed will host a conference call beginning today at 8:30 AM Eastern Time. Shareholders and other interested parties may participate in the conference call by dialing (844) 707-0669 (domestic) or (703) 639-1223 (international) and referencing conference ID number 3999935. The call will also be webcast live on the internet on the Company's website at www.insmed.com.
A replay of the conference call will be accessible approximately two hours after its completion through May 17, 2017 by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and referencing conference ID number 3999935. A webcast of the call will also be archived for 90 days under the Investor Relations section of the Company's website at www.insmed.com.
Non-GAAP Financial Measures
In addition to
Management believes that this non-GAAP financial measure is useful to both management and investors in analyzing our ongoing business and operating performance. Management believes that providing non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view our financial results in the way that management views financial results. Management does not intend the presentation of this non-GAAP financial measure to be considered in isolation or as a substitute for results prepared in accordance with GAAP. In addition, this non-GAAP financial measure may differ from similarly named measures used by other companies.
Insmed Incorporated is a global biopharmaceutical company focused on the unmet needs of patients with rare diseases.
The Company is advancing a global phase 3 clinical study of ARIKAYCE® for adult patients with treatment refractory NTM lung disease caused by MAC, a rare and often chronic infection that is capable of causing irreversible lung damage and can be fatal. There are currently no approved inhaled products specifically indicated for the treatment of refractory NTM lung infections caused by MAC in the United States or European Union (EU).
"Insmed" and "ARIKAYCE" are the Company's trademarks. All other trademarks, trade names or service marks appearing in this press release are the property of their respective owners.
This press release contains forward looking statements. "Forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, are statements that are not historical facts and involve a number of risks and uncertainties. Words herein such as "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "intends," "potential," "continues," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) may identify forward-looking statements.
The forward-looking statements in this press release are based upon the Company's current expectations and beliefs, and involve known and unknown risks, uncertainties and other factors, which may cause the Company's actual results, performance and achievements and the timing of certain events to differ materially from the results, performance, achievements or timing discussed, projected, anticipated or indicated in any forward-looking statements. Such factors include, among others: uncertainties in the research and development of our existing product candidates, including due to delays in patient enrollment or failure of our preclinical studies or clinical trials to satisfy pre-established endpoints; failure to
develop, or to license for development, additional product candidates, including a failure to attract experienced third party collaborators; failure to obtain, or delays in obtaining, regulatory approval from the
The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date of this press release. The Company disclaims any obligation, except as specifically required by law and the rules of the Securities and Exchange Commission, to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Financial Statements and Reconciliation Follow
|Consolidated Statements of Net Loss|
|(in thousands, except per share data)|
| Three Months Ended |
|Research and development||22,254||20,547|
|General and administrative||13,715||12,520|
|Total operating expenses||35,969||33,067|
|Other (expense) income, net||(95||)||15|
|Loss before income taxes||(37,384||)||(33,504||)|
|Income tax provision||30||28|
|Basic and diluted net loss per share||$||(0.60||)||$||(0.54||)|
|Weighted average basic and diluted common shares outstanding||62,041||61,858|
|Consolidated Balance Sheets|
|(in thousands, except par value and share data)|
|As of||As of|
|Cash and cash equivalents||$||125,839||$||162,591|
|Prepaid expenses and other current assets||5,785||5,816|
|Total current assets||131,624||168,407|
|In-process research and development||58,200||58,200|
|Fixed assets, net||9,807||10,020|
|Liabilities and shareholders' equity|
|Other current liabilities||674||728|
|Total current liabilities||23,271||27,989|
|Other long-term liabilities||711||693|
|Common stock, ||621||620|
|Additional paid-in capital||923,760||919,164|
|Accumulated other comprehensive loss||(47||)||(65||)|
|Total shareholders' equity||121,684||154,483|
|Total liabilities and shareholders' equity||$||200,659||$||237,956|
|Reconciliation of GAAP to Non-GAAP Results|
| Three Months Ended |
|Operating expenses reconciliation:|
|Total operating expenses - GAAP||$||35,969||$||33,067|
|Stock-based compensation expense||(4,032||)||(4,219||)|
|Cash-based operating expenses - Non-GAAP||$||31,221||$||28,334|
Laura Perryor Heather Savelle Argot Partners212-600-1902 firstname.lastname@example.org email@example.com
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