Insmed Incorporated Reports Fourth Quarter and Year-end Financial Results
RICHMOND, Va.--(BW HealthWire)--Jan. 30, 2002--Insmed Incorporated (Nasdaq: INSM - news) today announced financial results for the fourth quarter and year ended December 31, 2001.
Fourth Quarter Results
Research and development expense increased from $7.1 million in the quarter ended December 31, 2000 to $8.9 million in the quarter ended December 31, 2001, reflecting additional expenses related to the comprehensive clinical trial programs in progress for both INS-1 and SomatoKine® in 2001. General and administrative expense decreased from $1.9 million during the quarter ended December 31, 2000 to $1.4 million during the quarter ended December 31, 2001. Insmed also reported $51.3 million in cash, cash equivalents and marketable securities as of December 31, 2001.
The net loss in the fourth quarter of 2001 was $9.9 million or $0.30 per share, compared with a net loss of $7.9 million or $0.26 per share, in the fourth quarter of 2000.
Year-End Results
Research and development expense increased from $21.6 million for the year ended December 31, 2000 to $35.5 million for the year ended December 31, 2001, reflecting expenses related to the comprehensive clinical trial program underway for both of the Company's product candidates. General and administrative expense decreased from $6.0 million for the year ended December 31, 2000 to $4.9 million for the year ended December 31, 2001.
Insmed reported a net loss for the year ended December 31, 2001 of $37.2 million ($1.13 per share) compared with a net loss of $79.9 million ($4.36 per share) for the year ended December 31, 2000. The 2000 net loss included the one-time write-off of purchased research and development of $50.4 million associated with the acquisition of Celtrix Pharmaceuticals.
Conference Call
The Company will host a conference call on Thursday, January 31, 2002, at 8:00 a.m. Eastern Time (7 a.m. Central Time). To participate in the conference call dial 877-709-5340, password: INSMED. A live audio feed of the webcast can be accessed through the Investor Relations link on the Company's website: www.insmed.com.
About Insmed Incorporated
Insmed Incorporated is a biopharmaceutical company focused on the development of drug candidates for the treatment of type 2 diabetes and other metabolic and endocrine disorders associated with insulin resistance. The Company's lead product candidate, INS-1, is an orally active small molecule that restores insulin sensitivity to tissue. The Company is developing INS-1 for the treatment of type 2 diabetes and polycystic ovary syndrome, a significant women's health disorder. In conjunction to INS-1, the Company is developing SomatoKine® a recombinant human protein that is targeted towards the management of both type 1 and type 2 diabetics who are less sensitive to insulin therapy. Further information is available at www.insmed.com.
Statements included within this press release, which are not historical in nature, constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from those described herein. Risks and uncertainties include: product candidates may fail in the clinic or may not be successfully marketed; lack of financial resources to complete development of clinical candidates; and competing products.
INSMED INCORPORATED
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
2001 2000
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Assets
Current assets:
Cash, cash equivalents and
marketable securities $ 51,250 $ 83,083
Accounts receivable and
other assets 3,799 1,537
-------- ---------
Total current assets 55,049 84,620
Goodwill and other assets 16,557 18,098
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Total assets $ 71,606 $ 102,718
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Liabilities and stockholders'
equity
Current liabilities $ 10,256 $ 4,138
Deferred revenue 1,655 1,798
Total stockholders' equity 59,695 96,782
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Total liabilities and
stockholders' equity $ 71,606 $ 102,718
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INSMED INCORPORATED
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
---------------- -----------------
2001 2000 2001 2000
---- ---- ----- ----
(unaudited)
Revenues $ 61 $ 7 $ 296 $ 60
Operating expenses:
Research and development 8,947 7,090 35,506 21,608
General and administrative 1,352 1,886 4,881 5,989
Purchased research and
development - - - 50,434
Non-cash stock compensation - - 95 3,564
------- ----- ------ -------
Total operating expenses 10,299 8,976 40,482 81,595
------- ----- ------ -------
Operating loss (10,238) (8,969) (40,186) (81,535)
Interest income 326 1,069 3,017 1,873
------- ----- ------ -------
Loss before income taxes (9,912) (7,900) (37,169) (79,662)
Income tax expense - - - 200
------- ----- ------ -------
Net loss $(9,912) $(7,900) $(37,169) $(79,862)
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Basic and diluted net
loss per share $ (0.30) $ (0.26) $ (1.13) $ (4.36)
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Shares used in computing
basic and diluted net loss
per share 32,918 30,857 32,871 18,319
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Contact:
Insmed Incorporated, Richmond
Kevin P. Tully, 804/565-3051
investors@insmed.com |
