Insmed Incorporated Reports Financial Results for Third Quarter
2004-11-08 16:25 (New York)
and First Nine-Months of 2004
RICHMOND, Va.--(BUSINESS WIRE)--Nov. 8, 2004
Insmed Incorporated (NASDAQ: INSM), a developer of
pharmaceutical products for the treatment of metabolic and endocrine
diseases with unmet medical needs, today announced results for the
three and nine months ended September 30, 2004.
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Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
$000's (except EPS) 2004 2003 2004 2003
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Revenues 24 27 114 123
Net loss (7,596) (2,398) (21,366) (7,847)
Net cash used in
operations (6,544) (2,781) (18,449) (8,079)
Loss per share (0.20) (0.06) (0.56) (0.23)
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Discussion of Revenue and Expense Items
Revenues for the three and nine months ended September 30, 2004
were $24,000 and $114,000, respectively, compared with revenues of
$27,000 and $123,000 for the equivalent periods in 2003. Revenues
remained consistent for both the third quarter and the first nine
months of 2004 compared to the corresponding periods of 2003.
The net loss for the three and nine months ended September 30,
2004 was $7.6 million, or $0.20 per share and $21.4 million or $0.56
per share, respectively. For the three months ended September 30,
2004, this represents an increase of $5.2 million or $0.14 per share
from the net loss of $2.4 million, or $0.06 per share for the
corresponding period in 2003. The $5.2 million increase in the net
loss for the quarter compared to the corresponding period in 2003
resulted from a $5.0 million increase in research and development
spending, a $211,000 increase in general and administration costs and
a $19,000 reduction in interest income. The $5.0 million increase in
research and development costs stemmed primarily from the anticipated
increase in manufacturing activity to produce SomatoKine(R) for our
pivotal Phase III trial in the Growth Hormone Insensitivity Syndrome
indication. The $211,000 increase in general and administrative
expenditures is due to the planned additional external service and
personnel costs in support of our business strategy, and the $19,000
reduction in interest income resulted from a combination of reduced
interest rates and a lower cash balance.
For the nine months ended September 30, 2004, the increase in net
loss was $13.5 million or $0.33 per share from the net loss of $7.8
million, or $0.23 per share reported for the same period of 2003. The
$13.5 million increase in our net loss for the first nine months of
2004 as compared with the first nine months of 2003 resulted from a
$12.8 million escalation in research and development costs and a $0.7
million rise in general and administration expenses. The former
resulted from the planned increase in external manufacturing costs to
produce SomatoKine(R) for our clinical trial needs, together with the
pre-manufacturing program at Insmed Therapeutic Proteins, our
development and production facility in Boulder, Colorado, and the
latter due to higher external service and personnel costs in support
of our business. The $59,000 reduction in interest income resulted
from a combination of reduced interest rates and a lower cash balance.
Conference Call
The Company will host a conference call on November 9, 2004 at
8:30 a.m. Eastern Time (7:30 a.m. Central Time). Company management
will conduct the call and will review the financial and operating
results for the third quarter and the Company's current activities and
expectations for the future. To participate in the conference call,
dial 800-289-0572 (domestic) or 913-981-5543 (international). The call
will be webcast live through Insmeds corporate website:
www.insmed.com. A telephonic replay of the call will be available for
one week at 888-203-1112 (domestic) or 719-457-0820 (international)
Passcode: 235319. A web replay of the call will be available through
the corporate website beginning at 1:00p.m.
About Insmed Incorporated
Insmed Incorporated is a biopharmaceutical company focused on the
discovery and development of drug candidates for the treatment of
metabolic diseases and endocrine disorders with unmet medical needs.
For further information about Insmed and SomatoKine(R), please visit
the company's corporate website at www.insmed.com. |
