Insmed Incorporated Reports Financial Results for the Second Quarter and First Half of 2005
Monday August 8, 4:05 pm ET
RICHMOND, Va.--(BUSINESS WIRE)--Aug. 8, 2005--Insmed Incorporated (NASDAQ: INSM - News), a developer of pharmaceutical products for the treatment of metabolic and endocrine diseases with unmet medical needs, today announced results for the three and six-month period ended June 30, 2005.
$000's (except EPS) Q2 2005 Q2 2004 1st Half 2005 1st Half 2004
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Revenues 28 29 85 90
Net loss (8,524) (9,011) (14,288) (13,770)
Net cash used in
operations 7,394 7,286 13,689 11,905
Earnings per share (0.19) (0.23) (0.32) (0.36)
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Discussion of Revenue and Expense Items
Revenues for the three months ending June 30, 2005 were $28,000 as compared to $29,000 for the equivalent period of 2004, and $85,000 for the for the first half of 2005 compared to $90,000 for the first half of 2004.
The net loss for the second quarter ending June 30, 2005 was $8.5 million or $0.19 per share, as compared to a net loss of $9.0 million or $0.23 per share for the corresponding quarter of 2004. For the six months ending June 30, 2005 the net loss was $14.3 million or $0.32 per share as compared to $13.8 million or $0.36 per share for the first half of 2004.
The $0.5 million reduction in the net loss for the second quarter of 2005, as compared to the same quarter of 2004, was mainly due to a combination of lower operating costs of $2.4 million and an increase in investment income of $0.2 million, offset by a $1.8 million increase in interest expense and a $0.3 million rise in general and administrative expenses. The net operating loss for the six months ending June 30, 2005 was $0.5 million higher than the corresponding period for 2004 due to increases of $2.1 million in interest expense and $0.6 million in general and administration expenses, which were partially offset by a reduction of $2.0 million in operating expenses and a rise in investment income of $0.2 million. The reduction in operating expenses were principally due to lower development and manufacturing costs for SomatoKine® which were partially offset by increased litigation costs in support of our patent position, while the rise in interest expense and investment revenue arises from the convertible debt offering which closed in March 2005. The higher general and administrative expenses are due to increased registration and filing costs associated with the latest financings and additional external service costs in support of our business.
As of June 30, 2005, the Company had total cash and cash equivalents of $28.5 million which represents an increase of $19.2 million from December 31, 2004. This increase is mainly due to the generation of $32.9 million from financing activities, offset by the use of $13.7 million in support of our business operations.
Conference Call
The Company will host a conference call on August 8, 2005 at 4:30 p.m. Eastern Time. Company management will conduct the call and will review the financial and operating results for the second quarter of 2005. To participate in the conference call, dial 800-819-9193 (domestic) or 913-981-4911 (international). The call will be webcast live through Insmed's 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: 8824495 A web replay of the call will be available through the corporate website beginning at 6:00 p.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®, please visit the company's corporate website at www.insmed.com. |
