Insmed (NASDAQ:INSM) posted a net loss of $23.2 million, or $0.59 per share, for the second quarter of 2014, compared to a net loss of $8.9 million, or $0.28 per share, in the same period of the prior year. The company's net loss increased because in the year-ago quarter, the company received $11.5 million in other revenue related to a one-time payment for the sale of the company's right to receive future royalties under its license agreement with Premacure (now Shire plc). Higher expenses in the second quarter of 2014 also resulted in widening of net loss.
The company's lead product, ARIKAYCE (inhaled liposomal amikacin), will provide effective treatment to patients battling orphan lung diseases. Currently, amikacin is delivered intravenously, but with ARIKAYCE, it can be delivered directly to the site of disease using an investigational delivery system known as eFlow electronic nebulizer manufactured by PARI Pharma GmbH. The company announced at the time of reporting its second-quarter results that it plans to file a Market Authorization Application ("MAA") with the European Medicines Agency ("EMA") for ARIKAYCE. Will Lewis, president and CEO of Insmed, said, "With the recent regulatory clarity, we are moving forward with preparation for commercialization in Europe while simultaneously advancing our two global NTM studies."
Insmed is planning to raise capital again, after it successfully raised capital amounting to approximately $58 million via a public stock offering at $10.40 per share in July of 2013. The company announced earlier this week that it has priced an offering of 8.9 million shares of its common stock at $11.25 per share. The company intends to use the net proceeds from this offering to fund further clinical development of ARIKAYCE. In my original article, I said that my projected price for the stock was $17.50. It was trading around $10.50 at that time, and crossed $21 after my article was published. Currently, the stock is trading around $13, and I believe it has meaningful upside in the near term.
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