Insmed Inc., (NASDAQ: INSM) announced that it has restructured its operations as a result of the litigation settlement with Tercica Inc. (NASDAQ: TRCA) and Genentech Inc. (NYSE: DNA), which was announced yesterday, ending all litigation between the parties.
In its restructuring, Insmed’s sales and marketing group will be eliminated and production at Insmed’s manufacturing site in Boulder, Colorado will be scaled back, to reflect the reduced drug product requirement. The Company anticipates that the current workforce of 150 will be reduced by approximately 34% as a result of the restructure. The projected savings are expected to extend the Company’s current cash reserves and allow the Company to fund its operations into the fourth quarter of 2007. As of December 31, 2006 Insmed had $24.1 million of cash on hand.
Geoffrey Allan Ph. D., President, CEO and Chairman of Insmed, commented: “With the lawsuit behind us we can now focus all our efforts on developing IPLEX for the promising indications we have already identified, and with the License and Development agreement with Tercica and Genentech in place we believe we are well positioned for success.” Dr. Allan added that, “The end of litigation removes a cloud from the Company’s future and the consequent restructuring allows for an improved financial position.”
The Company is presently conducting ongoing clinical research in patients with HIV associated Adipose Redistribution Syndrome (HARS) and Myotonic Muscular Dystrophy (MMD). The clinical trial for HARS is ongoing at the University of California, San Francisco while the MMD clinical trial is ongoing at the University of Rochester. Initial data from both trials is expected to be released in Q2 2007.