Insmed, Inc. Earnings Cheat Sheet: Widening Losses Push Company Below Estimates

Insmed, Inc. (NASDAQ:INSM) reported its results for the second quarter. Insmed, Inc. is a biopharmaceutical company focused on the development and commercialization of drugs to treat metabolic diseases and endocrine disorders within niche markets that have unmet medical needs.

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Insmed Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $10 million (40 cents per diluted share) from $378,000 (loss of 3 cents cents per share) in the same quarter a year earlier.

Revenue: Fell 47.5% to $978,000 from the year earlier quarter.

Actual vs. Wall St. Expectations: INSM fell short of the mean analyst estimate of a loss of 33 cents per share.

Quoting Management: “We continue to believe Arikace has the potential to be an important treatment option for CF patients and those suffering from non-tuberculous mycobacterial (NTM) lung disease based on the efficacy and safety data generated from our phase two clinical trial program,” said Timothy Whitten, Insmed’s President and CEO. “We believe that we are taking the appropriate steps with FDA to address the findings from the interim results of our long-term rat inhalation carcinogenicity study that led to the clinical hold. Moreover, after reviewing the data, we believe we have a sound scientific rationale for those findings and look forward to working closely with our experts and with FDA to provide the Agency with all relevant information and data required to expedite their review and evaluation. Depending upon the timing and results of FDA’s review, we are hopeful that we can resume our phase three clinical trial program for Arikace during the fourth quarter of 2011.”

Key Stats:

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 5 cents in the first quarter and by 38 cents in the fourth quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the first quarter, revenue declined 17% to $1.6 million while the figure fell 86.5% in the fourth quarter of the last fiscal year from the year earlier.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Cephalon, Inc. (NASDAQ:CEPH), AVI BioPharma, Inc. (NASDAQ:AVII), Merck & Co., Inc. (NYSE:MRK), Roche Holding Ltd. (RHHBY), Eli Lilly & Co. (NYSE:LLY), Amgen, Inc. (NASDAQ:AMGN), Abbott Laboratories (NYSE:ABT), and Array BioPharma Inc. (NASDAQ:ARRY).

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(Source: Xignite Financials)