Under the Radar Developments at INSM


JPM Healthcare Conference

The following quote regarding INSM was brought to my attention from a commentor on Seeking Alpha and I figured it’s something that you would be interested in.

“In 2009, we did 51 deals keeping up with our rigorous pace even during the merger planning period. And you can see from this slide, we made significant advancements in continuing that cardiovascular franchise as we move forward with an a-fib product in a relationship with Cardiome and Portola relationship with Factor Xa. So you can see that we continue a strategy of continuing to build the atherosclerosis/cardiovascular franchise.

We also made relationships with glaucoma and for infectious disease, so I think this is a good illustration that we continue to look at relationships and licensing and biotech acquisitions as a key part of the strategy moving forward.

And as we announced the Merck BioVenture in the last year or so, we continue to do acquisitions with Insmed and relationships with Insmed and Avecia for a biological standpoint to build our infrastructure and manufacturing capabilities. So I think this will be an important part of our strategy. It’s not put on the back burner as some have suggested that would take place.” – Merck transcript from JPM Healthcare Conference (PDF)

This conference took place on Jan 12, 2010 and if you look at the trading volume, it’s clear that this statement was the cause of the spike in volume that took place afterwards.

Some Fun Speculative Thoughts

I also checked out the Yahoo boards as there seems to be flurry of activity and speculation so you can also check that out if you wish.

Some are saying that the CEO made a mistake with his statement while he was really referencing the purchase of the INSM follow-on biologics (fob) manufacturing facility for IPLEX. Now while a CEO can easily make a mistake as well, directly referencing INSM two times while using ongoing action words doesn’t seem like much of a mistake.

Besides, Merck holders and not INSM holder should be more worried if the CEO is getting confused with the merger deals that took place. 51 deals in one year is a lot but to specifically mention INSM two times must mean something right?

Low Risk, High Return with INSM

Anyways I don’t want to delve too much into it.

But remember that INSM is still trading at less than its net net value. There hasn’t been much action or news on the progress of the company’s strategic alternatives but that is fine with me. The worst that can happen is basically nothing for a company just sitting on a horde of cash and not doing much. The stupid thing would be to think that just because you have cash, you have to do something. That’s when you start making stupid acquisitions and decisions.

And as I concluded in my previous INSM quarterly analysis, it looks like management has a good handle of cash management and operations.

Disclosure

I own shares of INSM at the time of writing. Maybe it’s time for more?

  • Todd Metheny

    http://www.gurufocus.com/grahamncav.php

    Why doesn’t INSM show up on this list?

  • Derek James

    blatant plagiarism.
    are you one-and-the-same site? different URLs or something.
    hope your (paid) advertisers know this (time waster)

  • @ Derek,
    huh??

  • Vince P

    Wow, look at that pop on some good news just as I fired up the computer to grab a few hundred shares… way to go Jae you have a nice jump on GGWPQ today too.

  • Wow. Can’t complain on a day like this, but just good luck and sitting tight while weak hands threw away their cards.
    INSM test results were positive but there hasn’t been any PR on it. Only a few biotech institutions seem to know about it. I put another order in but don’t want to chase at the moment, as my allocation was filled until the test results came out. I did learn again that even NNWC biotechs with promise are awesome opportunities.

  • Vince P

    What do you think the risk/reward outlook is from here now that INSM is no longer NNWC? I’d like to believe that the cash per share is the downside and with plenty of good news and potential value-unlocking scenarios in the works, INSM could run some more…I’m sure the next few weeks will be very volatile with the upcoming deadlines and I’d like to initiate a position but it’s so hard to determine what is actual news and what is just noise and rumors driving the price around. I must say I know nottthinngg about biotechs

  • I fully expect INSM to run some more. There still have been no press release, it was a sub $1 stock until a couple of days ago which restricts most institutions from buying. Even though INSM is just above NNWC, you are still getting their IPLEX drug and any future prospect for free.

    INSM has a floor of around $0.85 and intrinsic value of at least $2.50.

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