Insmed Incorporated said that a just-closed public stock offering generated net proceeds of about $235.5 million that will be used for continuing commercialization of Arikayce amikacin liposome inhalation suspension (ALIS). The offering of 9,615,385 shares of common stock at $26.00/share resulted in gross proceeds of about $250 million.
The underwriters of the public offering have 30-day options to purchase up to 1,042,307 additional shares of common stock from the company and up to 400,000 shares of common stock from CEO William Lewis.
Arikayce was approved by the FDA in September 2018 for the treatment of nontuberculous mycobacterial (NTM) lung disease caused by Mycobacterium avium complex (MAC) in a limited population of patients. Insmed said that, in addition to using the proceeds for commercialization and third-party manufacturing of Arikayce, it plans to use the funds for additional clinical trials, including a study of Arikayce in patients with Mycobacterium avium complex (MAC) lung disease.
The company also said that funds would be used for development of other drugs in its pipeline, including INS1009 inhaled treprostinil for the treatment of pulmonary arterial hypertension (PAH). According to the announcement, Insmed may also use proceeds for other purposes, including business expansion in Europe and Japan and “other general corporate purposes, which may include the acquisition or in-license of additional compounds, product candidates, technology or businesses.”
Read the Insmed press release.
