AP story on Insmed's financial success since selling the FOB business to Merck...
Insmed swings to 1Q profit on Merck deal
RICHMOND, Va. (AP) - Insmed Inc. reported a first-quarter profit Wednesday, bolstered by Merck & Co. buying several of the biopharmaceutical company's drug candidates.
In February, Merck said it would pay $130 million to buy a slate of biotech drug candidates and a manufacturing facility from Insmed.
The company earned $117.8 million, or 96 cents per share, compared with a loss of $4.9 million, or 4 cents per share, during the period a year prior. Revenue remained flat at $2.4 million.
The swing to a profit came from the Merck deal, which included Insmed's biosimilar assets. Biosimilars are copies of biotech-based drugs. There is currently no approval process in place in the U.S., though Congress is debating several bills on the issue.
Insmed recorded a pretax gain of $127.8 million in the quarter from sale of assets.
The company, meanwhile, continues developing the muscular dystrophy treatment candidate Iplex.
Shares of Insmed fell 10 cents, or 7.3 percent, to $1.28 in afternoon trading. The stock has traded between 32 cents and $1.52 over the past 52 weeks.