insm-20210630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-30739

INSMED INCORPORATED

(Exact name of registrant as specified in its charter)


Virginia						54-1972729
(State or other jurisdiction of incorporation or organization)						(I.R.S. employer identification no.)

700 US Highway 202/206,
Bridgewater, New Jersey						08807
(Address of principal executive offices)						(Zip Code)

(908) 977-9900

(Registrant’s telephone number including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section12(b) of the Act:


Title of each class	Trading symbols	Name of each exchange on which registered
Common stock, par value $0.01 per share	INSM	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer x						Accelerated filer o

Non-accelerated filer o						Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of August 2, 2021, there were 115,246,666 shares of the registrant’s common stock outstanding.

Table of Contents

INSMED INCORPORATED

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2021

INDEX


PART I. FINANCIAL INFORMATION

ITEM 1	Consolidated Financial Statements

	Consolidated Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020	3

	Consolidated Statements of Comprehensive Loss (unaudited) for the three and six months ended June 30, 2021 and 2020	4

	Consolidated Statements of Shareholders' Equity (unaudited) for the three and six months ended June 30, 2021 and 2020	5

	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2021 and 2020	7

	Notes to Consolidated Financial Statements (unaudited)	8

ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3	Quantitative and Qualitative Disclosures about Market Risk	36
ITEM 4	Controls and Procedures	36

PART II. OTHER INFORMATION

ITEM 1	Legal Proceedings	37
ITEM 1A	Risk Factors	37
ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	37
ITEM 5	Other Information	37
ITEM 6	Exhibits	38

SIGNATURE		39

Unless the context otherwise indicates, references in this Form 10-Q to “Insmed Incorporated” refers to Insmed Incorporated, a Virginia corporation, and “Company,” “Insmed,” “we,” “us” and “our” refer to Insmed Incorporated together with its consolidated subsidiaries. INSMED, PULMOVANCE, ARIKARES and ARIKAYCE are trademarks of Insmed Incorporated. This Form 10-Q also contains trademarks of third parties. Each trademark of another company appearing in this Form 10-Q is the property of its owner.

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

INSMED INCORPORATED

Consolidated Balance Sheets

(in thousands, except par value and share data)


	As of		As of
	June 30, 2021		December 31, 2020
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	928,327	$	532,756
Accounts receivable	18,417		16,562
Inventory	60,385		49,592
Prepaid expenses and other current assets	31,066		23,982
Total current assets	1,038,195		622,892

Intangibles, net	46,735		49,261
Fixed assets, net	53,784		53,953
Finance lease right-of-use assets	9,795		10,334
Operating lease right-of-use assets	32,037		32,946
Other assets	49,237		26,769
Total assets	$	1,229,783	$	796,155

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	31,081	$	42,853
Accrued expenses	45,553		37,807
Accrued compensation	15,939		25,591
Finance lease liabilities	1,158		1,081
Operating lease liabilities	5,925		11,475

Total current liabilities	99,656		118,807

Debt, long-term	548,745		356,318
Finance lease liabilities, long-term	14,114		14,713
Operating lease liabilities, long-term	23,409		21,255
Other long-term liabilities	12,806		9,178
Total liabilities	698,730		520,271

Shareholders’ equity:
Common stock, $0.01 par value; 500,000,000 authorized shares, 115,239,269 and 102,763,060 issued and outstanding shares at June 30, 2021 and December 31, 2020, respectively	1,152		1,028
Additional paid-in capital	2,569,028		2,105,252
Accumulated deficit	(2,039,551)		(1,830,589)
Accumulated other comprehensive income	424		193
Total shareholders’ equity	531,053		275,884
Total liabilities and shareholders’ equity	$	1,229,783	$	796,155

See accompanying notes to consolidated financial statements

Table of Contents

INSMED INCORPORATED

Consolidated Statements of Comprehensive Loss (unaudited)

(in thousands, except per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

Product revenues, net	$	45,366	$	42,495	$	85,580	$	79,355

Operating expenses:
Cost of product revenues (excluding amortization of intangible assets)	10,837		9,950		20,681		18,388
Research and development	64,655		35,748		126,045		71,932
Selling, general and administrative	57,177		49,663		108,727		101,009
Amortization of intangible assets	1,263		1,248		2,526		2,497
Total operating expenses	133,932		96,609		257,979		193,826

Operating loss	(88,566)

SEC Form 10-Q filed by Insmed, Inc.