INSM previously announced their Q1:13 results, ending the quarter with $79.4 million in cash and short-term investments.
INSM anticipates that current cash will be sufficient through Phase III CF and NTM trial data and into mid-2014. The company guided
to cash requirements in the $45-55 million range for 2013. The company will also receive a $11.5 million payment in May, under an
agreement to sell all rights to revenues for an IGF-1 candidate to Premacure/Shire PLC. We updated our model for reported financials.
Beyond CF, the NTM Phase II study in the US is expected to readout by YE:13. We believe the NTM opportunity remains
underappreciated; we anticipate the potential publication of a patient chart survey that defines the NTM unmet medical needs.
We believe that the Street has largely overlooked the opportunity for ARIKACE in the NTM setting, which we estimate could
be worth as much as $1 billion annually. A growing body of evidence continues to suggest that NTM is underdiagnosed, with most
recent estimates suggesting as many as 50,000 cases in the US annually. If approved, ARIKACE could be rapidly be adopted to treat
50% of NTM patients who fail front-line, systemic therapy, while better diagnosis in an aging population could further expand sales in
this setting. Importantly we note that on the Q2 call, management indicated that their NTM trial has generated a lot of interest from
investigators and patients.