Insmed Reports Second Quarter Financial Results 2013
Second Quarter Financial Results
For the second quarter of 2013, Insmed reported a net loss of $8.9 million, or $0.28 per share, compared with a net loss of $9.7 million, or $0.39 per share, for the second quarter of 2012. The decrease in net loss is primarily due to $11.5 million in revenue recorded during the second quarter of 2013 that related to a one-time payment for the sale of the Company's right to receive future royalties under its license agreement with Premacure AB (now Shire plc). This one-time revenue was partially offset by higher research and development and general and administrative expenses.
Research and development expenses in the second quarter of 2013 increased to $12.2 million from $7.7 million in the second quarter of 2012, primarily due to higher costs for clinical trial activities associated with the Company's Phase 3 clinical trial and two-year open-label extension study in CF patients with pseudomonas lung infections in Europe and Canada, and its Phase 2 clinical trial in patients with NTM lung infections in the United States.
General and administrative expenses for the second quarter of 2013 increased to $7.5 million from $2.2 million in the second quarter of 2012. The increase was primarily due to higher compensation expense, which included $2.6 million in non-cash stock-based compensation expense, and $1.0 million in market research and other related costs.