As of June 30, 2014, Insmed had cash and cash equivalents of $82.7 million and working capital of $64.9 million. Excluding depreciation and non-cash stock compensation expense, the Company’s cash operating expenses for the three months ended June 30, 2014 was $19.7 million and includes expenditures of $2.1 million related to the build out of additional and redundant third party manufacturing capacity.
During the second half of 2014, the Company plans to continue to fund further clinical development of ARIKAYCE, increase its investment in third-party manufacturing capacity, support efforts to obtain regulatory approvals and prepare for ARIKAYCE commercialization. As a result, Insmed estimates that its cash operating expenses for the second half of 2014 will be in the range of $42 million to $47 million, which includes additional expenditures of $6 million to $8 million for third-party manufacturing capacity. In addition, in the second half of 2014 the Company expects to invest $2.5 million to $3.5 million in new capital expenditures and pay current liabilities of $2.5 million related to the Company’s new office and laboratory facilities in Bridgewater, N.J. The Company expects current cash balances will be sufficient to fund operations into 2015.
Senior Leadership Team Update
Matthew Pauls, Chief Commercial Officer (CCO), will be leaving Insmed in August 2014 to become the Chief Executive Officer of a biopharmaceutical company based in Sweden and the U.S. Insmed plans to initiate a search to identify a new CCO.
Gina Eagle, MD, was recently promoted to Vice President of Clinical Development. Dr. Eagle is responsible for designing and overseeing the clinical trials and development of the Company's product candidates. Dr. Eagle spent 6 years practicing medicine and has more than 9 years of experience in clinical development in the pharmaceutical industry.