Insmed Inc. Files Q2 2024 10-Q Report

TL;DR

Insmed's Q2 10-Q is in. Check financials for latest performance.

AI Summary

Insmed Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and operations. Key financial data and operational updates are presented for the second quarter of 2024.

Why It Matters

This report provides investors and analysts with a detailed look into Insmed's financial health and operational progress during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Insmed faces inherent risks related to drug development, regulatory approvals, and market competition.

Key Numbers

• 20240630 — End of Reporting Period (Indicates the specific date up to which financial information is reported.)
• 20240808 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• INSMED Inc (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240808 (date) — Filing date of the report
• BRIDGEWATER, NJ (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share INSM Nasdaq Global Select Mar

Filing Documents

• insm-20240630.htm (10-Q) — 1425KB
• insm-20240630ex1011.htm (EX-10.1 1) — 31KB
• insm-20240630ex1012.htm (EX-10.1 2) — 84KB
• insm-20240630ex1013.htm (EX-10.1 3) — 42KB
• insm-20240630ex1014.htm (EX-10.1 4) — 91KB
• insm-20240630ex102.htm (EX-10.2) — 14KB
• insm-20240630ex103.htm (EX-10.3) — 66KB
• insm-20240630ex104.htm (EX-10.4) — 129KB
• insm-20240630ex105.htm (EX-10.5) — 508KB
• insm029240630ex1051.htm (EX-10.5 1) — 33KB
• insm-20240630ex311.htm (EX-31.1) — 9KB
• insm-20240630ex312.htm (EX-31.2) — 9KB
• insm-20240630ex321.htm (EX-32.1) — 6KB
• insm-20240630ex322.htm (EX-32.2) — 6KB
• image_01a.jpg (GRAPHIC) — 64KB
• image_0a.jpg (GRAPHIC) — 64KB
• image_0b.jpg (GRAPHIC) — 191KB
• 0001104506-24-000026.txt ( ) — 9925KB
• insm-20240630.xsd (EX-101.SCH) — 54KB
• insm-20240630_cal.xml (EX-101.CAL) — 74KB
• insm-20240630_def.xml (EX-101.DEF) — 362KB
• insm-20240630_lab.xml (EX-101.LAB) — 690KB
• insm-20240630_pre.xml (EX-101.PRE) — 557KB
• insm-20240630_htm.xml (XML) — 1106KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1 Consolidated Financial Statements Consolidated Balance Sheets as of June 3 0 , 2024 (unaudited) and December 31, 202 3 3 Consolidated Statements of Comprehensive Loss (unaudited) for the three and six months ended June 3 0 , 2024 and 2023 4 Consolidated Statements of Shareholders' Equity (Deficit) (unaudited) for the three and six months ended June 3 0 , 2024 and 2023 5 Consolidated Statements of Cash Flows (unaudited) for the six months ended June 3 0 , 2024 and 2023 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 8 ITEM 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 ITEM 3

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 48 ITEM 4

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1

Legal Proceedings

Legal Proceedings 48 ITEM 1A

Risk Factors

Risk Factors 48 ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 49 ITEM 5 Other Information 49 ITEM 6 Exhibits 51 SIGNATURE 52 Unless the context otherwise indicates, references in this Form 10-Q to "Insmed Incorporated" refers to Insmed Incorporated, a Virginia corporation, and the "Company," "Insmed," "we," "us" and "our" refer to Insmed Incorporated together with its consolidated subsidiaries. INSMED, PULMOVANCE, 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. 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS INSMED INCORPORATED Consolidated Balance Sheets (in thousands, except par value and share data) As of As of June 30, 2024 December 31, 2023 (unaudited) Assets Current assets: Cash and cash equivalents $ 1,246,799 $ 482,374 Marketable securities — 298,073 Accounts receivable 40,300 41,189 Inventory 90,063 83,248 Prepaid expenses and other current assets 41,022 24,179 Total current assets 1,418,184 929,063 Fixed assets, net 72,777 65,384 Finance lease right-of-use assets 19,629 20,985 Operating lease right-of-use assets 16,406 18,017 Intangibles, net 61,178 63,704 Goodwill 136,110 136,110 Other assets 85,834 96,574 Total assets $ 1,810,118 $ 1,329,837 Liabilities and shareholders' equity Current liabilities: Accounts payable and accrued liabilities $ 290,844 $ 214,987 Current portion of long-term debt 224,448 — Finance lease liabilities 2,782 2,610 Operating lease liabilities 6,077 8,032 Total current liabilities 524,151 225,629 Debt, long-term 946,825 1,155,313 Royalty financing agreement 158,377 155,034 Contingent consideration 101,500 84,600 Finance lease liabilities, long-term 25,588 27,026 Operating lease liabilities, long-term 11,666 11,013 Other long-term liabilities 3,193 3,145 Total liabilities 1,771,300 1,661,760 Shareholders' equity: Common stock, $ 0.01 par value; 500,000,000 authorized shares, 166,666,599 and 147,977,960 issued and outstanding shares at June 30, 2024 and December 31, 2023, respectively 1,667 1,480 Additional paid-in capital 3,943,826 3,113,487 Accumulated deficit ( 3,903,845 ) ( 3,446,145 ) Accumulated other comprehensive loss ( 2,830 ) ( 745 ) Total shareholders' equity (deficit) 38,818 ( 331,923 ) Total liabilities and shareholders' equity (deficit) $ 1,810,118 $ 1,329,837 See accompanying notes to the unaudited consolidated financial statements 3 INSMED INCORPORATED Consolidated Statements of Comprehensive Loss (unaudited) (in thousands,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The Company and Basis of Presentation Insmed is a people-first global biopharmaceutical company striving to deliver first- and best-in-class therapies to transform the lives of patients facing serious diseases. The Company's first commercial product, ARIKAYCE, is approved in the United States (US) as ARIKAYCE (amikacin liposome inhalation suspension), in Europe as ARIKAYCE Liposomal 590 mg Nebuliser Dispersion and in Japan as ARIKAYCE inhalation 590 mg (amikacin sulfate inhalation drug product). ARIKAYCE received accelerated approval in the US in September 2018 for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options in a refractory setting. In October 2020, the European Commission (EC) approved ARIKAYCE for the treatment of nontuberculous mycobacterial (NTM) lung infections caused by MAC in adults with limited treatment options who do not have cystic fibrosis (CF). In March 2021, Japan's Ministry of Health, Labour and Welfare (MHLW) approved ARIKAYCE for the treatment of patients with NTM lung disease caused by MAC who did not sufficiently respond to prior treatment with a multidrug regimen. NTM lung disease caused by MAC (which the Company refers to as MAC lung disease) is a rare and often chronic infection that can cause irreversible lung damage and can be fatal. The Company's pipeline includes clinical-stage programs, brensocatib and treprostinil palmitil inhalation powder (TPIP), as well as other early-stage research programs. Brensocatib is a small molecule, oral, reversible inhibitor of dipeptidyl peptidase 1 (DPP1), which the Company is developing for the treatment of patients with bronchiectasis and other neutrophil-mediated diseases, including chronic rhinosinusitis without nasal polyps (CRSsNP) and hidradenitis suppurativa (HS). TPIP is an inhaled formulation of the treprostini

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2. Summary of Significant Accounting Policies (Continued) determining if the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found to not be recoverable, the Company measures the amount of the impairment by comparing the carrying value of the assets to the fair value of the assets. Business Combinations and Asset Acquisitions —The Company evaluates acquisitions of assets and other similar transactions to assess whether or not the transaction should be accounted for as a business combination or asset acquisition by first applying a screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen is met, the transaction is accounted for as an asset acquisition. If the screen is not met, further determination is required as to whether or not the Company has acquired inputs and processes that have the ability to create outputs, which would meet the requirements of a business. If determined to be a business combination, the Company accounts for the transaction under the acquisition method of accounting as indicated in ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires the acquiring entity in a business combination to recognize the fair value of all assets acquired, liabilities assumed, and any non-controlling interest in the acquiree and establishes the acquisition date as the fair value measurement point. Accordingly, the Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, and non-controlling interest in the acquiree based on the fair value estimates as of the date of acquisition. In accordance with ASC 805, Business Combinations, the Company recognizes and measures goodwill as of the ac