Insmed(INSM) - 2024 Q2 - Quarterly Report

Financial Performance - Product revenues for Q2 2024 reached $90,340, a 16.4$77,229 in Q2 2023[7] - Operating expenses for Q2 2024 totaled $379,244, an increase of 21.3$312,757 in Q2 2023[7] - Net loss for Q2 2024 was $300,609, compared to a net loss of$244,809 in Q2 2023, reflecting a 22.8% increase in losses[7] - Basic and diluted net loss per share for Q2 2024 was $(1.94), compared to$(1.78) in Q2 2023[7] - The net loss for the six months ended June 30, 2024, was $457.7 million, compared to a net loss of$404.6 million for the same period in 2023, reflecting an increase in losses[10] - The company reported a net loss of $300.6 million for the three months ended June 30, 2024, compared to a net loss of$244.8 million for the same period in 2023, representing a 22.8% increase in losses[22] Assets and Liabilities - Total current assets increased to $1,418,184, up 52.6$929,063 as of December 31, 2023[5] - Total assets increased to $1,810,118, up 36.0$1,329,837 as of December 31, 2023[5] - Current liabilities increased to $524,151, a significant rise from$225,629 at the end of 2023, indicating higher short-term obligations[5] - Shareholders' equity increased to $1,771,300, up from$1,661,760 as of December 31, 2023, reflecting a positive change in equity position[5] - The company reported cash and cash equivalents of $1,246.8 million, an increase from$482.4 million as of December 31, 2023[27] Cash Flow and Financing - Cash and cash equivalents rose to $1,246,799, significantly up from$482,374 at the end of 2023, indicating improved liquidity[5] - The company raised $713.2 million from the issuance of common stock during the six months ended June 30, 2024, compared to$38 million in the same period of the previous year[10] - The company experienced a net cash used in operating activities of $307 million for the six months ended June 30, 2024, compared to$269.1 million for the same period in 2023[10] - Net cash provided by financing activities was $784.5 million for the six months ended June 30, 2024, significantly higher than$43.9 million for the same period in 2023[158] - The company may need to raise additional capital to fund operations and commercialization efforts, particularly for ARIKAYCE and brensocatib, although it believes it has sufficient funds for at least the next 12 months[157] Research and Development - Research and development expenses decreased to $146,748 in Q2 2024, down 25.5$196,969 in Q2 2023[7] - The company expects to continue incurring consolidated operating losses while funding R&D activities for ARIKAYCE, brensocatib, TPIP, and other pipeline programs[12] - The company is developing brensocatib for bronchiectasis and other neutrophil-mediated diseases, and TPIP for pulmonary hypertension associated with interstitial lung disease and pulmonary arterial hypertension[12] - The company is advancing early-stage research programs across various technologies, including gene therapy and AI-driven protein engineering[95] Customer Concentration - The company relies on three largest customers for a significant portion of its revenue, with Customer A contributing 34%, Customer B 32%, and Customer C 18% for the six months ended June 30, 2024[16] - Customer A accounted for 34% of gross product revenue for the six months ended June 30, 2024, compared to 35% in the same period of 2023; Customer B represented 32% in 2024, down from 36% in 2023; and Customer C accounted for 18%, up from 17%[16] Acquisitions and Milestones - The Company acquired Adrestia Therapeutics in June 2023 for a total purchase price of $72.4 million, with potential contingent payments of up to$326.5 million based on future milestones[81] - In January 2023, the Company acquired Vertuis Bio for a total purchase price of $10.25 million, with additional contingent payments of up to$86.8 million based on development and sales milestones[82] - The Company made a milestone payment of $12.5 million to AstraZeneca upon the announcement of filing an NDA for brensocatib[148] Debt and Interest - The company reported a current portion of long-term debt of$790.553 million as of June 30, 2024, compared to $788.909 million as of December 31, 2023, indicating a slight increase[55] - Interest expense for the three months ended June 30, 2024, totaled$20.7 million, compared to $20.0 million for the same period in 2023[67] - The estimated fair value of the 0.75$1.2 billion as of June 30, 2024[38] - The estimated fair value of the 1.75% convertible senior notes due 2025 was $384.5 million as of June 30, 2024[38] Regulatory and Product Development - ARIKAYCE received accelerated approval in the US in September 2018 for the treatment of MAC lung disease, with subsequent approvals in Europe and Japan[95] - The company plans to file a New Drug Application (NDA) with the FDA for brensocatib in patients with bronchiectasis in Q4 2024[116] - The anticipated launch of brensocatib in the US is mid-2025, followed by launches in Europe and Japan in the first half of 2026[95] - The company emphasizes the importance of maintaining regulatory approvals and commercial readiness for its product candidates[95]