Insmed Prices Public Offering Of 6.0 Mln Shares At $10.40/shr

(RTTNews) - Insmed Inc. (INSM) announced that it priced a registered underwritten public offering of 6.0 million shares of its common stock at a price of $10.40 per share, raising to $62.4 million in gross proceeds. All of the shares in the offering are being sold by the company.

The company expects net proceeds from this offering to be approximately $58 million, after deducting underwriting discounts and commissions, and other estimated offering expenses payable by the company. The offering is expected to close on or about July 22, 2013, subject to the satisfaction of customary closing conditions.

The company noted that it expects to use the proceeds from the sale of the common stock to fund further clinical development of its lead product candidate, ARIKACE, to fund its efforts to obtain regulatory approvals and commercialize ARIKACE, for general research and development, to invest in third-party manufacturers and the supply chain in order to establish redundancy and commercial supply capability in advance of the launch of ARIKACE in Europe and the United States, to fund working capital and capital expenditures and for other general corporate purposes, which may include the acquisition or in-license of additional compounds, product candidates, technology or businesses.

Leerink Swann LLC is acting as sole book-running manager for the offering. Lazard Capital Markets LLC and Canaccord Genuity Inc. are acting as co-managers of the offering.

The company granted the underwriters a 30-day option to purchase 0.9 million additional shares of common stock at the offering price to cover over-allotments, if any.