Insmed Inc. is looking to raise up to $250 million in an offering of its common stock.

Morgan Stanley & Co. LLC, SVB Leerink LLC and Goldman Sachs & Co. LLC are acting as joint book-running managers in the offering, with Credit Suisse Securities (USA) LLC, Stifel and H.C. Wainwright & Co. acting as co-managers.

The Bridgewater, N.J.-based company will grant underwriters an option to buy up to $25.5 million additional common shares.

Additionally, Insmed Chairman and CEO William Lewis plans to grant underwriters an option to purchase up to $12 million of the common shares he owns. The company noted that it will not receive proceeds from Lewis' sale of his common shares.

Net proceeds will be used to further commercialize Arikayce, the only U.S. Food and Drug Administration-approved medication for mycobacterium avium complex, or MAC, a rare and serious lung disease. The company will also use the funds to conduct required confirmatory trial to assess and describe the clinical benefit of Arikayce in MAC and invest in increased third-party manufacturing capacity of the drug.

Insmed will also allocate a portion of the proceeds for the clinical development of INS1007 and INS1009. The company is developing INS1007 to potentially treat non–cystic fibrosis bronchiectasis, a rare, progressive pulmonary disorder. Meanwhile, INS1009 is an investigational treatment for pulmonary arterial hypertension, a type of high blood pressure that affects the lungs' arteries and the heart's right side.

The remaining amount will go to Insmed's business expansion activities in Europe and Japan, potential debt repayment, capital expenditures, general research and development, along with other general corporate purposes, such as acquisition or in-license of additional compounds, product candidates, technology or businesses.