Insmed Inc. priced an offering of 9,615,385 common shares at $26 apiece to raise $250 million in gross proceeds.
The underwriters were granted an option to buy up to 1,042,307 additional common shares from Insmed and up to 400,000 additional common shares from the company's chairman and CEO, William Lewis. The company will not receive proceeds from Lewis' sale of his common shares.
The Bridgewater, N.J.-based company will use the net proceeds 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. Additionally, Insmed will 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.
A portion of the proceeds will go to 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, and general research and development, along with other general corporate purposes, such as acquisition or in-license of additional compounds, product candidates, technology or businesses.
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.