ARTICLE | Company News

Insmed, Transave deal

December 6, 2010 8:00 AM UTC

Insmed acquired Transave in a cash and stock deal valued at about $84.1 million, based on Insmed's Dec. 1 close of $0.71, before the deal was announced. Transave shareholders will receive about 25.9 million Insmed common shares, about 91.7 million shares of Insmed series B conditional convertible preferred stock valued at $0.71 per share, plus $561,280 in cash. Insmed also will pay off Transave's $7.8 million debt. Insmed shareholders own 53% of the combined company, with Transave shareholders holding the remaining 47%. However, the combined company's management team will be led by Transave President and CEO Timothy Whitten, who retains his titles. Former Transave Chairman Donald Hayden is chairman of the merged company.

Insmed gained Transave's lead compound, Arikace, a sustained-release lipid inhaled targeting (SLIT) formulation of amikacin. The product is slated to begin Phase III testing in 2H11 to treat cystic fibrosis (CF) patients with Pseudomonas aeruginosa lung infections and lung infections due to non-tuberculosis mycobacteria. ...