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EXHIBIT 99
For more information, contact:
Sophia Twaddell
Fleishman Hillard, Inc.
(312) 751-3738
FOR IMMEDIATE RELEASE
INSMED INCORPORATED SEALS DEAL WITH
CELTRIX PHARMACEUTICALS, INC.
Acquires public status, changes company name,
Adds new product candidate to portfolio
RICHMOND, VA - (June 1, 2000) - Insmed Pharmaceuticals, Inc. announced today
that its acquisition of Celtrix Pharmaceuticals, Inc. has been approved by
shareholders of both companies. Previously privately held, the newly formed
company, Insmed Incorporated, will be publicly traded on The Nasdaq Small Cap
Market under the symbol INSM beginning June 1. The previously announced $34.5
million equity financing closed simultaneously.
Additionally, the company announced that its Board of Directors has
approved a 1 for 4 reverse stock split. Insmed will call a special shareholders
meeting to obtain approval for the reverse split. Commenting on the proposed
split, Geoffrey Allan, Ph.D., President and Chief Executive Officer of the
company, stated: "We believe the reverse split will benefit our shareholders. It
will bring our outstanding common stock in line with companies of our size and
market capitalization. Our goal is to have the stock trade in a price range that
will eventually allow our shares to be listed on The Nasdaq National Market." As
a result of the company's decision, NASDAQ has agreed that it will not delist
the company's shares if its share price falls below $4.
Insmed Incorporated is a biopharmaceutical company focused on the
development of products to treat metabolic and endocrine-related conditions. The
company is currently developing INS-1 - a naturally occurring, orally active,
insulin sensitizer. It is being developed for type 2 diabetes and polycystic
ovary syndrome (PCOS). To date in clinical trials, INS-1 has
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improved both ovulation rates in women with PCOS as well as glycemic and lipid
profiles in patients with type 2 diabetes. INS-1 is currently in Phase II
clinical trials.
With the acquisition of Celtrix, Insmed adds SomatoKine(R) to its product
portfolio. Currently in Phase II clinical trials, SomatoKine is a human
recombinant equivalent to the naturally occurring complex of the hormone,
insulin-like growth factor-I (IGF-I) and its primary binding protein (IGFBP3).
Results from a Phase II study indicate SomatoKine has the potential to amplify
bone repair metabolism and functional recovery following hip fracture. In a
study of patients with type 1 diabetes, SomatoKine reduced insulin requirements
and lowered average daily glucose levels.
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Statements included within this press release, which are not historical in
nature, may constitute forward-looking statements for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements regarding expected financial
position, results of operations, cash flows, dividends, financing plans,
business strategies, operating efficiencies or synergies, budgets, capital and
other expenditures, competitive positions, growth opportunities for existing or
proposed products or services, plans and objectives of management, demand for
new pharmaceutical products, market trends in the pharmaceutical business,
inflation and various economic and business trends. Such forward-looking
statements are subject to numerous risks and uncertainties, including risks that
product candidates may fail in the clinic or may not be successfully marketed,
the company may lack financial resources to complete development of product
candidates, competing products may be more successful, demand for new
pharmaceutical products may decrease, the biopharmaceutical industry may
experience negative market trends and other risks detailed from time to time in
the company's filings with the Securities and Exchange Commission. As a result
of these and other risks and uncertainties, actual results may differ materially
from those described in this press release.
