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EXHIBIT 99
For more information, contact:
Sophia Twaddell
Fleishman Hillard, Inc.
(312) 751-3738
FOR IMMEDIATE RELEASE
INSMED INCORPORATED SIGNS DEFINITIVE AGREEMENT
WITH TAISHO PHARMACEUTICAL CO., LTD. TO DEVELOP INS-1
RICHMOND, VA (July 18, 2000) - Insmed Incorporated (Nasdaq: INSM) today
announced it had signed a definitive agreement with Taisho Pharmaceutical Co.,
Ltd. for the development and commercialization in Japan and other Asian
countries of Insmed's lead compound, INS-1, for the treatment of Type 2 diabetes
and Polycystic Ovary Syndrome (PCOS). Insmed will retain all rights to INS-1 in
the rest of the world, including North America and Europe. The
pre-commercialization value of the collaboration is $32 million, which includes
license fees and payments for certain development and regulatory milestones as
well as a previously announced equity investment in Insmed. Taisho will also
fund 20% of the development costs for INS-1 in North America and Europe. In
addition, Insmed will receive royalties on product sales in Japan and other
Asian Countries.
"Taisho is an excellent partner with proven experience," said Geoffrey
Allan, Ph.D., President and CEO of Insmed. "This agreement provides Insmed with
a strong collaborator for the Japanese and Asian markets and substantial
financial resources to help fund the development of the product worldwide while
allowing Insmed to retain development and commercialization rights in the major
pharmaceutical markets outside of Japan and other Asian Countries."
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INS-1, a naturally occurring, oral, insulin sensitizer, is believed to
be an essential component of a molecule that activates the key enzymes
controlling glucose metabolism in people who are insulin resistant. Frequently
asymptomatic, insulin resistance is thought to exist undetected in up to 20% of
the general population. Insulin resistance is implicated as a major cause of
Type 2 diabetes, PCOS, obesity, and a number of major cardiovascular disorders,
collectively described as insulin resistance syndrome, or Syndrome X.
PCOS is the most common female endocrine disorder, affecting up to 6%
of premenopausal women. It is the leading cause of anovulatory infertility in
the U.S. and Japan. Women suffering from this disorder are often overweight,
have excess facial hair and suffer from menstrual irregularities. They have a
significantly increased risk of developing Type 2 diabetes, coronary artery
disease, and endometrial cancer.
Diabetes is a serious metabolic disorder characterized by the body's
inability to properly use or produce insulin, the principal hormone that
regulates glucose metabolism. More than 20 million people in the U.S. and Japan
have been diagnosed with Type 2 diabetes. By 2008, this number is expected to
increase to over 34 million.
Insmed Incorporated, based in Richmond, Virginia, is a
biopharmaceutical company focused on developing drugs to treat serious metabolic
disease and endocrine disorders. The company has two lead drug candidates
currently in Phase II clinical trials in the United States.
Taisho Pharmaceutical Co. Ltd., headquartered in Tokyo, is the top
pharmaceutical company in over-the-counter healthcare products in Japan. It
continues to expand its sales and research, both internally and through
collaborations, in the prescription drug area. In the fiscal year ended March
31, 2000, Taisho's sales were about $2.6 billion, with prescription drugs
accounting for about 25% of total sales. Taisho is focused on contributing to
the maintenance and improvement of consumer's health by creating and providing
quality drugs, related healthcare products and information services that satisfy
consumers with various lifestyles. Taisho is actively strengthening research and
development of new products in the prescription drug field and considers
collaborations with biopharmaceutical companies as part of such activities.
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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.
