RICHMOND, Va.--(BUSINESS WIRE)--June 13, 2006--Insmed Incorporated (Nasdaq:INSM - News): On June 9, 2006, the United States District Court for the Northern District of California (Judge Saundra Brown Armstrong) granted Insmed’s Motion to Dismiss the Complaint filed by Tercica, Inc. in the case Tercica, Inc. vs. Insmed Incorporated. The Complaint, filed and amended in December 2005, alleged violations of the California Business and Professions Code and the federal Lanham Act for allegedly false and misleading statements made by Insmed. In dismissing the Complaint, the Court ruled, among other things, that Tercica had not met its burden of establishing that the alleged statements made by Insmed constitute “false advertising”, or that the Court had jurisdiction over Insmed in this case and that the venue was proper. Further, by dismissing Tercica’s complaint without leave to amend, the Court recognized that the deficiencies in Tercica’s lawsuit cannot be cured by filing another lawsuit against Insmed in the United States District Court for the Northern District of California. Insmed previously notified Tercica that Insmed would seek fees and costs related to Tercica’s baseless lawsuit. Given the Court’s ruling, Insmed will pursue this option.
