RICHMOND, Va., March 15 /PRNewswire-FirstCall/ -- Insmed Inc. , a biopharmaceutical company, today reported results for the fourth quarter and full-year ended December 31, 2009.
In the fourth quarter of 2009, the Company posted a net profit of $2.3 million, or $0.02 per share, as compared to a net loss of $4.0 million, or $0.03 per share, for the fourth quarter of 2008. The $6.3 million improvement was attributable to a $4.5 million decrease in total expenses, a $2.0 million reduction in taxes and a $0.2 million reduction in interest expense, which was partially offset by the $0.4 million reduction in total revenues.
The $2.0 million reduction in taxes resulted from the beneficial impact of the revised tax laws, which came into effect in the fourth quarter of 2009, and allowed the Company to utilize more of its net operating losses (“NOLs”) than previously able under former tax law to reduce the amount of taxes paid on the gain on sale of its FOB business to Merck in March 2009.
For the 12-months ended December 31, 2009, revenues totaled $10.4 million, as compared to $11.7 million in the 12-months of 2008. Consistent with fourth quarter results, the decrease was primarily attributable to a year-over-year decrease of $1.3 million in cost recovery from our IPLEX(TM) EAP in Europe.
The $7.1 million decrease in total expenses was due to an $11.8 million reduction in R&D expenses, which was partially offset by a $4.7 million increase in SG&A expenses.
“As we continue to move ahead with our strategic review, we were pleased with our ability to generate cash in the fourth quarter,” said Dr. Melvin Sharoky, Insmed’s Chairman. “We remain committed to protecting our capital for the full duration of the strategic review. We have an enviable balance sheet, especially considering that access to capital remains limited for many private and public biotech companies, and continue to be focused on leveraging our assets in order to drive maximum long-term shareholder value.”
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