Insmed, a biopharmaceutical company, has successfully closed the sale of all of the company’s assets related to its follow-on biologics business to a subsidiary of Merck & Co.
As a result of this closing, Insmed has now received $130m, the aggregate purchase price, for the assets. After fees, taxes and other costs related to the transaction, net proceeds are expected to be approximately $123m.
As a result of the transaction, Merck purchased all rights to Insmed’s follow-on biologic assets, including INS-19 and INS-20, as well as control of the Boulder, Colorado-based manufacturing facility. Merck, through an affiliate, has assumed the facility’s lease and ownership of all the equipment in the building.
In addition, Merck has offered positions to employees of the Boulder facility. Insmed has retained its Richmond, Virginia corporate office, which houses its clinical, regulatory, finance, and administrative functions, in support of the continuing Iplex program. Insmed will continue to carefully evaluate potential uses of the proceeds from the transaction.
RBC Capital Markets served as exclusive financial advisor to Insmed on the transaction and the review of strategic alternatives, and provided a fairness opinion to the company’s board of directors. McGuire Woods acted as legal advisor to Insmed and Fried, Frank, Harris, Shriver & Jacobson acted as legal advisor to Merck.