Insmed to redeem $569.5 million convertible notes due 2028

Published 24/04/2025, 12:10
Insmed to redeem $569.5 million convertible notes due 2028

BRIDGEWATER, N.J. - Insmed Incorporated (NASDAQ:INSM), a global biopharmaceutical company with a market capitalization of $12.87 billion, has announced the redemption of all its remaining outstanding 0.75% Convertible Senior Notes due 2028, with an aggregate principal amount of $569.5 million, scheduled for June 6, 2025. The company will pay the redemption price in cash, equivalent to the principal amount plus accrued and unpaid interest. According to InvestingPro data, the stock has delivered an impressive 174% return over the past year.

Holders of the notes have the right to convert their notes into shares of common stock prior to 5:00 p.m. (New York City time) on June 4, 2025. The conversion rate is currently 30.7692 shares per $1,000 principal amount of notes, which translates to a conversion price of approximately $32.50 per share. If all notes are converted, Insmed could issue up to 17,523,336 shares of common stock.

The redemption process will be conducted through the facilities of the Depository Trust Company, with Computershare Trust Company, N.A. serving as the paying agent. This move is in accordance with the terms set forth in the indenture that governs the notes.

Insmed focuses on developing therapies for serious diseases, with advanced programs in pulmonary and inflammatory conditions. The company has a diverse portfolio that includes approved and investigational medicines, as well as early-stage programs in gene therapy and AI-driven protein engineering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities. The information provided is based on a press release statement from Insmed Incorporated.

In other recent news, Insmed Incorporated announced positive results from its phase 3 ASPEN study of brensocatib, a treatment for non-cystic fibrosis bronchiectasis, published in the New England Journal of Medicine. The study met its primary endpoint, showing a significant reduction in the annualized rate of pulmonary exacerbations compared to placebo. Brensocatib is currently under Priority Review by the U.S. Food and Drug Administration, with a decision expected by August 2025. Analyst firms have also shown confidence in Insmed’s potential. H.C. Wainwright maintained a Buy rating with a $90 price target, emphasizing the potential of brensocatib for treating bronchiectasis in patients with Alpha-1 antitrypsin deficiency. Cantor Fitzgerald reiterated an Overweight rating, expressing optimism about Insmed’s Treprostinil Palmitil Inhalation Powder (TPIP) for pulmonary arterial hypertension. RBC Capital Markets reaffirmed their Outperform rating with a $100 price target, highlighting the anticipated data for TPIP and its market potential. These developments reflect a growing interest in Insmed’s innovative treatments and their potential impact on serious diseases.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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