Insmed Plans Stock, Note Offerings; Shares Slump
11:50 AM EDT, 05/10/2021 (MT Newswires) -- Insmed (INSM) said it plans to sell $250 million of its common stock and $500 million of its convertible senior notes due 2028 in separate public offerings.
The biopharmaceutical company said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares and up to an additional 15% of the notes.
The company plans to use some of the net proceeds from the note offering to repurchase a portion of the 2025 notes. The remainder of the proceeds from the note offering and the net proceeds from the equity offering will be used to fund the commercialization and development of ARIKAYCE; research and development of brensocatib, TPIP or any of Insmed's product candidates; and for other general corporate purposes.
Shares of Insmed slumped over 19% in midday trading.
Price: 26.52, Change: -6.06, Percent Change: -18.60