The following article indicates that INSM was smart to sell its FOB assets. The demand for product, at the moment, is less than the available capacity.

It seems INSM is in a good position to negotiate a contract manufacturer (CM) or sell its IP for IPLEX to Lonza so that they can keep their new plant busy.

Lonza currently produces Increlex for Ipsen; the two companies have an established relationship. In theory, Lonza sould be comfortable with the current INSM 50/50 IPLEX opt-in deal with Ipsen as Ipsen can provide the development expertise while Lonza concentrates on the manufacture of the product. I like win/win/win deals.

Title: Lonza Restructures, Plans Cost Reductions
Nov 5, 2009

...Adapt biopharmaceutical large-scale capacities to competitively fill large-scale plants with small-volume products (i.e., Phase II and III materials)...

...Lonza expects these operational measures will generate free-cash flow in 2010. It added that an asset review is also underway.

http://pharmtech.findpharma.com/pharmtec...