2020 Annual Report
A letter from Will Lewis
To Our Shareholders,
I am pleased to report on the most productive and transformative year in Insmed’s history against the backdrop of extraordinary circumstances. The COVID-19 pandemic challenged us to evolve in unforeseen ways—most notably in how we support our patients and how we support one another on largely a remote basis. Despite these unique challenges, we achieved our three primary corporate goals for 2020, uninterrupted: Advancing our commercial business, progressing our pipeline, and strengthening our corporate operations.
You’ve heard me say before that we’re just getting started. One year ago, Insmed was a single-product company with a successful U.S. launch and an ambitious vision. Today, we have become a truly global commercial organization advancing three distinct programs—ARIKAYCE® (amikacin liposome inhalation suspension), brensocatib, and treprostinil palmitil inhalation powder (TPIP)—each with the opportunity to become a cornerstone of treatment in its respective therapeutic area.
This rapid transformation could not have occurred without the talent and commitment of the Insmed team. In 2020, we grew to more than 500 employees, with an increased presence in both Europe and Japan. Our global team reflects the diversity of the patients and communities we serve, enabling us to deliver our novel treatments grounded in the unique needs of these patients and an understanding of the context within which the treatment is prescribed by healthcare professionals.
The events of 2020 demanded introspection, which led me to reflect more sharply on who we are as a company and how we will shape our future. As I look forward to 2021 and beyond, I see several forces that will influence our industry and our organization:
- The speed of innovation will accelerate: The wave of financial stimulus being delivered in response to COVID-19 has the potential to speed up the already breakneck pace of biopharmaceutical innovation—at a time when paradigm-shifting, disease-altering technology is already under development. Ideas and concepts that we once thought were too early or un-investable are being funded and advanced. In addition, the international landscape has shifted to include a new force in biotech, China, which brings additional innovation, market opportunity, and competition.
- A balance of reliability and innovation will win: The companies that find themselves in the strongest position in the near to medium term will be those that straddle reliability with astute investment in breakthrough opportunities that offer an asymmetric return profile—and communicate that message effectively to gain the support of investors. This is particularly true as the appetite for investment in cutting-edge technology waxes and wanes.
- Culture will prevail in the battle for talent: Opportunities abound in the life sciences industry, and the importance of talent and team is perhaps more pronounced today than ever before. The winners will be those who not only attract and retain diverse and talented individuals but also create an environment to unleash their potential. This all comes from creating a sense of purpose and belonging—of mutual commitment and respect within a mission-oriented organization.
Our strategy at Insmed takes these themes into account as we pursue our patient-centered mission in the following ways:
- First, 2020 taught us (again) that culture matters—and, in fact, is the single most important asset a company can have. How were we able to have the most productive year in our history? Talent and culture. Our culture is unique and may not be right for everyone; but we offer it to the world and seek to attract talent who decide if that culture is optimal for them. Our culture is centered around the values of Collaboration, Accountability, Passion, Respect, and Integrity. We strive to constantly cultivate and uphold these values so they remain sincere and relevant for all of our employees. And it is these values, and this culture, that drive our commitment to the environmental, social, and governance aspects of how we run our business. In particular, diversity, equity, and inclusion are clear requirements of such a culture, and we are advancing tangible actions and behaviors to ensure these elements are fostered in our company and in the communities we serve.
- Second, disciplined execution is the most important force we can bring to bear to realize the opportunities we already possess. Today, Insmed is uniquely well positioned to break out from among our current peers as a leading biopharmaceutical company. The potential of our three therapeutic programs is extraordinary and perhaps not fully understood by all constituents, in part because their arrival came during a tumultuous year. Importantly, these programs have transformative potential in at least three separate disease states—two of which would be first-in-disease (nontuberculous mycobacterial [NTM] lung disease and bronchiectasis) and also happen to overlap, making for compelling synergies. In my experience, there are very few companies in our industry with programs poised to unlock such enormous potential. This is an incredibly rare and powerful opportunity both for our patients and our shareholders, and our ability to execute on it will determine our success.
- Third, we must continue to find pathways for growth beyond our initial success to realize long-term achievement. If we plan for what seems like the distant future now and assume success, we will be ready when we get there. With that in mind, we must continue our disciplined deployment of capital to drive shareholder value by advancing programs that will have a material impact on patients. We must build on the success of our existing portfolio while at the same time having the courage to make appropriately sized bold bets for our future. This balance, and judicious determination as to when and where to invest, must continue to be a core competency of Insmed. Discipline in assessing new areas for both organic and external growth through a strict filtration process rather than following the latest trend is key.
2020 was an extraordinary year for Insmed, and we entered 2021 with incredible momentum. I believe we have the capabilities, talent, and financial resources to achieve our vision, uninterrupted. We know that patients are counting on us, and that drives the important work we do every day.
As always, I am grateful to our shareholders, board of directors, employees, and, most important, the patients and healthcare professionals who have placed their trust in our company. Thank you.
Chair & CEO
William H. Lewis, J.D., M.B.A.
Chair and Chief Executive Officer
Roger Adsett, M.B.A.
Chief Operating Officer
Sara M. Bonstein, M.B.A.
Chief Financial Officer
Martina Flammer, M.D., M.B.A.
Chief Medical Officer
Christine Pellizzari, J.D.
Chief Legal Officer
S. Nicole Schaeffer, M.B.A.
Chief People Strategy Officer
John D. Soriano, J.D.
Chief Compliance Officer
Eugene J. Sullivan, M.D.
Chief Product Strategy Officer
Board of Directors
William H. Lewis, J.D., M.B.A.
Chair and Chief Executive Officer, Insmed Incorporated
Chair of the Board, BioNJ
David R. Brennan3
Lead Independent Director, Insmed Incorporated
Former Chief Executive Officer, AstraZeneca PLC
Alfred F. Altomari1,3
Chairman and Chief Executive Officer, Agile Therapeutics, Inc. (Nasdaq: AGRX)
Elizabeth McKee Anderson2
Former Worldwide Vice President, Global Strategic Marketing and Market Access, Infectious Diseases and Vaccines, Janssen Pharmaceuticals, Inc.
Clarissa Desjardins, Ph.D.4
Former President and Chief Executive Officer, Clementia Pharmaceuticals, Inc. (now Ipsen S.A.)
Steinar J. Engelsen, M.D.1,4
Former Acting Chief Executive Officer, Centaur Pharmaceuticals, Inc.
President, Japan, Novartis Pharma
David W.J. McGirr1
Former Chief Financial Officer, Cubist Pharmaceuticals, Inc. (now Merck & Co., Inc.)
Carol A. Schafer1,2
Managing Partner, Hyphen Advisors, LLC
Melvin Sharoky, M.D.2,4
Former President and Chief Executive Officer, Somerset Pharmaceuticals, Inc.
Committee Legend (chairpersons in green) 1: Audit; 2: Nomination & Governance; 3: Compensation; 4: Science & Technology
Various statements in this annual report are “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. Words herein such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “intends,” “potential,” “continues,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) identify forward-looking statements. Forward-looking statements are based on our current expectations and beliefs, and involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance and achievements and the timing of certain events to differ materially from the results, performance, achievements or timing discussed, projected, anticipated or indicated in any forward-looking statements. For additional information, see Item 1A – Risk Factors of the Form 10-K included in this Annual Report. We undertake no obligation to update or revise publicly any forward-looking statements.