General and administrative expense for the first quarter of 2013 increased to $4.0 million from $2.5 million in the first quarter of 2012 primarily due to a $1.0 million increase in professional fees related to the review, accounting and reporting of certain equity awards previously granted to employees and directors that, at the time of the grants, were in excess of annual per-person sub-limits included in the Company's 2000 Stock Incentive Plan. The Company also incurred an additional $0.3 million of non-cash stock compensation expense resulting from re-measuring at fair value these equity awards.
During the first quarter the Company received $1.2 million in cash from the sale of a portion of its New Jersey State net operating losses (NOLs) under the State of New Jersey's Technology Business Tax Certificate Transfer Program (the Program). The Program allows qualified technology and biotechnology businesses in New Jersey to sell unused amounts of NOLs and defined research and development tax credits for cash.
Balance Sheet Highlights and Cash Guidance
As of March 31, 2013, Insmed had cash, cash equivalents and a certificate of deposit totaling $81.6 million, compared with $92.9 million as of December 31, 2012. As of March 31, 2013, working capital was $60.6 million, excluding a $2.2 million certificate of deposit that matures in July 2013.
As disclosed in the Company's Form 8-K filed on April 30, 2013, the Company expects to receive $11.5 million in May 2013 from Premacure as a result of Premacure's exercise of an option to obtain a fully paid license to develop, manufacture and commercialize IGF-1, with its natural binding protein, IGFBP-3, for the prevention and treatment of complications of preterm birth.
The Company estimates that its full year 2013 cash requirements to fund operations will be in the range of $45 million to $55 million. The Company expects current cash balances will be sufficient to fund operations into 2014.
Insmed management will host an investment community conference call to discuss these results and answer questions today beginning at 8:30 a.m. Eastern time. Shareholders and other interested parties may participate in the call by dialing 888-803-5993 (domestic) or 706-634-5454 (international) and referencing conference ID number 56371335. The call will also be broadcast live on the Company's website at www.insmed.com.
A replay of the conference call will be accessible two hours after its completion through May 21, 2013, by dialing 855-859-2056 (domestic) or 404-537-3406 (international) and referencing conference ID number 56371335. The call will also be archived for 90 days on the Company's website at www.insmed.com.
Insmed Incorporated is a biopharmaceutical company dedicated to improving the lives of patients battling serious lung diseases. Insmed is focused on the development and commercialization of ARIKACE®, or liposomal amikacin for inhalation, for at least two identified orphan patient populations: cystic fibrosis (CF) patients with Pseudomonas aeruginosa lung infections and patients with non-tuberculous mycobacteria (NTM) lung infections. Insmed's Phase 3 registrational study of ARIKACE in CF patients in Europe and Canada has completed and the Company expects top-line clinical results in mid-2013. Insmed's Phase 2 clinical trial in patients with NTM is under way in the United States and Canada, with clinical results expected in late 2013. For more information, please visit http://www.insmed.com.
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