Product Candidate Arikace Key to Insmed-Transave Merger.

Staff Writer

Insmed Inc. got an instant lead product candidate and control of a combined company formed through a merger with Transave Inc. announced Thursday.

Insmed, of Richmond, Va., will control 53.3 percent of the new company. It acquired all of the outstanding capital stock of Transave, of Monmouth Junction, N.J., in exchange for paying off all of Transave's $7.8 million debt, a cash consideration of $561,280, plus 25.9 million shares of Insmed common stock and 91.7 million shares of Insmed Series B conditional convertible preferred stock valued at 71 cents per share u about $84 million.

Insmed shares (NASDAQ:INSM) were down about 5 cents, or 6.7 percent, to 66 cents at close Thursday in heavy trading of about 4.4 million shares.

The lukewarm investor response contrasted with the optimistic outlook that Insmed's …