Exhibit 99.1

                  Insmed Responds to Complaint Filed by Tercica

     RICHMOND, Va.--(BUSINESS WIRE)--Dec. 8, 2005--Insmed Incorporated (Nasdaq:
INSM): On December 06, 2005, Tercica Inc. filed a lawsuit in the U.S. District
Court for the Northern District of California against Insmed Incorporated
alleging deceptive promotional statements and unfair business practices related
to Tercica's product, Increlex(TM).
     The complaint alleges that Insmed has publicly disseminated unlawful
information in violation of the California Business and Professions Code and the
Federal Lanham Act. Tercica is requesting injunctive and monetary relief.
     "Tercica's complaint is unwarranted and without merit. We intend to
vigorously defend our position and our right to inform the investment community
about our product development activities related to iPlex(TM)," stated Geoffrey
Allan, Insmed's Chief Executive Officer. "We fully intend to seek reimbursement
of all attorney fees that we incur to defend this meritless case. In fact, we
believe that Tercica's true motive in filing this case is to inappropriately
damage Insmed."

     About Insmed

     Insmed is a biopharmaceutical company focused on the discovery and
development of drug candidates for the treatment of metabolic diseases and
endocrine disorders with unmet medical needs. For more information, please visit
www.insmed.com.

     Forward Looking Statements

     Statements included within this press release, which are not historical in
nature, may constitute forward-looking statements for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this press release include, but are not limited
to, statements regarding the pending litigation and our future ability to
conduct our business as now conducted and as it is currently proposed to be
conducted. Such forward-looking statements are subject to numerous risks and
uncertainties, including the uncertainty of the outcome of any litigation with
Tercica, the risk that product candidates may fail in the clinic or may not be
successfully marketed or manufactured, the company may lack financial resources
to complete development of product candidates, the FDA may interpret the results
of our studies differently than we have. We can give no assurances that we would
be successful in any litigation or that such litigation would not have a
material adverse effect on our business, financial condition and results of
operation. Furthermore, we may not be able to afford the expense of defending
against such a claim. As a result of these and other risks and uncertainties,
actual results may differ materially from those described in this press release.
For further information with respect to factors that could cause actual results
to differ from expectations, reference is made to reports filed by the Company
with the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended.


     CONTACT: Insmed Incorporated
              Baxter Phillips, III, 804-565-3041
              Fax: 804-565-3510
              bphillips@insmed.com