Stifel has maintained a positive outlook on Insmed (NASDAQ:INSM) Incorporated (NASDAQ: INSM), reiterating a Buy rating and an $88.00 price target for the company's stock.
The affirmation follows the release of Phase 2 trial results for a competing drug, which was anticipated to pose a significant challenge to Insmed's product but ultimately showed limitations.
The trial in question evaluated BI 1291583, a drug developed for non-cystic fibrosis bronchiectasis (NCFBE), and was presented at the European Respiratory Society (ERS) meeting.
According to Stifel's analysis, the data from this trial suggested a ceiling effect for the class of drugs that includes Insmed's brensocatib, indicating that the competitive threat may be less severe than previously thought.
The Phase 2 trial, known as AIRLEAF, aimed to demonstrate superiority in reducing neutrophil serine proteases (NSPs) but failed to meet its primary endpoint at the highest dosage of 5mg. The trial also showed that the 2.5mg dose, which did yield better outcomes, may have been influenced by the small size of the patient group and imbalances in baseline characteristics.
Stifel's commentary emphasized that the results from the AIRLEAF trial could be seen as a positive development for Insmed, as the market had been closely monitoring the competitive landscape.
H.C. Wainwright reaffirmed its Buy rating and $90.00 stock price target for Insmed, despite new competitor data. The firm anticipates a clearer understanding of how Haisco Pharmaceutical Group's HSK31858 data compares to Insmed's brensocatib after the presentation of subpopulation data at the CHEST 2024 Annual Meeting.
Insmed reported a 20% increase in second-quarter revenue for Arikayce, reaching $90.3 million. Mizuho Securities and TD Cowen revised their 12-month price targets for Insmed to $92.00 and $98.00, respectively. Insmed plans to file a New Drug Application for brensocatib in the fourth quarter of 2024, with a U.S. launch planned by mid-2025.
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