H.C. Wainwright analysts raised the price target on Insmed (NASDAQ:INSM) to $70.00 (from $52.00) while maintaining a Buy rating.
The analysts commented: "Overall, we view the topline data from the ASPEN trial as positive (met clinical and statistical significance for both doses), yet we will be looking to further analysis to provide more granularity. Specifically, one area in particular that we would like further information on is data from the placebo group, which was not presented in the initial data release. While the 10mg and 25mg data compared to placebo overall were provided, we believe greater context can help define the clinically meaningful reduction to better inform prospective adoption among prescribers. Additionally, we would like more clarity from further analysis of the data to dig deeper into the efficacy of brensocatib in each dose group, along with subgroup analysis across doses. We highlight that from the data presented today, there does not appear to be a dose response in terms of the primary endpoint (reduction in annualized rates of pulmonary exacerbations [PEs]), with determination necessary of whether one or both doses are ultimately brought forward. Based on the KOL’s viewpoints, neutrophil mediation was notably suggested to already be approaching the PE threshold, possibly providing context for why there was an apparent absence of dose-response, from our perspective. Looking to the near-term for brensocatib, we specifically believe these results reflect positive validation for DPP1 inhibition in bronchiectasis, with the potential to expand to other neutrophil-mediated diseases providing, in our view, longer term upside. We update our model to reflect the brensocatib opportunity based on the announced positive results from the Phase 3 ASPEN trial. With these additions, we reiterate our Buy rating and raise our price target to $70 from $52 per share."