Insmed Incorporated (NASDAQ: $INSM) is a US biopharmaceutical company specializing in developing and commercializing novel therapeutics for serious and rare ailments.
On Tuesday, May 28, 2024, the company’s stock soared after it released phase 3 clinical trial results for its lung disease medication.
Insmed Reports Successful Phase 3 Trial for Brensocatib
In a press release, Insmed stated that the phase 3 trial for Brensocatib, used to treat non-cystic fibrosis Bronchiectasis, had shown positive results. In the trial, patients administered Brensocatib showed significant quality of life improvements compared to those treated with a placebo, which was the trial’s primary focus.
Insmed announced it is working on a New Drug Application with the FDA for brensocatib to treat patients with bronchiectasis in Q4 2024. It anticipates a launch for the medication in mid-2025 in the US, followed by Europe and Japan in the first half of 2026.
Commenting on the trial’s results, Martina Flammer, M.D., MBA, Chief Medical Officer of Insmed, stated, “We now look forward to further analyzing the data while rapidly advancing toward regulatory filings in our key regions, where we believe approximately 1 million bronchiectasis patients may benefit from an approved treatment.”
Financial Performance
According to its most recent quarterly results, Insmed’s revenue increased 16% year over year to $75.5 million. Its most successful product, ARIKAYCE, brought in net sales of $56.3 million, continuing its growth trajectory. Insmed ended the quarter with a net loss of $157.1 million or an EPS of $1.06.
It has a strong balance sheet, with liquidity of $595.7 million. The company forecasts $340-$360 million in sales for ARIKAYCE, which is 15% Y/Y growth at the midpoint. Additionally, it expects that 80% of its total expenses will be on mid- to late-stage commercial programs, with less than 20% going to early-stage programs.
Insmed (INSM) Stock Performance
Following the company’s positive trial results, INSM shares soared 105.05% to $45.11 as of 12:50 PM EDT. As of writing this, over 25.1 million INSM shares have been traded, well above the daily average of 1.8 million. The stock has increased 50.32% since the start of the year and 140.80% in the past 52 weeks.
Analysts’ Outlook On INSM
According to 12 stock analysts, Insmed has an overall strong buy rating. Analysts are optimistic about the stock’s future, giving it a wide price range target, with a high of $56 and a low of $36. Their average forecast of $45.50 is a 1% upside based on the most recent price.
Is Insmed a Buy in 2024?
While Insmed is not profitable, its revenue has been growing, and it has new products in the pipeline with a huge addressable market . Based on the successful phase 3 trial of its lung disease medication, Insmed is set to experience a bump in revenue from next year. Consequently, it could potentially be a great investment.
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