HC Wainwright Doubles Price Target On Insmed After Brinsupri Approval: Retail Expects Stock To Hit $150 By End Of Week

H.C. Wainwright on Wednesday doubled its price target on Insmed (INSM) to $240 from $120 while keeping a ‘Buy’ rating on the shares after the firm’s Brinsupri got approved as a treatment for non-cystic fibrosis bronchiectasis (NCFB).

The new price target of $240 represents a near 97% upside to INSM’s closing price on Tuesday.

H.C. Wainwright sees Insmed as "poised to join the ranks" of Roche's (RHHBY) Genentech and Pfizer's (PFE) Seagen as companies that have successfully deployed the "pipeline-in-a-pill" strategy, said the analyst. Wainwright believes that Brinsupri and its next-generation versions will be able to treat a broad range of neutrophil-mediated diseases.

Given the approval and potential for a "pipeline-in-a-pill", the firm now includes chronic rhinosinusitis without nasal polyps (CRSsNP) and hidradenitis suppurativa (HS) indications in its valuation, assuming a launch by 2027 for CRSsNP and a launch by 2028 for HS.

On Stocktwits, retail sentiment around Insmed trended in the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

A Stocktwits user expects the shares to hit $150 by the end of the week.

Brinsupri, an oral, once-daily treatment, is now the first and only FDA-approved treatment for NCFB. It was approved on Tuesday for adults as well as children aged 12 years and older.

Bronchiectasis is a serious, chronic lung disease that causes airways to permanently widen due to a cycle of infection, inflammation, and lung tissue damage. Symptoms include chronic cough, excessive sputum production, shortness of breath, and repeated respiratory infections, which can worsen the underlying condition. A hallmark of bronchiectasis is frequent exacerbations, or flares, when symptoms worsen.

In a late-stage study, patients taking Brinsupri 10 mg or 25 mg had a 21.1% and 19.4% reduction in the annual rate of exacerbations, respectively, as compared to placebo. Both dosage strengths of Brinsupri also significantly prolonged the time to first exacerbation.

INSM stock is up by 76% this year and by 59% over the past 12 months.

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