INSM Stock Dips In Extended Trading After Experimental Skin Disease Drug Fails In Study

• Insmed said that it will subsequently discontinue development of brensocatib in hidradenitis suppurativa
• Martina Flammer, Chief Medical Officer of Insmed, said that the company was disappointed with the results.
• According to data from Koyfin,  all of the 20 analysts covering INSM stock rate it ‘Buy’ or higher.

Insmed Incorporated (INSM) said on Tuesday that its mid-stage study evaluating brensocatib in adult patients with moderate to severe hidradenitis suppurativa failed to meet its goals.

Shares of the company fell 2% after hours.

Study Results

The mid-stage trial was aimed at evaluating the safety and efficacy of brensocatib in adults with moderate to severe hidradenitis suppurativa, a chronic, non-contagious inflammatory skin condition characterized by painful, recurring lumps and abscesses.  

The trial did not meet the primary or secondary endpoints in either the 10 mg or 40 mg treatment arms though the drug was well tolerated, the company said. The study enrolled 214 patients and its primary goal was a reduction in total abscess and inflammatory nodule at 16 weeks.

Participants of the study experienced a 45.5% and 40.3% reduction from baseline in total abscess and inflammatory nodule (AN) count in the brensocatib 10 mg and 40 mg arms, respectively, compared to a 57.1% reduction in the placebo arm, the company said.

Insmed said that it will subsequently discontinue development of brensocatib in hidradenitis suppurativa. Martina Flammer, Chief Medical Officer of Insmed, said that the company is “disappointed” with the results.

How Did Retail Traders React?

On Stocktwits, retail sentiment around INSM stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume fell from ‘high’ to ‘normal’ levels.

According to data from Koyfin, all 20 analysts covering INSM stock rate it ‘Buy’ or higher. The stock has an average 12-month price target of $214.79, representing a potential upside of about 32% from last closing price.

The company currently has two approved therapies, including Brinsupri for the treatment of non-cystic fibrosis bronchiectasis (NCFB) in adults and children 12 years and older, and Arikayce for the treatment of certain Mycobacterium avium complex (MAC) lung infections.

INSM stock has more than doubled over the past 12 months.  

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