Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com - Wells Fargo raised its price target on Insmed (NASDAQ:INSM) to $140.00 from $130.00 on Wednesday, while maintaining an Overweight rating on the stock. The company’s shares have shown remarkable momentum, with a 76.7% gain year-to-date and currently trading near its 52-week high of $122.03. According to InvestingPro data, analysts maintain a strong buy consensus with a 1.22 rating.
The price target increase follows the approval of Insmed’s treatment for non-cystic fibrosis bronchiectasis (NCFB), which was granted for both dose levels for patients 12 years and older. The US listed pricing was set at $88,000, which Wells Fargo noted was on the high end of the previous guidance range. With a robust gross profit margin of 75.7% and revenue growth of 21.2% in the last twelve months, the company shows strong commercial potential. Get deeper insights into Insmed’s financial health and growth prospects with a comprehensive Pro Research Report, available exclusively on InvestingPro.
Wells Fargo highlighted that the approval came with a broad and clean label, with no boxed warnings, contraindications, or required baseline labs or monitoring. The label does include warnings for skin-related and periodontal issues, which the firm described as expected.
The firm pointed out that the absence of requirements for a specific number of documented pulmonary exacerbations is "incrementally positive," though insurers may still refer to the ASPEN inclusion/exclusion criteria for reimbursement purposes.
According to Wells Fargo, consensus estimates align with Insmed’s projected peak sales of approximately $5 billion or more in NCFB, while expectations for other indications remain relatively low.
In other recent news, Insmed has received FDA approval for Brinsupri, marking a significant milestone as the first and only treatment for non-cystic fibrosis bronchiectasis (NCFB). This approval allows Insmed to offer the drug in 10 mg and 25 mg doses without significant warnings or required lab monitoring. Following this development, UBS and Jefferies have raised their price targets for Insmed to $140 and $148, respectively, both maintaining a Buy rating. In contrast, Morgan Stanley downgraded Insmed from Overweight to Equalweight, although it increased its price target to $126. RBC Capital also raised its price target to $120, maintaining an Outperform rating, citing optimism for the drug’s potential launch later this year. These updates highlight the anticipation and strategic positioning surrounding Brinsupri’s market introduction. The drug’s approval is considered a pivotal moment in Insmed’s evolution in the rare lung disease sector. As a result, Insmed is poised to impact the market significantly, with analysts closely monitoring its progress.
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