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Investing.com - Wolfe Research has raised its price target on Insmed (NASDAQ:INSM) to $173.00 from $109.00 while maintaining an Outperform rating on the stock. The new target sits well within the current analyst range of $110 to $240, as tracked by InvestingPro. The stock has shown remarkable momentum, gaining 12.42% in the past week and currently trading near its 52-week high of $123.42.
The research firm cited the upcoming chronic rhinosinusitis without nasal polyps (CRSsNP) readout as the next major catalyst for the company following its recent PDUFA approval. Wolfe Research noted that Insmed’s CEO Will Lewis expressed cautious optimism about the blinded data patterns in the primary endpoint. According to InvestingPro data, the company has maintained strong revenue growth of 21.15% despite not yet achieving profitability, with 16 additional key insights available to subscribers.
Wolfe Research believes the potential movement for the stock is skewed to the upside with modest downside risk. The firm highlighted that management views CRSsNP as essentially "bronchiectasis in the nasal passage" with similar disease pathology to bronchiectasis itself.
The research firm also pointed out potential benefits from the trial’s 24-week endpoint, as the drug mechanistically takes several weeks to work in the bone marrow. Additionally, the symptom total score (sTSS) endpoint is measured as an average daily score over 28 days, which should help reduce variability.
The BiRCh trial is stratified by eosinophil counts, excluding patients with counts above 750, similar to the ASPEN trial structure. Wolfe Research noted that in the ASPEN study, patients with mixed eosinophil profiles responded to treatment.
In other recent news, Insmed has received FDA approval for Brinsupri (brensocatib), a treatment for non-CF bronchiectasis. This approval includes both 10mg and 25mg doses for patients 12 years and older, with a clean label free of major warnings or monitoring requirements. Following this development, several financial firms have adjusted their price targets for Insmed. Stifel raised its target to $145, maintaining a Buy rating. TD Cowen increased its target to $154, also maintaining a Buy rating. RBC Capital adjusted its target to $138, keeping an Outperform rating. Mizuho raised its target to $165, citing updated success probabilities and pricing assumptions. Wells Fargo set its target at $140, noting the high-end pricing of $88,000 for the treatment. These adjustments reflect the positive outlook from analysts following the drug’s approval.
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