Jefferies raises Insmed stock price target on positive trial data

Published 10/06/2025, 18:14
Jefferies raises Insmed stock price target on positive trial data

On Tuesday, Jefferies analysts raised the price target for Insmed (NASDAQ:INSM) stock to $121 from $105, while maintaining a Buy rating. The adjustment comes as the company reported promising results from its Phase 2 trial for pulmonary arterial hypertension (PAH). The stock, currently trading at $89.99, is near its 52-week high, with InvestingPro data showing strong analyst support and six analysts recently revising earnings estimates upward.

The analysts highlighted the trial’s impressive efficacy, with a 35% placebo-adjusted reduction in pulmonary vascular resistance (PVR), marking the best performance on this endpoint in PAH. Additionally, the trial demonstrated a statistically significant improvement in the six-minute walk distance (6MWD) by 35.5 meters, surpassing expectations. With a market capitalization of $16.39 billion and revenue growth of 20.77% in the last twelve months, the company shows promising momentum.

These positive outcomes set the stage for a successful pivotal trial, and the analysts suggest that physicians may consider switching from Tyvaso, a competing treatment, in the future. Insmed plans to initiate its Phase 3 trial in early 2026 and is currently engaging with the FDA on the trial’s design.

Jefferies analysts also increased their peak revenue projection for Insmed from $1.6 billion to $2.6 billion, with $1.25 billion attributed to PAH treatments.

In other recent news, Insmed Incorporated has reported positive outcomes from its Phase 2b study of treprostinil palmitil inhalation powder (TPIP) for pulmonary arterial hypertension (PAH). The study achieved its primary and all secondary endpoints, including a 35% placebo-adjusted reduction in pulmonary vascular resistance and a 35.5-meter improvement in six-minute walk distance. Additionally, the study showed a 60% reduction in NT-proBNP concentrations, a biomarker for cardiac stress. Following these results, Insmed plans to engage with the FDA to design Phase 3 trials, aiming to begin studies for pulmonary hypertension associated with interstitial lung disease by the end of 2025 and for PAH in early 2026.

Analysts at Truist Securities have reaffirmed their Buy rating on Insmed stock with a price target of $108, expressing confidence in the company’s potential market opportunities. They highlighted the significance of upcoming catalysts, such as the TPIP data release and the FDA’s decision on brensocatib, scheduled for August 2025. Meanwhile, Leerink Partners maintained an Outperform rating with a $100 price target, noting the potential of TPIP to become a major product opportunity. The analysts emphasized the importance of the Phase 2 data for TPIP and its expected market impact.

Insmed’s announcement has generated optimism among investors, as TPIP demonstrates potential as a preferred prostanoid treatment for PAH. The company reported that 75% of patients in the Phase 2b study reached the highest dose without significant issues, and 95% enrolled in a long-term extension to evaluate higher doses. These developments indicate Insmed’s commitment to advancing its treatment pipeline and engaging with regulatory authorities for future clinical trials.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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