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On Tuesday, Stifel analysts raised the price target for Insmed stock (NASDAQ: NASDAQ:INSM) to $110 from $92 while maintaining a Buy rating. Currently trading at $90.93, the stock is near its 52-week high, with InvestingPro data showing impressive revenue growth of 20.77% over the last twelve months. The decision followed the release of Phase 2 data for Insmed’s TPIP in treating pulmonary arterial hypertension (PAH), which showed a significant reduction in pulmonary vascular resistance (PVR) and improvements across multiple secondary endpoints.
The analysts highlighted that Insmed is capable of advancing to large-cap status, with the company already commanding a market capitalization of $16.53 billion. They emphasized that the recent data marks a significant step in achieving this goal. The analysts also noted TPIP’s potential to surpass sales of brensocatib, estimating peak sales of approximately $5.3 billion in PAH/PH-ILD. According to InvestingPro, the company maintains a strong gross profit margin of 76.49%.
The report compared TPIP’s commercial prospects to successful products like Merck (NSE:PROR)’s Winrevair, which achieved over $3 billion in peak sales, and United Therapeutics (NASDAQ:UTHR)’ Tyvaso, which is currently generating approximately $1.9 billion in PAH/PH-ILD sales.
The positive TPIP data is expected to enhance Insmed’s valuation as the company approaches a potential brensocatib approval and launch on August 12. The analysts suggested that the data might also renew discussions about strategic options for the company.
In other recent news, Insmed has reported positive outcomes from its Phase 2b study of Treprostinil Palmitil Inhalation Powder (TPIP) for pulmonary arterial hypertension (PAH), meeting both primary and secondary efficacy endpoints. The study demonstrated a 35% placebo-adjusted reduction in pulmonary vascular resistance and a 35.5-meter improvement in the six-minute walk distance. These results have led analysts from TD Cowen and Jefferies to raise their price targets for Insmed stock to $114 and $121, respectively, while maintaining a Buy rating. Jefferies also increased its peak revenue projection for Insmed to $2.6 billion, attributing $1.25 billion to PAH treatments.
Additionally, Insmed plans to engage with the FDA to design a Phase 3 trial for PAH, with trials expected to commence in early 2026. Truist Securities has reaffirmed its Buy rating with a price target of $108, citing upcoming catalysts like the TPIP data release and the PDUFA date for Brensocatib in 2025. The positive trial results have sparked investor optimism, as Insmed prepares for the next stages of clinical trials. Leerink Partners reiterated an Outperform rating with a $100 price target, noting that the results exceeded expectations. Insmed’s commitment to advancing its pipeline is evident as it engages with regulatory authorities for future trials.
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