On Tuesday, Goldman Sachs (NYSE:GS) reiterated its Buy rating on shares of Insmed (NASDAQ:INSM) Incorporated (NASDAQ:INSM), with a price target of $74.00. The firm's positive outlook is based on recent topline data from the ASPEN study, which evaluated the efficacy of brensocatib in treating non-CF bronchiectasis. The treatment showed statistically significant reductions in the frequency of pulmonary exacerbations—21.1% and 19.4% for the 10mg and 25mg doses, respectively.
The study also indicated secondary benefits, including a slower decline in lung function and quality of life improvements at the 25mg dose, which suggests potential disease-modifying effects. Goldman Sachs views these results as confirmation of their bullish scenario for Insmed.
The firm anticipates that these findings will pave the way for regulatory approval, with a New Drug Application (NDA) submission expected in the fourth quarter of 2024, followed by a potential U.S. launch in mid-2025. European and Japanese market introductions are forecasted for the first half of 2026.
According to Goldman Sachs, the successful development of brensocatib could unlock a blockbuster commercial opportunity, with projected peak global sales of $3.2 billion in the bronchiectasis market by 2034. While these figures do not include additional potential sales from other neutrophil-mediated diseases, such sales could provide further upside.
Insmed is scheduled to discuss the market opportunity for brensocatib, along with other products like Arikayce and TPIP, during its investor event on June 4. The company will present insights into the market potential in light of the positive ASPEN data, as well as other recent study results.
The analyst from Goldman Sachs believes that Insmed's consistent pipeline and commercial execution position the company well for profitability by 2028, as forecasted by Goldman Sachs estimates. Furthermore, the firm suggests that Insmed's progress and portfolio make it an attractive acquisition target for larger biopharmaceutical companies with a focus on respiratory diseases.
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