On Thursday, H.C. Wainwright reaffirmed its Buy rating and $90.00 stock price target for Insmed (NASDAQ:INSM) Incorporated (NASDAQ:INSM), despite new competitor data emerging ahead of a major conference. The firm highlighted upcoming presentations at the 2024 European Respiratory Society (ERS) Conference, scheduled for September 7-11 in Vienna, Austria, where competitors Haisco Pharmaceutical Group and Chiesi Farmaceutici will showcase their research findings.
The Phase 2 trial data for Haisco's HSK31858, a DPP1 inhibitor, showed a significant drop in exacerbation frequency among Chinese adults with bronchiectasis over a 24-week period. The study reported a 48% reduction in the treatment group taking 20mg of HSK31858 daily and a 60% reduction for those on a 40mg dose, both compared to a placebo group.
These results were contrasted with Insmed's Phase 3 ASPEN trial of brensocatib, which demonstrated a reduction in the risk of exacerbation by 21.1% in the 10mg group and 19.4% in the 25mg group over 52 weeks. H.C. Wainwright noted that the HSK31858 study was limited to Chinese adults, and comparative data from the ASPEN trial focusing on this specific population is yet to be released.
Insmed has announced plans to present subpopulation data for Asian patients from the ASPEN trial at the CHEST 2024 Annual Meeting, taking place from October 6-9 in Boston, MA. The firm believes that this presentation will provide a clearer understanding of how HSK31858's data compares to brensocatib.
Although the early data from HSK31858 appears promising, H.C. Wainwright maintains that it does not alter their perspective on brensocatib's potential in the treatment of bronchiectasis. The analyst emphasized that HSK31858 is still far from potential approval and commercialization, reinforcing their position with a reiteration of the Buy rating and $90 price target for Insmed.
In other recent news, Insmed Incorporated reported a 20% increase in second-quarter revenue for Arikayce, reaching $90.3 million. Mizuho Securities and TD Cowen have revised their 12-month price targets for Insmed to $92.00 and $98.00, respectively, maintaining an optimistic stance. These adjustments reflect the positive market response to Insmed's drug brensocatib, which is expected to have a faster adoption curve than previously anticipated.
Analysts from H.C. Wainwright, Evercore ISI, and Mizuho Securities have expressed confidence in the success of brensocatib, leading to upward revisions in revenue and earnings expectations for Insmed. The company plans to file a New Drug Application for Brensocatib in the fourth quarter of 2024, with a U.S. launch planned by mid-2025.
Insmed has also initiated the redemption process for its $225 million 1.75% Convertible Senior Notes due in 2025, offering noteholders the option to convert their notes into common shares. Furthermore, Insmed retains full worldwide development and commercialization rights for brensocatib after concluding negotiations with AstraZeneca (NASDAQ:AZN) AB. These recent developments have led to an upward revision of Insmed's price targets by several financial firms, reflecting increased confidence in the success of brensocatib.
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