On Wednesday, Bofa Securities increased the price target for Insmed (NASDAQ:INSM) Incorporated (NASDAQ:INSM) shares, moving it up to $62 from the previous $40 while maintaining a Buy rating. The decision follows the release of positive results from a study on Insmed's novel DPP-1 inhibitor, brensocatib.
The analyst from BofA Securities described the study's outcome as a "watershed moment" for Insmed, highlighting the drug's robust efficacy, which showed a 20% placebo-adjusted reduction in exacerbations, and a benign safety and tolerability profile. The study's lead investigator anticipates swift adoption due to these results.
Brensocatib's mechanism of action (MoA) is considered possibly disease-modifying, which contributes to the optimism surrounding its potential. Despite some secondary endpoints not being met, such as severe pulmonary exacerbations (PEs), the analyst suggests that this may be attributed to overall low rates rather than an issue with the drug itself.
The positive data also lends credence to the broader potential of brensocatib in treating other conditions, including inflammation and immunity (I&I) diseases, cystic fibrosis, and certain subgroups of chronic obstructive pulmonary disease (COPD) and asthma. The analyst from BofA Securities believes this supports the notion of brensocatib's long-term opportunity and its likely transformative impact on Insmed.
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