INSM - Insmed Strikes Gold With Phase 3 Bronchiectasis Win (Rating Upgrade)

2024-05-28 12:10:00 ET

Summary

• Brensocatib, Insmed's DPP1 inhibitor, showed significant efficacy in the Phase 3 ASPEN study for treating NCFB.
• Insmed's financial position includes high R&D costs with a solid short-term liquidity ratio but substantial long-term debt.
• Peak revenue estimates for brensocatib range from $1-5 billion, with a reasonable midpoint of $3 billion expected.
• Investment recommendation: Buy Insmed stock, as brensocatib's potential in NCFB offers compelling upside despite significant risks.

Insmed's Phase 3 Success: Brensocatib's Promising Future

In my previous article on Insmed ( INSM ), I highlighted robust revenue growth from their lead drug, Arikayce, for the treatment of mycobacterium avium complex [MAC] lung infections, but also noted their high R&D costs for difficult-to-treat conditions with high attrition rates, such as bronchiectasis. I recommended a "hold" based on the combination of financial and operational risk and reward....

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