William Blair initiated coverage on Insmed Incorporated (NASDAQ:INSM), citing that the clinical and commercial execution of its drugs can significantly increase Insmed's valuation.
“While acknowledging that shares of Insmed are up over 450% (versus a 2% increase for the XBI) since the positive Phase III results with Brinsupri in bronchiectasis, we believe the potential for a strong commercial launch of Brinsupri in the multi-blockbuster bronchiectasis indication will keep Insmed as a ‘must-own’name for investors.”
Analyst Matt Phipps highlights the commercial potential for Brinsupri, Arikayce, and TPIP.
Also Read: Lung Disease-Focused Insmed ‘Is An Attractive Midcap Biotech,’ Analyst Says
Most recently, the U.S. Food and Drug Administration (FDA) approved Insmed’s Brinsupri (brensocatib 10 mg and 25 mg tablets) as an oral, once-daily treatment for non-cystic fibrosis bronchiectasis (NCFB) in adults and children 12 years and older.
Brinsupri is the first and only FDA-approved treatment for NCFB, a chronic lung condition characterized by permanently widened and damaged airways (bronchi), leading to persistent mucus production, recurrent infections, and difficulty breathing.
Topline results from its Phase 2b study of treprostinil palmitil inhalation powder (TPIP) for pulmonary arterial hypertension met its primary endpoint and all secondary efficacy endpoints.
For the primary endpoint, the placebo-adjusted reduction from baseline in pulmonary vascular resistance (PVR) was 35%, with a Least Squares (LS) mean ratio of 0.65.
In an investor note on Tuesday, Analyst Phipps initiated coverage with an Outperform rating and wrote that upcoming trial readouts for Brinsupri, Arikayce, and TPIP could unlock new indications, supporting market expansion and boosting Insmed's peak sales potential, which could approach $15 billion by 2035.
William Blair said Insmed could see continued upside as it evolves into a leading large-cap biotech. While a future takeover remains possible, the firm sees strong value in its sizable market opportunities and de-risked clinical programs.
William Blair predicts that the strong initial launch of Brinsupri will command a valuation of roughly five times the five-year sales forecasts, as investors gain confidence in the multi-blockbuster market opportunity. It sees upside for shares into 2026 based on five times the 2031 revenue estimate of $7.7 billion.
Price Action: INSM stock is up 1.84% at $129.55 at the last check on Wednesday.
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