Canaccord Genuity Initiates Coverage on Insmed with a Buy Rating and $12 PT on New Treatment for Lung Infections

In a report published by Canaccord Genuity, analyst Ritu Baral initiated coverage on Insmed INSM with a Buy rating and a $12 price target. Canaccord Genuity reported that, “Initiating coverage with BUY rating, $12 target on Arikace potential in two orphan indications: cystic fibrosis (CF) P. aeruginosa and nontuberculous mycobacteria (NTM) lung infections. INSM's lead candidate Arikace is a liposomal formulation of potent, FDA approved antibiotic amikacin. We expect positive data from an EU Ph3 trial of Arikace vs. current SOC TOBI (inhaled tobramycin) in CF patients (mid-2013) and a US Ph2 trial evaluating Arikace in NTM lung infections (data expected Q4/13). NTM is a larger market than CF with no approved therapies and may provide a quick path to market and premium pricing for Arikace. Our $12 target is based on pNPV analysis.” Shares of Insmed closed at $6.83 on Thursday.