Market Overview

Insmed Shares To Outperform Through 2018 After 'Slow Start,' Credit Suisse Says In Upgrade

Share:
Insmed Shares To Outperform Through 2018 After 'Slow Start,' Credit Suisse Says In Upgrade

Insmed Incorporated (NASDAQ: INSM) announced in late March that it has submitted a new drug application to the FDA for a non-tuberculous mycobacterial lung disease treatment.

The Analyst

Credit Suisse analyst Martin Auster upgraded the shares of Insmed from Neutral to Outperform and increased the price target from $27 to $33.

The Thesis

A significant unmet need and high intent to treat from clinicians could serve as a meaningful offset against the uncertainty and commercial risk for Insmed's ALIS, Auster said. The uncertainty comes from payer control of access to treatment for NTM lung disease caused by mycobacterium avium complex, the analyst said. 

ALIS is the standard of case for refractory NTM MAC, Auster said, citing results of a survey of 26 clinicians.

The symptomatic disease burden for severe NTM patients is comparable to idiopathic pulmonary fibrosis and cystic fibrosis, Auster said. Accordingly, the analyst projects ALIS commanding a premium price; Credit Suisse estimates the drug will sell for $108,000 per year.

Meaningful catalysts exist to drive upside for Insmed over the next six months, Auster said. The company is planning a strong presence — including a Phase 3 data oral presentation and several poster presentations — at the American Thoracic Society Conference May 18-23, the analyst said. 

Credit Suisse said an advisory committee is likely later this year and could offer hints as to whether ALIS will receive a broad label when it is possibly approved in late September.

The sell-side firm increases its sales and bottom-line estimates for Insmed in 2019. 

"We see a path for INSM to outperform over the balance of 2018 after a slow start this year," Auster said. 

The Price Action

Reacting to the upgrade, the shares were last seen trading up 8.93 percent to $25.62 Monday.

Related Links:

The Week Ahead In Biotech: PDUFA Dates, IPOs And More

Chardan: Assembly Biosciences Hep B Antiviral Data 'Positive,' But Undifferentiated From Competitor Johnson & Johnson

Latest Ratings for INSM

DateFirmActionFromTo
Sep 2019Initiates Coverage OnBuy
Feb 2019UpgradesMarket PerformOutperform
Jan 2019UpgradesNeutralBuy

View More Analyst Ratings for INSM
View the Latest Analyst Ratings

Posted-In: Credit Suisse Martin AusterAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (INSM)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
KHCUBSMaintains31.0
RPAYCantor FitzgeraldMaintains18.0
CMSCredit SuisseDowngrades
PBCTStephens & Co.Maintains15.5
TTECCowen & Co.Initiates Coverage On50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com