What Analysts Have To Say About Insmed Following Arikayce Approval

Insmed Incorporated INSM stock crashed Monday after the U.S. Food & Drug Administration approved the company’s antibiotic Arikayce. In addition to “sell the news” traders moving on following the FDA approval, some sellers are likely concerned about the revelation that some Arikayce cause lung issues “led to hospitalizations in come cases."

Several Wall Street analysts weighed in on Insmed. Here’s a sampling of what they had to say.

Voices From The Street

H.C. Wainwright analyst Andrew Fein said the good news of the FDA approval was widely anticipated, whereas the black box warning about lung-related hospitalizations was not.

“We think the boxed warning, inevitably casted a layer of uncertainty around the uptake of Arikayce in the eyes of investors (buysiders must now re-survey physicians seeking the degree to which the black box warning will impact penetration),” Fein wrote.

Credit Suisse analyst Marty Auster said investors should expect Insmed stock to recover in coming months.

"We are comfortable with Arikayce’s initial prospects as the drug is intended for a high unmet need population (refractory NTM MAC patients) without treatment options,” Auster wrote.

Stifel analyst Adam Walsh said investors should be concerned about the black box warning and should expect robust Arikayce uptake.

“Regardless, we see solid value in INSM shares at current levels based on the Arikayce refractory opportunity alone, independent of planned future label-expansion possibilities (i.e. front-line, maintenance, etc.),” Walsh wrote.

Ratings And Targets

Insmed's stock closed at $15.74, down 22.16 percent.

Despite Monday’s sell-off, most analysts are still bullish about Arikayce and Insmed:

• H.C. Wainwright has a Buy rating and $43 target.
• Credit Suisse has an Outperform rating and $35 target.
• Stifel has a Buy rating and $43 target.

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