Innovative Gene Therapy Approach Drives Buy Rating for Insmed in DMD Treatment

H.C. Wainwright analyst Andrew Fein has reiterated their bullish stance on INSM stock, giving a Buy rating on March 14.

Andrew Fein has given his Buy rating due to a combination of factors surrounding Insmed’s innovative approach in gene therapy. The company is developing a mid-length dystrophin gene therapy for Duchenne Muscular Dystrophy (DMD) using a novel RNA end joining technique. This method involves splitting large genes into two parts and packaging them into AAV vectors, which are then delivered to cells. The process facilitates the expression of a mid-length dystrophin protein that includes critical domains for proper dystrophin function.
Insmed’s approach has demonstrated promising results in preclinical models, showing successful expression in skeletal and cardiac muscles and improved muscle strength in DMD model mice. The incorporation of additional domains in the dystrophin protein could be crucial for restoring normal function, which distinguishes this therapy from other micro-dystrophin approaches. The potential for this technology to provide a more effective treatment for DMD, combined with its promising safety profile in preclinical trials, underpins Fein’s optimistic outlook and Buy rating for Insmed.

According to TipRanks, Fein is a 4-star analyst with an average return of 3.2% and a 41.38% success rate. Fein covers the Healthcare sector, focusing on stocks such as Palvella Therapeutics, Neurocrine, and Vertex Pharmaceuticals.

In another report released on March 14, J.P. Morgan also maintained a Buy rating on the stock with a $90.00 price target.