Promising Phase 2 Data and Market Potential Drive Buy Rating for Insmed’s TPIP in PAH Treatment

Analyst Kelly Shi from Jefferies maintained a Buy rating on Insmed (INSM – Research Report) and keeping the price target at $105.00.

Kelly Shi has given his Buy rating due to a combination of factors surrounding Insmed’s TPIP product for pulmonary arterial hypertension (PAH). The upcoming Phase 2 data for TPIP is anticipated to show a significant reduction in pulmonary vascular resistance (PVR), which is a primary endpoint. The analysis conducted by Shi and her team suggests a high likelihood of achieving a 20% PVR reduction, which is considered a clear win and could trigger a switch from the current standard, Tyvaso, to TPIP.
Moreover, TPIP offers a more convenient dosing regimen with once-daily administration compared to Tyvaso’s four times a day, which could enhance patient and physician adoption. The interim data also indicates a potential benefit in the six-minute walk distance (6MWD), further supporting its efficacy. With these promising factors, Shi models a significant market opportunity for TPIP, leaving room for positive adjustments in Insmed’s valuation.

In another report released on June 4, Wells Fargo also maintained a Buy rating on the stock with a $107.00 price target.

Based on the recent corporate insider activity of 120 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INSM in relation to earlier this year.