Insmed’s phase 2 a ‘clearing event’, says Roth Capital

Roth Capital keeps a Buy rating and $212 price target on Insmed (INSM) after the company announced that its Phase 2b CEDAR study in hidradenitis suppurativa – HS – patients did not meet primary endpoint. The firm notes that this outcome was expected and that it had assigned 0% probability of success while excluding HS from estimates. Roth adds that it has no model changes following the update and views this announcement as a clearing event, noting that any stock weakness is seen as a buying opportunity.