Jefferies ups Insmed target on ‘blue sky scenario’ PAH data

Jefferies raised the firm’s price target on Insmed (INSM) to $121 from $105 and keeps a Buy rating on the shares. The firm thinks the company’s Phase 2 pulmonary arterial hypertension data hits the “blue sky scenario.” The 35% placebo adjusted pulmonary vascular resistance reduction represents the best efficacy on this endpoint in PAH, and the statistically significate 35.5 minute six-minute walk distance also beats expectations, the analyst tells investors in a research note. Jefferies believes the results set stage for pivotal trial success and could see physicians switch from Tyvaso in the future. It increased its peak revenue estimate from $1.6B to $2.6B for treprostinil palmitil inhalation powder.