Insmed stock blasts off over lung condition study results

Insmed Incorporated (INSM) stock is skyrocketing as high as 110% in Tuesday’s trading following positive results in the pharmaceutical company’s study into treating chronic lung condition bronchiectasis. Market Domination Hosts Julie Hyman and Josh Lipton monitor Insmed’s soaring stock price as it hopes to develop a range of use cases for a multitude of diseases.

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This post was written by Luke Carberry Mogan.

Video Transcript

In SMED.

This is not what we talk about frequently.

It’s a biotech company that announced positive results from a study of a drug to treat a rare lung condition that is called bronchi stasis.

Much better.

I’m glad you took a swing at that one.

So basically this is a lung inflammation and it affects, you know, not a huge amount of people but enough that analysts are very, very positive after seeing results of this study.

Yeah, I was really just in terms of Thailand Julie company apparently plans to file for us market clearance in the final quarter of the year, then launch in mid 20 tw 25 followed by launches in Europe and Japan.

I, you know, analysts seemed very positive.

I saw JP Morgan analyst quote as saying the findings are a home run scenario, say they see the results as transforming the company and unlocking a key driver of value and it sounds like in are plenty excited too.

Yeah, I mean reading between the lines here, some of the other analysts, one at Mizuho said that this should provide a huge sigh of relief for investors as we believe it helps to secure a more positive outlook on the company’s future.

So obviously, there was some concern over that the company has never turned a profit and it has been public for quite some time, about 10 years.

The other possibility here, as the company says in its statement is this maybe has the potential to address a range of neutrophil mediated diseases.

This is a certain type of inflammatory disorder.

So there could be potentially other applications.

I mean, that’s kind of the model with a wide range of drugs.

Now you you get it approved for one thing and then potentially it can be used for.

I saw another A I was also saying the company, you know, does have a fair amount of debt Julie.

So maybe I think their point was this rally we’re seeing here, gives them the chance to think creatively about some possible financing options too.

Makes sense.