This drug developer also saw its shares pull back in the summer biotech rout, and though shares have rebounded, they still hold considerable upside, according to Wall Street analysts.
Lung disease is a potent killer, ranking as the third-leading cause of death behind heart disease and cancer, and taking more than 100,000 American lives every year. For many sufferers, existing treatments have proven ineffective, due to an inability to precisely target the damaged airways.
Insmed's Arikace could be a game-changer. It's an inhalable antibiotic that can be delivered right to the site of serious lung infections. Equally important, the drug doesn't circulate beyond the targeted site, which has led to very impressive safety results thus far in clinical testing.
Analysts at Lazard applaud management for designing clinical trials that help highlight the drug's efficacy and also meet the strict criteria for approval that has been established by the FDA. "The nuances of the trial design and endpoint selection versus current standard of care require a deeper understanding to appreciate why success is likely under a variety of potential outcomes," they note. Their $28 price target is 60% above current levels.