Insmed EU update to provide near-term floor, says Piper Jaffray
Piper Jaffray attributes today's pullback in shares of Insmed to the company not immediately filing for U.S. approval of Arikayce in cystic fibrosis and nontuberculous mycobacteria. However, Piper believes the earlier than expected European filing will provide a near-term floor for shares. The firm also says the Phase 2 improvement in 6MWD in the Arikayce arm should "put to rest much of the debate over the drug's clinical utility." Piper reiterates an Overweight rating on Insmed with a $51 price target.
Ol' Wedbush hit the proverbial nail on the head - Great call as everything came to fruition...
2/11/2014 - "Wedbush downgraded Insmed (NASDAQ: INSM) from Outperform to Underperform with a price target of $7.00 (from $18.00). Analyst Gregory R. Wade adjusted his model to reflect the timing associated with a U.S. Phase III for NTM approval.
"At $19 per share, we believe INSM’s stock has significant expectations baked in for an FDA-approvable result from the Phase II Nontuberculous Mycobacteria (NTM) lung infection study. Our review of the study design suggests to us that there will be insufficient data for the FDA to approve in this setting, and we are therefore modifying our model to incorporate a subsequent Phase III study with our new launch timing pegged at mid:18 vs. our previous early:16 estimate. With the changes to our model (including a future financing), and revised 2018 valuation year, our price target goes to $7 from $18," said Wade.
For an analyst ratings summary and ratings history on Insmed click here. For more ratings news on Insmed click here.
Shares of Insmed closed at $19.11 yesterday.
As you can see there are actually some here who Would believe such a thing! PT Barnum was right!
"Piper J $51 !-who would believe such a thing ?by terry_insm • Apr 25, 2014
The PJ trade was obvious to most of us traders and perhaps now, even the hypsters of this MB see it.
The sentiment soared! and MM who needed shares had PJ-dchbag do the pitching."