Insmed's “Underperform” Rating Reaffirmed at Wedbush ...
Wedbush Downgrades Insmed (INSM) to Underperform, PT Slashed to $7
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.