Insmed (INSM) Stock Rockets On Trial Results

Insmed INSM Stock News

Insmed Incorporated (NASDAQ: INSM) is rocketing in the market this morning, trading on gains of nearly 50% in the premarket. The gains come after the company announced top-line data from a Phase 2 trial of INS1007. Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

INSM Stock Pops On Clinical Data

In a press release issued early this morning, Insmed announced positive clinical data from a Phase 2 trial. The trial, known as the WILLOW study was designed to evaluate the safety, efficacy and pharmacokinetics of INS1007.

During the study, adult participants received the treatment once daily as a potential option for non-cystic fibrosis bronchiectasis, also known as NCFBE.

In the release, INSM said that the trial met its primary endpoint. The endpoint involved the time to first pulmonary exacerbation over the 24-week treatment period when compared to placebo. The company said that this endpoint was met with both, 10 mg and 25 mg doses.

Not only did the treatment result in more time to pulmonary exacerbation, the company said that a reduction in the frequency of pulmonary exacerbations was experienced in treated patients. This was a key secondary endpoint of the trial.

All in all, INS1007 proved to be well tolerated. In fact, less patients experienced discontinuation due to adverse events in both treatment arms than seen in the placebo arm.

Finally, the company said that it plans on presenting detailed study results at an upcoming medical meeting. Moreover, the company will provide more details with its coming fourth quarter and year end 2019 results.

In a statement, Will Lewis, Chairman and CEO at INSM, had the following to offer:

The entire Insmed team is elated by the positive results observed in this study. This is a day of incredible promise for the hundreds of thousands of patients around the world who currently suffer from NCFBE. We believe these results further validate both our business and clinical development capabilities. With INS1007, Insmed has a unique and significant opportunity with a potential first-in-class therapy for NCFBE. There are currently no approved therapies specifically targeting this severe and chronic pulmonary disease in the United States, Europe, or Japan.

Why The Stock Is Rocketing

It’s common for clinical stage biotechnology companies to release clinical results. What’s not so common is such a dramatic rise in value, like what we’re seeing from Insmed. So, what’s the deal?

Well, there are a couple of factors at play here. First and foremost, before the data release, INSM was a pretty heavily shorted stock. This means that any positive news has the potential to lead to a short squeeze, which is likely taking hold as we speak.

With that said, the results were overwhelmingly positive. Not only did the company meet its primary and secondary endpoints in the trial, the treatment is addressig a condition that is incredibly difficult to treat. As such, if all continues to go well, INSM could be sitting on a figurative goldmine.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story!

Join our free mailing list below to receive real-time news alerts!

Subscribe Today!

* indicates required

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.