While the drug was well tolerated with no new safety concerns, the drug yielded no positive treatment benefits in a study even at its highest dose of 40 mg.
- Insmed subsequently decided to discontinue the program with immediate effect.
- The company also announced that it has acquired a new experimental drug called INS1148.
- The new drug adds to the company’s pipeline, the most advanced of which are in pulmonary and inflammatory conditions.
Shares of Insmed Incorporated (INSM) slumped nearly 17% in after-hours trading on Wednesday after the company said that its mid-stage stage study of Brensocatib in patients with chronic rhinosinusitis without nasal polyps did not meet its defined goals.
While the drug was well tolerated with no new safety concerns, the drug yielded no positive treatment benefits in the study even at its highest dose of 40 mg, the company said. The failed study was conducted across 104 sites globally and enrolled a total of 288 patients
Insmed subsequently decided to discontinue the program with immediate effect. "While we are disappointed in the results, they provided us with a clear answer,” Chief Medical Officer of Insmed Martina Flammer said.
Gearing Forward With New Acquisition
Bridgewater, New Jersey-headquartered Insmed also announced on Wednesday that it has acquired a new experimental drug called INS1148 with potential in addressing respiratory and immunological and inflammatory diseases. The company now plans to advance mid-stage development plans for the drug initially in interstitial lung disease and moderate-to-severe asthma.
The drug was developed by privately held pharmaceutical company Opsidio and formerly known as OpSCF.
The drug adds to the company’s pipeline, the most advanced of which are in pulmonary and inflammatory conditions.
Pipeline And Approvals
Last month, the European Commission approved the company’s Brinsupri for the treatment of a chronic and progressive lung disease non-cystic fibrosis bronchiectasis in patients 12 years of age and older. It is the only approved treatment for the condition in the European Union.
Brinsupri was approved by the U.S. Food and Drug Administration for the treatment of the condition in August. Non-cystic fibrosis bronchiectasis is a chronic lung condition where airways become permanently widened and damaged, leading to a vicious cycle of mucus buildup, infection, inflammation, and cough with sputum.
Analyst Optimism Dampened
Cantor Fitzgerald had raised the price target on Insmed to $230 from $216 on Wednesday in anticipation of the trial results. The analyst, who kept an ‘Overweight’ rating on the shares, had termed the study results as the stock’s “next important catalyst” and had said that it sees a "good chance" of Brensocatib showing a benefit in chronic rhinosinusitis without nasal polyps.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around Insmed stayed within the ‘bullish’ territory over the past 24 hours while message volume stayed at 'high' levels.
INSM stock has nearly tripled this year.
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