BST Trade Alert – December 18, 2015
Recommendation:
Buy Insmed (NASDAQ: $INSM) up to $20.00 per share.
About the Company:
Insmed is a biopharmaceutical company focused on developing drugs to treat rare diseases. They are developing novel, targeted therapies to help service the unmet needs of these patients.
About the Drug:
Insmed currently has 1 drug, ARIKAYCE, in clinical testing.
ARIKAYCE is Liposomal Amikacin for Inhalation, or LAI. It is an investigational drug made up of the antibiotic amikacin in Insmed’s proprietary liposomal technology formulation.
ARIKAYCE is being investigated for treatment of serious lung infections such as those caused by NTM, through delivery of antibiotic directly to the site of the lung infection.
Insmed’s proprietary liposomal technology is designed specifically for delivery of pharmaceuticals to the lung. It aims to both retain amikacin in the lung, enabling once-daily dosing, and may allow for LAI to gain close access to bacteria within infected alveolar macrophages in the case of NTM lung infections.
LAI liposomes are readily taken up by macrophages whose normal function is to “swallow” inhaled particles. In so doing, amikacin is delivered where it is needed most.
The inhalation technology of LAI provides for delivery of amikacin directly to the site of infection in the lungs, minimizing systemic exposure to other organs.
About the Market for This Drug:
NTM or Nontuberculous Mycobacteria is considered to be a cousin of tuberculosis. NTM is found in the environment (soil and water) and can lead to serious lung infections.
There is no approved treatment for NTM in the US or European Union.
According to the American Lung Association, there are about 50,000 to 90,000 people with NTM pulmonary disease in the United States.
It occurs most often in older age groups. However, NTM can affect people of any age. In some people, NTM infections can become chronic and require ongoing treatment. Severe NTM lung disease can have a significant impact on quality of life.
About the Potential Catalyst:
ARIKAYCE completed the phase 2 study. It demonstrated statistical significance for key secondary endpoint of NTM negative culture at day 84.
It is now in a Phase 3 study. And a decision on a new marketing authorization is expected in the second half of 2016.
About the Shares:
INSM is currently trading for $17.95. The stock reached a high of $28.66 in August. The stock took a hit in September, along with the entire biotech industry.
The stock found support around $16.00 in November. It has begun moving higher again as investors have started to accumulate shares again.
This looks like a great buying opportunity for this developmental stage biotech stock. Look to pick up your shares below $20.00.
We could see some resistance around the 200-day moving average, currently $21.82. But positive news about the phase 3 trial should spark a rally back to the recent highs.
Key Facts:
Company: Insmed
Ticker: INSM
Recent Price: $17.95
Market Cap: $1.11 billion
Average Daily Volume: 557.38k
Chart:
Category: BST Trade Alert
