Biotech stock Insmed on Tuesday rocketed to a 52-week high after the company said nearly 44% of patients with a lung infection improved after receiving its antibiotic treatment.
On the stock market today, Insmed stock soared to its highest point since August 2022. Shares jumped 16.5% to 26.37 in their biggest-ever volume, according to MarketSmith.com.
The company tested its antibacterial, dubbed Arikayce, in patients with nontuberculous mycobacterial lung infection. This group of bacteria causes rare lung infections most likely to impact people with a weak immune system or underlying lung condition.
Nearly 44% of patients who received Arikayce showed an improvement in respiratory symptoms vs. about a 33% of placebo recipients. Further, more Arikayce-treated patients tested negative for the bacteria after seven months of treatment than placebo recipients.
The news sent the biotech stock bounding off its 200-day moving average.
Biotech Stock: Massive Volume
Chief Medical Officer Martina Flammer called the results "a clear and unambiguous win" for the entire community of patients with nontuberculous mycobacterial lung infection.
Now, the company expects its Phase 3 study, known as Encore, will have positive results. If successful in the ongoing, later-stage study, Insmed will be able to ask for Food and Drug Administration approval for Arikayce in patients with nontuberculous mycobacterial lung infection.
Arikayce is currently approved for adults with a similar bacterial lung infection. Last year, Arikayce brought in $245.4 million in sales. Analysts following the biotech stock expect it to generate $300.7 million this year. By 2026, sales could be more than double that.
Insmed isn't highly rated, but the biotech stock has trended higher since March. Shares have a Relative Strength Rating of 76, according to IBD Digital. This means the biotech stock ranks in the top 24% of all stocks in terms of 12-month performance.
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