Insmed downgraded at Morgan Stanley despite FDA nod for lung therapy

[Wall Street sign in Lower Manhattan, NYC]
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* Morgan Stanley downgraded Insmed (NASDAQ:INSM [https://seekingalpha.com/symbol/INSM]) to Equal Weight from Overweight on Wednesday, citing concerns over the biotech’s valuation, a day after the FDA approved its lung disorder therapy, Brinsupri. [https://seekingalpha.com/news/4484032-insmed-stock-rises-fda-nod-for-lung-disorder-drug-brinsupri]
* On Tuesday, Bridgewater, New Jersey-based Insmed (NASDAQ:INSM [https://seekingalpha.com/symbol/INSM]) announced that the U.S. FDA approved the once-daily oral medicine for people older than 12 years with non-cystic fibrosis bronchiectasis, a chronic lung disorder.
* While noting that its “clean label and extensive launch preparations reinforce our confidence in the initial launch trajectory,” Morgan Stanley analyst Maxwell Skor downgraded INSM, arguing that the stock’s valuation mostly reflects the drug’s near-term opportunity.
* However, Maxwell raised his price target on Insmed (NASDAQ:INSM [https://seekingalpha.com/symbol/INSM]) to $126 from $112 per share, citing a potential label expansion for Brinsupri in chronic rhinosinusitis without nasal polyps, for which a mid-stage trial is ongoing with its data expected by the end of 2025.

MORE ON INSMED

* Insmed Incorporated 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4810771-insmed-incorporated-2025-q2-results-earnings-call-presentation]
* Insmed Incorporated (INSM) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4810770-insmed-incorporated-insm-q2-2025-earnings-call-transcript]
* Insmed: Company Presses On With Further POC PAH Treatment Data [https://seekingalpha.com/article/4793840-insmed-company-presses-on-further-poc-pah-treatment-data]
* Insmed wins FDA approval for lung disorder therapy Brinsupri [https://seekingalpha.com/news/4484032-insmed-stock-rises-fda-nod-for-lung-disorder-drug-brinsupri]
* Insmed outlines $405M–$425M ARIKAYCE revenue target as brensocatib nears launch and pipeline advances [https://seekingalpha.com/news/4482191-insmed-outlines-405m-425m-arikayce-revenue-target-as-brensocatib-nears-launch-and-pipeline]