Lung Disease Drug Sends Insmed’s Stock Soaring

lung disease

As of pre-market trading Tuesday, shares of Insmed Inc. (NASDAQ:$ INSM) more than doubled. This came after the company announced that its new drug, an inhaled antibiotic known as Alis, successfully treated patients with a rare lung disease.

A study done by the company involved 335 adult patients with nontuberculous mycobacterial lung infections. Nontuberculous mycobacterial lung infections are caused by a specific type of bacteria found in soil and water, causing cough, fever, and blood in the mucus. As of now, there is no approved treatment for these type of infections.

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Specifically, the results indicated that those receiving the medication reported a significant reduction in bacterial density by month six in 29% of the patients, compared to just 9% in those receiving standard treatment.

On Friday afternoon, Insmed closed at $12.29 per share. Today, Insmed stock has skyrocketed more than 140%, opening at $29.50 per share.

What’s next? Insmed plans to apply for accelerated approval for Alis. The FSA had already fast-tracked the drug, granting it breakthrough therapy designation.

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