Insmed soars as rare lung disease drug succeeds in mid-stage trial; drags rivals down

Shares of drugmaker Insmed INSM.O rise 26% to $88.90

Co says its treprostinil palmitil inhalation powder met the main goal in a mid-stage trial by reducing blood flow resistance in the lungs by 35% when compared to placebo

The drug was tested in patients with Pulmonary Arterial Hypertension (PAH), a rare disease caused by a constriction of arteries in the lungs, leading to high blood pressure

*Insmed says it plans to start a separate late-stage trial for the drug in patients with pulmonary hypertension associated with interstitial lung disease (PH-ILD)

*PH-ILD is a condition where lung scarring leads to high blood pressure in the lung arteries

Rivals United Therapeutics UTHR.O and Liquidia LQDA.O, both of which have approved drugs for PH-ILD, fell 15.5% and 22.7%, respectively

Co says the treatment is administered once daily in a capsule-based inhalation device

INSM says it plans to initiate a late-stage trial for the drug in early 2026

Up to last close, stock up 2.4% YTD