12 Best Biotech Stocks To Invest In According To Hedge Funds

2. Insmed Incorporated (NASDAQ:INSM) 

Number of Hedge Fund Holders: 74

Insmed Incorporated (NASDAQ:INSM), a biopharmaceutical company, produces medical products and distributes them in the United States, Europe, Japan, and internationally for individuals with lung diseases. Its first product, Arikayce, has a sizable addressable market and is intended for patients with refractory nontuberculous mycobacteria (NTM) lung illness.

Recently, the company conducted a phase 3 trial for patients with bronchiectasis to test Brensocatib, another medication. Investors were encouraged by the trial’s excellent results, which showed a reduction in pulmonary exacerbations, especially considering the drug’s significantly larger potential market.

Artisan Mid Cap Fund stated the following regarding Insmed Incorporated (NASDAQ:INSM) in its Q2 2024 investor letter:

“During the quarter, we initiated new GardenSM positions in CCC Intelligent Solutions, Marvell Technology and Insmed Incorporated (NASDAQ:INSM). Insmed is a commercial stage biotech company focused on serious pulmonary diseases. Its first commercial product, Arikayce, is an inhaled antibiotic for the treatment of lung disease in patients who haven’t responded to conventional treatment. But the company also has a late-stage pipeline asset, Brensocatib, which treats bronchiectasis (a chronic, progressive inflammatory disease that causes permanent lung damage) and other neutrophil-mediated diseases. Over one million patients in the US, Europe and Japan have been diagnosed with bronchiectasis, and limited treatment options make this one of the biggest unmet medical needs within respiratory disease. Our research suggests that Brensocatib has multi-billion-dollar sales potential and may even be able to treat other serious respiratory illnesses. We decided to initiate a position following positive phase 3 clinical trial results.”

H.C. Wainwright analyst Andrew Fein restated his buy recommendation on the biopharmaceutical company with a $90 price target, also pointing to the robust market potential of brensocatib, which is almost ready for launch and has no rivals at the moment, and downplaying the threat of competition.

The second quarter of 2024 experienced Arikayce’s global revenue jump by 17% YoY. This growth was driven by double-digit year-over-year growth in the U.S., Japan, and Europe, as well as record-breaking revenue levels in each of these three regions.

James E. Flynn’s Deerfield Management is the shareholder in the company, with 151,408,000 shares worth $258.67 million.