Insmed Inc (INSM)

[TheFinalCD]

Now what
The only potential wrinkle in the data related to the drug's safety. The dropout rate for patients who used ALIS and GBT was 19.6%, which was a fair bit higher than the 9% dropout rate observed in the GBT group alone. Management stated that safety issues "were predominately mild or moderate in nature and generally declined after the second month of treatment."

To give investors more context on this issue, Dr. Paul Streck, Insmed's chief medical officer, offered this commentary:

The current guideline-based therapy to which we were compared in this study is not approved for the treatment of this disease, but is generally regarded as the best available option for these patients. Our drug candidate, ALIS, delivers high levels of an aminoglycoside directly to the lung macrophages and pulmonary tissue where the infection resides, and we believe this accounts for the significant impact on conversion that the drug demonstrated in these trial results.

All in all, today's clinical update clearly provides investors with reasons to be bullish on the future of Insmed. Risk-loving investors might want to consider putting this small-cap biotech on their watchlist.