Insmed and Argenx Stock Movements
Insmed stocks jumped on Thursday following the release of Brin Supplement, which, despite falling short of Wall Street’s expectations for third-quarter sales, still showed impressive results. On the other hand, Argenx stocks decreased even after what was labeled as “another strong quarter” for its product, Vivgart.
Both biotech companies are considered highly valued, with Argenx featured on the IBD50 list. Interestingly, they both surpassed the highest sales forecasts. Insmed saw its stock rise 16.5%, reaching 194.42 shares, whereas Argenx experienced a slight decline, dropping 0.2% to 820.36 shares. Insmed’s stock hit its peak since October 2000.
Brin Supplement’s Strong Performance
The Brin Supplement is Insmed’s latest medication, approved in August for treating non-cystic fibrosis bronchiectasis (NCFB), a progressive lung ailment.
According to Joseph Schwartz, an analyst at Leerink Partners, Brin Supplement generated sales of $28.1 million in its first partial quarter. This figure surpassed expectations of $6.7 million to $7.7 million significantly.
“Brin Supplement is poised for remarkable success,” he noted, adding that the scale of its performance only reinforces the potential it holds.
By the end of September, around 2,550 patients had received treatment from about 1,700 physicians who prescribed at least one Brin Supplement. However, most prescribers wrote only one or two prescriptions.
Schwartz has rated Insmed’s stock as outperforming.
Increased Guidance for Arikayce
Schwartz also mentioned that roughly 40% of the company’s reported revenue comes from inventory purchases. Still, he emphasized that the sales figures are quite impressive for a product in its early days post-launch.
Currently, Arikayce is not on investors’ radar, yet it exceeded anticipations with sales of $114.3 million, topping the estimates of $108 million to $109 million.
Insmed expects Arikayce to achieve annual sales between $420 million and $430 million, which is roughly a $10 million increase from guidance given three months prior. Arikayce is an inhaled antibiotic used to treat a specific type of lung infection.
Analysts had predicted Arikayce sales of around $423.5 million for this year.
Overall, Insmed reported a loss of $1.75 per share on revenue of $114.3 million—while sales were strong, losses were greater than anticipated.
Upcoming Research Plans
Insmed has also announced the timetable for two new studies. They are testing brensocatib, the active ingredient in Brin Supplement, for chronic sinusitis and hidradenitis suppurativa without nasal polyps.
Results are expected in early January and the first half of 2026, respectively.
The company plans to start testing their experimental drug, treprostinil palmityl inhalation powder (TPIP), in late 2026 for progressive pulmonary fibrosis and idiopathic pulmonary fibrosis. This drug could be comparable to existing treatments approved in the U.S.
Analyst Leonid Timashev from RBC Capital Markets stated that Insmed is well-positioned for growth, addressing both short-term and long-term potential.
Argenx Faces Stock Decline
Conversely, Argenx’s stock fell despite surpassing expectations for the third quarter.
Argenx is primarily recognized for its products Vyvgart and Vyvgart Hytrulo, which treat various immunological conditions. Vyvgart, delivered via intravenous infusion, addresses generalized myasthenia gravis, while Hytrulo, a subcutaneous version, is approved for gMG and chronic inflammatory demyelinating polyneuropathy (CIDP).
Analyst Thomas Smith at Leerink Partners noted that Argenx plans to seek FDA approval for Vyvgart targeting three subtypes of gMG by the end of the year, maintaining an Outperform rating.
The combined sales of the two drugs totaled $1.13 billion, exceeding expectations of between $1.03 billion and $1.06 billion, as reported by William Blair analyst Miles Minter.
Adjusted earnings came to $4.60 per share, also surpassing the forecast of $4.52 per share.
“This marks five consecutive profitable quarters for Argenx, with cash reserves rising to $4.3 billion, an increase of $400 million,” Minter noted.
Performance of Biotech Stocks
Argenx ranks No. 49 on the IBD 50 Elite Growth Stocks list and boasts a robust IBD Digital Composite Rating of 98. This rating, which ranges from 1 to 99, evaluates a stock’s fundamental and technical metrics and compares it to others in the market.
Insmed shares have more than doubled this year, largely due to enthusiasm around TPIP. Insmed has a Composite Rating of 78 and a Relative Strength Rating of 96, indicating it’s performed in the top 4% of all stocks over the past year.
Overall, stock prices reached a 25-year high.
