Insmed (INSM) Soars After Raising $650 million

We recently published a list of These 10 Stocks Are Flying High. In this article, we are going to take a look at where Insmed Inc. (NASDAQ:INSM) stands against other best-performing stocks on Wednesday.

Insmed jumped for a second day on Wednesday, adding 7.75 percent to close at $97.98 apiece following plans to raise $650 million through the issuance of more shares.

In a copy of the prospectus, Insmed Inc. (NASDAQ:INSM) said proceeds from the offer will be used to fund the continued research and development, pre-commercial, and commercialization of its drug candidates brensocatib, Arikayce, treprostinil palmitil inhalation powder (TPIP), and INSI201, among others. The remaining balance will be allocated for general corporate purposes, including business expansion.

Additionally, Insmed Inc. (NASDAQ:INSM) granted its underwriters the option to purchase up to an additional $97.5 million of its common stock.

The fundraising program followed Insmed Inc.’s (NASDAQ:INSM) promising results from the phase 2 trial of its pulmonary arterial hypertension (PAH) treatment, TPIP.

According to the company, the phase 2 trial achieved its primary and secondary goals for the treatment of reducing blood pressure in the lungs and improving exercise capacity in patients.

Insmed (INSM) Soars After Raising $650 million

A biopharmaceutical research team taking notes in front of a laboratory’s microscope.

Following the announcements, four investment companies, namely BofA Securities, RBC, Morgan Stanley, and Mizuho, gave a “buy” recommendation and “overweight” rating on its stock at a price target ranging from $102 to $110.

Overall, INSM ranks 10th on our list of best-performing stocks on Wednesday. While we acknowledge the potential of INSM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.