Insmed Inc. shares more than doubled after the company’s experimental drug reduced episodes of worsening symptoms in a final-stage study of patients with a rare lung condition.

Patients with bronchiectasis who received Insmed’s brensocatib had fewer exacerbations than those who got a placebo in the yearlong study, New Jersey-based Insmed said Tuesday in a statement. The company plans to file for US market clearance in the final quarter of the year and launch the drug in mid-2025.

The findings are a “home run scenario,” JPMorgan analyst Jessica Fye said in a note. “We see these results transforming the company and unlocking a key driver of value.”

The shares gained as much as 140% at the New York market open, the most in seven years, bringing the company’s market value to $7.3 billion.

Bronchiectasis causes widening and loosening of the airways in the lungs, along with accumulation of phlegm that can lead to bouts of coughing and breathing difficulty. Insmed’s drug inhibits DPP1, an enzyme involved in chronic lung inflammation and, if approved, would be the first to treat bronchiectasis, according to the statement.

“A huge unmet need exists for bronchiectasis,” Ritu Baral, an analyst at TD Cowen, said in a note to clients. Insmed’s data supports brensocatib’s approval, “likely driving a significant blockbuster market opportunity,” Baral said in the note.

Written by: @Bloomberg