Maintaining Buy on Insmed: Brensocatib Setback Offset by Strong Brinsupri Launch, Diversified Pipeline, and Near-Term Catalysts

William Blair analyst Matt Phipps has reiterated their bullish stance on INSM stock, giving a Buy rating today.

Matt Phipps has given his Buy rating due to a combination of factors that, in his view, outweigh the setback in chronic rhinosinusitis without nasal polyps (CRSsNP). While the Phase IIb BiRCh trial for brensocatib in CRSsNP failed and led to the removal of that indication from his valuation model, he notes the absence of new safety concerns even at higher doses, which supports the overall profile of the drug. He also frames the post-announcement share-price decline as a reversal of a strong multi-month rally that had already priced in some expectation for success in this indication, rather than a thesis-breaking event. In parallel, he highlights that Insmed has broadened its pipeline with the acquisition of INS1148, a Phase II-ready antibody targeting SCF248, which adds another potential value driver.

Phipps emphasizes that the core investment case remains intact, anchored by what he expects to be a robust launch for Brinsupri in bronchiectasis, where the drug is already approved and the commercial trajectory appears favorable. He further points to Arikayce and TPIP as key programs with additional room for growth, supporting a diversified set of revenue and pipeline opportunities despite the CRSsNP disappointment. His earnings projections for Arikayce and Brinsupri are largely in line with consensus, reinforcing his confidence in near-term fundamentals. He also flags the upcoming fourth-quarter results and potential sales guidance as important catalysts that could help reestablish positive momentum in the stock, supporting his decision to maintain a Buy recommendation.

In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $212.00 price target.

Based on the recent corporate insider activity of 161 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of INSM in relation to earlier this year.