Insmed (INSM) AI Stock Analysis

• Market Cap: $18.90B
• Dividend Yield: N/A
• Average Volume (3M): 4.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 20.77%
• EPS Growth: -13.60%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.42
• Shares Outstanding: 189,951,420
• 10 Day Avg. Volume: 6,931,991
• 30 Day Avg. Volume: 4,738,633
• PEG Ratio: 2.85
• Price to Book (P/B): 187.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -23.70
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 13.73
• Enterprise Value/Gross Profit: 66.99
• Enterprise Value/Ebitda: -6.04
• 1Y Price Target: $110.69
• Price Target Upside: 11.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 56 Neutral
• Price Target: $94.00 ▼(-5.52%Downside)

The most significant factor affecting Insmed's stock score is its financial performance, characterized by consistent losses and high leverage. Technical analysis offers a mixed outlook, with some bullish momentum but overbought conditions. Valuation remains unattractive due to negative earnings. However, recent corporate events, such as successful clinical trial results and shareholder backing, provide positive momentum.

Positive Factors

Clinical Trial Success

Insmed reported Ph.2b PAH data with TPIP that exceeded all expectations, with a statistically significant and clinically meaningful 6MWD benefit.

Efficacy and Safety

The strong Ph2b efficacy and safety data should well position TPIP for advancement into Ph3.

Market Potential

TPIP sales are projected to outpace brensocatib, with an edge in the market due to the commercial success of similar products.

Negative Factors

Competition

Threats from other treprostinil developers are likely minimal, with Insmed highlighting its considerable due diligence on TPIP’s IP.

Regulatory Challenges

Mgt. to discuss Ph3 PAH trial design with regulators immediately.

Insmed Business Overview & Revenue Model

Company Description

Insmed Incorporated, a biopharmaceutical company, develops and commercializes therapies for patients with serious and rare diseases. The company offers ARIKAYCE for the treatment of Mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients. It is also developing Brensocatib, an oral reversible inhibitor of dipeptidyl peptidase 1 for the treatment of patients with bronchiectasis and other neutrophil-mediated diseases; and Treprostinil Palmitil Inhalation Powder, an inhaled formulation of a treprostinil prodrug treprostinil palmitil for the treatment of pulmonary arterial hypertension and other rare pulmonary disorders. Insmed Incorporated was founded in 1988 and is headquartered in Bridgewater, New Jersey.

How the Company Makes Money

Insmed generates revenue primarily through the sales of its flagship product, ARIKAYCE. The company markets ARIKAYCE in the United States and has received approval for its use in several international markets. Revenue is driven by direct sales to healthcare providers and through distribution agreements with pharmaceutical distributors. Insmed also invests in research and development to expand its product pipeline, which could lead to future revenue streams as new therapies are developed and commercialized. Strategic partnerships and collaborations with other biopharmaceutical companies contribute to the company's revenue by leveraging shared expertise and resources to advance its product offerings.

Insmed Financial Statement Overview

Summary

Insmed is facing financial challenges with consistent net losses and negative margins. Revenue growth is encouraging, but high leverage and cash outflows present significant risks.

Income Statement

Insmed's income statement reveals a consistent negative net income over the years, with a net loss of $1.01 billion in the TTM period. Revenue has shown growth, reaching $381 million in the TTM, a positive sign with an approximate 5% growth from the previous year. However, the EBIT and EBITDA margins are negative, indicating operational inefficiencies and significant financial challenges.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio due to substantial debt levels and low equity. The equity ratio is weak at 5.5% in the TTM period, showing reliance on debt financing. Despite these negatives, the company has maintained a stable asset base, but the financial structure poses risks if revenue growth does not continue.

Cash Flow

The cash flow statement indicates substantial negative operating cash flow, with a free cash flow deficit of $789 million in the TTM. However, the company has been able to sustain itself through significant financing inflows. The operating cash flow to net income ratio remains negative, reflecting ongoing cash burn concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	381.03M	363.71M	305.21M	245.36M	188.46M	164.41M
Gross Profit	290.20M	277.96M	239.63M	190.23M	144.31M	124.54M
EBITDA	-930.50M	-814.14M	-660.18M	-429.44M	-375.09M	-250.37M
Net Income	-1.01B	-913.77M	-749.57M	-481.53M	-434.65M	-294.09M
Balance Sheet
Total Assets	1.80B	2.03B	1.33B	1.66B	1.24B	796.15M
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.43B	780.45M	1.15B	716.78M	532.76M
Total Debt	1.14B	45.49M	1.20B	1.18B	612.27M	404.84M
Total Liabilities	1.70B	1.74B	1.66B	1.57B	833.04M	520.27M
Stockholders Equity	99.16M	285.38M	-331.92M	87.95M	410.47M	275.88M
Cash Flow
Free Cash Flow	-789.25M	-705.80M	-549.53M	-410.32M	-370.59M	-226.17M
Operating Cash Flow	-761.93M	-683.88M	-536.25M	-400.44M	-363.30M	-219.35M
Investing Cash Flow	-798.08M	-583.17M	-223.60M	-34.58M	-64.28M	-6.82M
Financing Cash Flow	1.37B	1.34B	168.44M	793.27M	612.55M	271.00M

Insmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSM, the sentiment is Positive. The current price of 99.49 is above the 20-day moving average (MA) of 90.56, above the 50-day MA of 77.52, and above the 200-day MA of 74.68, indicating a bullish trend. The MACD of 8.47 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSM.

Insmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTHR	76 Outperform	$12.82B	11.34	19.94%	―	19.85%	21.16%
INCY	74 Outperform	$13.23B	211.54	0.47%	―	17.13%	-88.78%
CORT	72 Outperform	$7.76B	63.55	21.52%	―	30.93%	11.78%
BMRN	71 Outperform	$10.58B	20.47	9.64%	―	17.99%	152.10%
ITCI	63 Neutral	$14.05B	―	-8.58%	―	46.62%	50.50%
INSM	56 Neutral	$18.90B	―	-320.20%	―	20.77%	-13.60%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%

Insmed Corporate Events

Insmed Announces $650 Million Public Stock Offering

On June 11, 2025, Insmed announced the commencement and pricing of a public offering of its common stock, aiming to raise $650 million, with an option for underwriters to purchase additional shares. The offering, managed by Goldman Sachs and Leerink Partners, is expected to generate approximately $716.3 million in net proceeds, potentially impacting Insmed’s financial position and market operations.

The most recent analyst rating on (INSM) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed Announces Positive Phase 2b Study Results

On June 10, 2025, Insmed announced positive topline results from its Phase 2b study of treprostinil palmitil inhalation powder (TPIP) in patients with pulmonary arterial hypertension. The study, which met its primary and all secondary efficacy endpoints, demonstrated a 35% placebo-adjusted reduction in pulmonary vascular resistance and significant improvements in other key metrics. These results underscore TPIP’s potential as a highly effective, once-daily prostanoid therapy. Following these findings, Insmed plans to engage with the FDA to design a Phase 3 trial and aims to initiate further studies in late 2025 and early 2026. The announcement marks a significant advancement in PAH treatment, potentially impacting the company’s market positioning and offering new hope for patients.

The most recent analyst rating on (INSM) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed Completes Redemption of Convertible Senior Notes

On June 6, 2025, Insmed Incorporated completed the redemption of its 0.75% Convertible Senior Notes due 2028. The redemption involved paying cash for outstanding notes totaling $1,965,204.69, fulfilling the terms of the Indenture agreement.

The most recent analyst rating on (INSM) stock is a Buy with a $74.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed Shareholders Approve Key Proposals at Annual Meeting

On May 15, 2025, Insmed Incorporated, a company in the healthcare industry, held its annual meeting where shareholders approved several key proposals. These included the election of Class I directors, an advisory vote on executive compensation, the ratification of Ernst & Young LLP as the independent accounting firm, and the approval of Amendment No. 2 to the 2019 Incentive Plan. The approval of these proposals, particularly the amendment to the incentive plan, is expected to impact the company’s strategic direction and governance, reflecting shareholder support for the company’s leadership and future initiatives.

The most recent analyst rating on (INSM) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed’s Chief Commercial Officer Resigns for Personal Reasons

On April 16, 2025, J. Drayton Wise resigned as Chief Commercial Officer of Insmed Incorporated for personal and medical reasons, effective immediately. His resignation was not due to any issues with the company’s financial or operational results. Mr. Wise will continue to provide consulting services to Insmed until December 31, 2025, with possible extensions. He will receive a monthly consulting fee and his equity awards will continue to vest during this period.