Insmed (INSM) AI Stock Analysis

• Market Cap: $31.04B
• Dividend Yield: N/A
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 30.34%
• EPS Growth: -11.26%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.54
• Shares Outstanding: 215,551,900
• 10 Day Avg. Volume: 2,036,736
• 30 Day Avg. Volume: 2,249,575
• PEG Ratio: -1.93
• Price to Book (P/B): 50.31
• Price to Sales (P/S): 61.31
• P/FCF Ratio: -38.43
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 51.60
• Enterprise Value/Gross Profit: 64.98
• Enterprise Value/Ebitda: -26.60
• 1Y Price Target: $206.79
• Price Target Upside: 43.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): -2.71
• Revenue Forecast (FY): $1.69B

• Rating: 58 Neutral
• Price Target: $150.00 ▲(4.18% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by very large ongoing losses and cash burn, plus weak technical momentum. Offsetting these, management’s bullish 2026 guidance and strong commercial execution signals, along with positive ENCORE results that may expand ARIKAYCE’s market, provide meaningful upside catalysts despite valuation being constrained by current unprofitability.

Positive Factors

Strong Revenue Growth & High Gross Margins

Sustained high gross margins (~76–80%) paired with accelerating revenue give Insmed durable product-level economics. This supports scalable profitability as sales ramp, enabling operating leverage: higher margins cushion SG&A/R&D investment and improve the odds of reaching cash-flow breakeven as volumes grow.

Brinsupri Commercial Momentum and Payer Access

A rapid commercial launch with strong early revenue and management guidance to $1B in 2026 reflects durable market traction. Combined with high payer access (>90%) and favorable gross-to-net guidance, this suggests a sustainable revenue runway and predictable reimbursement that can materially fund growth and reduce external financing needs.

Positive ENCORE Results and Potential Label Expansion

Meeting ENCORE endpoints and fulfilling an FDA post‑marketing requirement materially de-risks ARIKAYCE and supports a supplemental filing. A successful label expansion into earlier-stage MAC disease would structurally enlarge TAM by multiples, sustaining long-term product growth and diversifying revenue beyond the current refractory cohort.

Negative Factors

Substantial and Rising Cash Burn

Large negative operating and free cash flows are persistent and growing, creating structural funding needs absent rapid margin improvement. This elevates reliance on external capital or M&A financing, increasing dilution or leverage risk if revenue ramps or reimbursement timing slip versus plan, and pressures liquidity over 2–6 months.

Wide Operating Losses Despite Growth

Even with strong top-line growth, operating losses remain very large, indicating the cost base (R&D, SG&A, launch expenses) outpaces current scale. Persistently negative returns on equity could impair capital durability and force strategic tradeoffs between growth and profitability if operating leverage fails to materialize as revenue scales.

Shallow Prescriber Depth & Payer Friction

Early adoption is broad but shallow: many physicians have prescribed to only one patient, and payer documentation requirements create ongoing administrative friction. These structural adoption and access hurdles can slow refill rates, constrain sustainable per-physician revenue, and prolong the time to steady-state cash generation.

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 primarily makes money by selling its commercial product, ARIKAYCE. Revenue is generated from product sales to wholesalers/specialty distributors and other customers in the geographies where ARIKAYCE is marketed; net product revenue is affected by customary deductions such as rebates, discounts, chargebacks, returns, and other allowances. The company’s overall earnings and cash generation are therefore largely driven by prescription demand, patient access and reimbursement coverage (e.g., payer decisions and prior authorization requirements), and the continued ability to maintain and expand utilization in the indicated patient population. Insmed may also generate revenue from collaborations, licensing arrangements, or milestone payments when applicable; if present, such amounts would be recognized per the terms of the related agreements and can meaningfully impact results in periods when milestones are achieved, but specific partnership revenue details are null.

Insmed Financial Statement Overview

Summary

Strong and accelerating revenue growth with high gross margins and a much improved balance sheet after a sharp debt reduction. Offsetting this, operating losses and free-cash-flow burn remain extremely large and increasing, keeping the near-term profile dependent on scaling revenue faster than operating costs.

Income Statement

Revenue growth is strong, accelerating materially in 2025 (annual revenue up ~36% to ~$606M), and gross margins remain attractive (~76–80%), reflecting solid product-level economics. However, operating losses remain very large and are widening (2025 EBIT and net loss both around -$1.25B), keeping net margins deeply negative and indicating the cost structure is still far ahead of the current revenue base.

Balance Sheet

Leverage improved dramatically in 2025 as total debt fell to ~$46M from >$1.3B in 2024, bringing debt levels down to a conservative ~0.06x equity. Equity also strengthened to ~$739M (from ~$285M in 2024 and negative in 2023), improving balance-sheet stability. The key weakness remains persistently negative returns on equity driven by ongoing net losses, which continue to pressure longer-term capital durability if losses persist.

Cash Flow

Cash burn is substantial and rising: 2025 operating cash flow was about -$935M and free cash flow about -$968M (worse than 2024), indicating increasing funding needs. While free cash flow is roughly in line with net losses (cash outflow broadly tracking earnings losses), the company is not close to self-funding operations yet, leaving results highly dependent on external capital and/or a step-change in profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	606.42M	363.71M	305.21M	245.36M	188.46M
Gross Profit	481.55M	277.96M	239.63M	190.23M	144.31M
EBITDA	-1.17B	-818.79M	-660.18M	-447.37M	-383.65M
Net Income	-1.28B	-913.77M	-749.57M	-481.53M	-434.65M
Balance Sheet
Total Assets	2.26B	2.03B	1.33B	1.66B	1.24B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.43B	780.45M	1.15B	716.78M
Total Debt	768.16M	1.31B	1.20B	1.18B	612.27M
Total Liabilities	1.53B	1.74B	1.66B	1.57B	833.04M
Stockholders Equity	738.98M	285.38M	-331.92M	87.95M	410.47M
Cash Flow
Free Cash Flow	-967.58M	-705.80M	-549.53M	-410.32M	-370.59M
Operating Cash Flow	-935.01M	-683.88M	-536.25M	-400.44M	-363.30M
Investing Cash Flow	-64.58M	-583.17M	-223.60M	-34.58M	-64.28M
Financing Cash Flow	954.07M	1.34B	168.44M	793.27M	612.55M

Insmed Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 143.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 143.98 is below the 20-day moving average (MA) of 144.70, below the 50-day MA of 152.15, and below the 200-day MA of 148.12, indicating a bearish trend. The MACD of -3.58 indicates Negative momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 44.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INSM.

Insmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCY	75 Outperform	$18.00B	14.98	29.15%	―	18.09%	3563.21%
RPRX	75 Outperform	$26.31B	21.65	11.89%	2.23%	3.72%	-31.46%
BMRN	68 Neutral	$10.54B	32.67	5.82%	―	12.31%	60.21%
GMAB	66 Neutral	$15.82B	19.82	14.32%	―	24.98%	127.06%
INSM	58 Neutral	$31.04B	―	-168.36%	―	30.34%	-11.26%
BNTX	57 Neutral	$22.22B	-17.95	-6.03%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Insmed Corporate Events

Insmed Reports Positive Phase 3b ENCORE ARIKAYCE Results

On March 23, 2026, Insmed reported positive topline results from its Phase 3b ENCORE study of ARIKAYCE plus standard multidrug therapy in patients with newly occurring MAC lung infection who had not previously received antibiotics. The trial met its primary endpoint, showing a statistically significant improvement in respiratory symptom scores at Month 13, and achieved all multiplicity-controlled culture conversion endpoints, with faster and more durable bacterial clearance than placebo regimens.

The safety profile in ENCORE was consistent with known ARIKAYCE risks, with more dysphonia, cough, bronchospasm, and hypersensitivity pneumonitis in the ARIKAYCE arm but no new safety signals and no deaths attributed to treatment, while completion rates exceeded 90% in both groups. With these data, Insmed has fulfilled an FDA post-marketing requirement and plans in the second half of 2026 to seek a supplemental U.S. approval and Japanese label expansion for ARIKAYCE in MAC lung disease, potentially broadening its commercial reach and treatment role earlier in the disease course.

The most recent analyst rating on (INSM) stock is a Hold with a $148.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed director McGirr to step down after 2026 meeting

On February 17, 2026, director David W.J. McGirr informed Insmed’s board that he will not stand for re-election at the 2026 annual meeting, though he will remain on the board and continue chairing the audit committee until then, and the company said his departure is not related to any disagreement. For 2025, Insmed reported total revenues of $606.4 million, including $433.8 million from ARIKAYCE, which grew 19% year over year and exceeded guidance, and $172.7 million from BRINSUPRI, while ending the year with about $1.4 billion in cash and equivalents.

Management highlighted strong early uptake of BRINSUPRI following its November 2025 approval in Europe for non-cystic fibrosis bronchiectasis and projected at least $1 billion in BRINSUPRI revenue in 2026, alongside reiterating 2026 ARIKAYCE guidance of $450 million to $470 million. The company also advanced a broad pipeline, securing U.S. orphan drug designation for TPIP’s active ingredient treprostinil palmitil in pulmonary arterial hypertension, progressing multiple Phase 3 respiratory studies and gene therapy programs in Duchenne muscular dystrophy and ALS, and preparing new trials and regulatory filings that could expand its presence across respiratory, immunology, and rare disease markets.

The most recent analyst rating on (INSM) stock is a Buy with a $211.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed Announces Strong 2025 Results and Pipeline Progress

On January 9, 2026, Insmed reported strong preliminary unaudited 2025 financial results and pipeline progress ahead of its January 12, 2026 presentation at the J.P. Morgan Healthcare Conference, highlighted by a landmark first full year for BRINSUPRI and continued growth of ARIKAYCE. BRINSUPRI generated approximately $144.6 million in unaudited revenue in its first full quarter and $172.7 million for full-year 2025 in the U.S., with roughly 4,000 prescribers and about 9,000 new patients initiating therapy in the fourth quarter, while ARIKAYCE delivered about $433.8 million globally in 2025, exceeding guidance and driving total company revenues to approximately $606.4 million, a 67% year-on-year increase. The company outlined an aggressive 2026 roadmap, including an anticipated EU launch of BRINSUPRI following its November 2025 European Commission approval for non-cystic fibrosis bronchiectasis and planned launches in the U.K. and Japan, expected 2026 global ARIKAYCE revenues of $450 million to $470 million, and key clinical milestones: topline Phase 3 ENCORE data in MAC lung disease in March–April 2026, Phase 2b CEDAR data for brensocatib in hidradenitis suppurativa in the second quarter of 2026, initiation and expansion of multiple Phase 3 TPIP trials across PH-ILD, PAH, PPF, and IPF, and the acquisition of Phase 2–ready monoclonal antibody INS1148, collectively signaling a rapid expansion of its respiratory and inflammatory disease franchise and a potentially stronger competitive position for shareholders and patients alike.

The most recent analyst rating on (INSM) stock is a Hold with a $157.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.