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Insmed (INSM)
NASDAQ:INSM

Insmed (INSM) AI Stock Analysis

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Insmed

(NASDAQ:INSM)

Rating:57Neutral
Price Target:
$74.00
▲(0.52%Upside)
Insmed's stock score is driven by financial challenges and valuation concerns despite positive earnings call outcomes and supportive corporate events. Revenue growth and clinical advancements are offset by high debt and cash flow deficits.
Positive Factors
Expansion Potential
ARIKAYCE has the potential to expand into first-line treatment for Mycobacterium Avium Complex lung disease, with substantial sales growth opportunities based on its clinical benefits.
Market Share
Treprostinil Palmitil Inhalation Powder (TPIP) is positioned to take market share from mainstream drugs due to its safer and more convenient once-daily dosing.
Product Opportunity
The risk/reward heading into Insmed's Ph.2 PAH readout for TPIP has the potential to solidify another major product opportunity.
Negative Factors
Differentiation
The ability to measurably increase treprostinil exposure should improve efficacy, even if thresholds for meaningful differentiation aren’t met, there is still a strong commercial case given its improved administrative profile alone.
Market Valuation
Analysts see the molecule as somewhat de-risked and shares are trading absent much value for the asset, indicating a favorable near-term risk/reward.

Insmed (INSM) vs. SPDR S&P 500 ETF (SPY)

Insmed Business Overview & Revenue Model

Company DescriptionInsmed Incorporated is a global biopharmaceutical company dedicated to improving the lives of patients battling serious and rare diseases. The company focuses on the development, manufacturing, and commercialization of novel therapies for respiratory conditions. Insmed's flagship product, ARIKAYCE, is an inhaled antibiotic designed for the treatment of Mycobacterium avium complex (MAC) lung disease, a challenging condition to treat with existing therapies.
How the Company Makes MoneyInsmed 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 7.82%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant progress in clinical programs, and promising regulatory advancements. However, challenges remain in navigating regulatory processes and potential tariff impacts. Overall, the positive aspects, particularly the revenue growth and clinical milestones, outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Insmed started 2025 with strong execution in research, development, and regulatory teams, achieving significant progress in all its clinical programs.
ARIKAYCE Revenue Growth
ARIKAYCE delivered another quarter of double-digit year-over-year revenue growth, marking the sixth consecutive quarter of such achievement. Japan and Europe saw growth rates around 50%, with the U.S. recording a 14% increase.
Progress with Brensocatib
The Phase 3 ASPEN trial results for brensocatib in bronchiectasis were published in the New England Journal of Medicine, and regulatory processes in the U.S., Europe, and the U.K. are on track.
TPIP Program Advancements
The Phase 2 trial of TPIP in pulmonary arterial hypertension is nearing a topline readout, with expectations for significant reductions in pulmonary vascular resistance.
Financial Stability
Insmed reported a strong cash position with approximately $1.2 billion in cash, cash equivalents, and marketable securities, supporting its upcoming clinical and commercial activities.
Negative Updates
Potential Tariff Impacts
Concerns were raised about the potential impacts of tariffs on Insmed's operations, though the company estimates a relatively small financial impact in the single-digit millions annually.
Regulatory Uncertainty
There are uncertainties regarding the finalization of FDA inspections and the potential for unexpected regulatory requirements that could impact approval timelines.
Market Access Challenges
Discussions with market access participants highlight potential challenges in pricing and reimbursement strategies for new therapies like brensocatib.
Company Guidance
During the Insmed First Quarter 2025 Financial Results Call, CEO Will Lewis provided optimistic guidance, highlighting significant achievements and expectations for the year. ARIKAYCE reported double-digit year-over-year revenue growth in Q1 2025, and the company anticipates the FDA's decision on brensocatib for bronchiectasis by the PDUFA date of August 12. Insmed is advancing three mid to late-stage programs: brensocatib, TPIP, and ARIKAYCE, with recent publication of brensocatib's Phase 3 ASPEN trial results in the New England Journal of Medicine. The company reports over a million unique visits to their disease awareness website and over 53,000 engaged patients. Insmed's TPIP program for PAH targets a placebo-adjusted reduction in pulmonary vascular resistance of 20% as a successful outcome. With a strong cash position of approximately $1.2 billion, Insmed remains well-capitalized, aiming for a "frictionless launch" of brensocatib and prepared to address potential geopolitical uncertainties.

Insmed Financial Statement Overview

Summary
Insmed shows strong revenue growth but faces significant profitability and cash flow challenges. Negative equity in the past and high debt levels raise concerns about financial sustainability.
Income Statement
45
Neutral
Insmed's revenue has shown a consistent growth trend over the past few years, with an increase from $136.47 million in 2019 to $363.71 million in 2024. However, the company continues to report substantial net losses, with the net profit margin significantly negative, reflecting ongoing profitability challenges. Gross profit margins are relatively healthy, but high operating expenses contribute to negative EBIT and EBITDA margins.
Balance Sheet
30
Negative
The balance sheet reveals a strained financial position with a negative stockholders' equity in 2023, though it improved to a positive equity position in 2024. The debt-to-equity ratio has been volatile, reflecting high leverage. Despite a strong cash position, liabilities remain high, impacting the overall financial stability.
Cash Flow
35
Negative
Insmed's cash flow statements highlight challenges with cash management, as indicated by consistently negative operating and free cash flows. The company has been reliant on external financing to support operations and investment activities, which poses sustainability concerns.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
363.71M305.21M245.36M188.46M164.41M
Gross Profit
277.96M239.63M190.23M144.31M124.54M
EBIT
-878.25M-709.63M-478.12M-367.76M-265.23M
EBITDA
-818.79M-660.18M-429.44M-375.09M-250.37M
Net Income Common Stockholders
-913.77M-749.57M-481.53M-434.65M-294.09M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.43B780.45M1.15B716.78M532.76M
Total Assets
2.03B1.33B1.66B1.24B796.15M
Total Debt
45.49M1.20B1.18B612.27M404.84M
Net Debt
-509.54M721.62M103.83M-104.51M-127.91M
Total Liabilities
1.74B1.66B1.57B833.04M520.27M
Stockholders Equity
285.38M-331.92M87.95M410.47M275.88M
Cash FlowFree Cash Flow
-705.80M-549.53M-410.32M-370.59M-226.17M
Operating Cash Flow
-683.88M-536.25M-400.44M-363.30M-219.35M
Investing Cash Flow
-583.17M-223.60M-34.58M-64.28M-6.82M
Financing Cash Flow
1.34B168.44M793.27M612.55M271.00M

Insmed Technical Analysis

Technical Analysis Sentiment
Positive
Last Price73.62
Price Trends
50DMA
69.91
Positive
100DMA
73.81
Negative
200DMA
73.08
Positive
Market Momentum
MACD
0.86
Negative
RSI
61.01
Neutral
STOCH
84.29
Negative
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 73.62 is above the 20-day moving average (MA) of 68.69, above the 50-day MA of 69.91, and above the 200-day MA of 73.08, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 84.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSM.

Insmed Risk Analysis

Insmed disclosed 52 risk factors in its most recent earnings report. Insmed reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Risk Factor Summary Q4, 2024
2.
We may need to raise additional funds to continue our operations, and any failure to obtain capital when needed on acceptable terms, or at all, could force us to delay, reduce, or eliminate our development programs, commercialization efforts or other operations. Q4, 2024

Insmed Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$14.42B13.0019.94%19.85%21.16%
71
Outperform
$10.60B21.029.64%17.99%152.10%
71
Outperform
$13.31B212.780.47%17.13%-88.78%
68
Neutral
$7.32B60.4121.52%30.93%11.78%
57
Neutral
$13.25B-320.20%20.77%-13.60%
54
Neutral
$5.24B3.27-45.39%2.80%16.77%-0.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INSM
Insmed
73.62
13.72
22.90%
BMRN
BioMarin Pharmaceutical
56.65
-26.29
-31.70%
CORT
Corcept Therapeutics
69.60
37.67
117.98%
INCY
Incyte
68.77
9.37
15.77%
UTHR
United Therapeutics
325.82
50.57
18.37%

Insmed Corporate Events

Private Placements and Financing
Insmed Completes Redemption of Convertible Senior Notes
Neutral
Jun 6, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Insmed Shareholders Approve Key Proposals at Annual Meeting
Positive
May 16, 2025

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.

Executive/Board Changes
Insmed’s Chief Commercial Officer Resigns for Personal Reasons
Neutral
Apr 17, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.