Insmed (INSM) AI Stock Analysis

• Market Cap: $25.79B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 21.15%
• EPS Growth: -5.65%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.70
• Shares Outstanding: 211,374,790
• 10 Day Avg. Volume: 3,582,348
• 30 Day Avg. Volume: 2,673,383
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 45.06
• Enterprise Value/Gross Profit: 59.76
• Enterprise Value/Ebitda: -19.19
• 1Y Price Target: $142.29
• Price Target Upside: 11.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 47 Neutral
• Price Target: $121.00 ▼(-5.28% Downside)

Insmed's overall stock score is primarily impacted by its weak financial performance and valuation challenges. However, positive earnings call sentiment and significant corporate events provide some optimism for future growth.

Positive Factors

Market Potential

Pricing came in at the high end of prior guidance, supporting a potential market opportunity of over $5B.

Product Approval

The approval of BRINSUPRI marks a significant milestone in Insmed’s evolution toward becoming a leading player in rare lung diseases.

Revenue Growth

Brinsupri has broad expansion possibilities into numerous diseases, with chronic rhinosinusitis without nasal polyps (CRSsNP) and hidradenitis suppurativa (HS) being the first two on the list.

Negative Factors

Adverse Effects

The label includes warnings on the potential for skin and gum/periodontal mechanism-related adverse effects.

Valuation Concerns

The current valuation largely captures the near-term opportunity, leading to a move to Equal-Weight.

Insmed Business Overview & Revenue Model

Company Description

Insmed Incorporated is a biopharmaceutical company focused on developing and commercializing innovative therapies for patients with serious and rare diseases. The company primarily operates in the biotechnology sector, with a strong emphasis on developing treatments for conditions such as cystic fibrosis and pulmonary diseases. Insmed's core products include its lead product candidate, which targets rare respiratory conditions, enhancing the quality of life for affected patients.

How the Company Makes Money

Insmed generates revenue primarily through the sales of its pharmaceutical products, particularly those that have received regulatory approval. The company focuses on developing specialty drugs that address unmet medical needs, allowing it to position itself in niche markets with high profit margins. Additionally, Insmed may engage in collaborations and partnerships with other pharmaceutical companies or research institutions, which can provide upfront payments, milestone payments based on development progress, and royalties on future sales. These collaborative efforts can significantly enhance its revenue streams, while also expanding its research and development capabilities.

Insmed Financial Statement Overview

Summary

Insmed is in a challenging financial position with consistent losses and operational inefficiencies reflected in negative margins. Revenue growth offers a glimmer of hope, but high leverage and continued cash outflows present significant risks. The company's ability to secure financing has been crucial in maintaining operations, but long-term sustainability depends on improving profitability and cash flow.

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	398.11M	363.71M	305.21M	245.36M	188.46M	164.41M
Gross Profit	300.17M	277.96M	239.63M	190.23M	144.31M	124.54M
EBITDA	-934.78M	-814.14M	-660.18M	-429.44M	-375.09M	-250.37M
Net Income	-1.03B	-913.77M	-749.57M	-481.53M	-434.65M	-294.09M
Balance Sheet
Total Assets	2.48B	2.03B	1.33B	1.66B	1.24B	796.15M
Cash, Cash Equivalents and Short-Term Investments	1.86B	1.43B	780.45M	1.15B	716.78M	532.76M
Total Debt	743.34M	1.31B	1.20B	1.18B	612.27M	404.84M
Total Liabilities	1.23B	1.74B	1.66B	1.57B	833.04M	520.27M
Stockholders Equity	1.25B	285.38M	-331.92M	87.95M	410.47M	275.88M
Cash Flow
Free Cash Flow	-868.57M	-705.80M	-549.53M	-410.32M	-370.59M	-226.17M
Operating Cash Flow	-844.55M	-683.88M	-536.25M	-400.44M	-363.30M	-219.35M
Investing Cash Flow	-563.47M	-583.17M	-223.60M	-34.58M	-64.28M	-6.82M
Financing Cash Flow	1.44B	1.34B	168.44M	793.27M	612.55M	271.00M

Insmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 127.75 is above the 20-day moving average (MA) of 109.28, above the 50-day MA of 101.49, and above the 200-day MA of 80.02, indicating a bullish trend. The MACD of 6.10 indicates Negative momentum. The RSI at 84.98 is Negative, neither overbought nor oversold. The STOCH value of 97.79 is Negative, 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	80 Outperform	$13.63B	12.09	19.30%	―	17.62%	19.89%
CORT	78 Outperform	$7.75B	64.79	21.42%	―	25.71%	4.48%
BMRN	76 Outperform	$10.92B	17.27	11.62%	―	17.38%	153.58%
INCY	75 Outperform	$16.82B	19.59	24.30%	―	18.87%	1088.27%
INSM	47 Neutral	$25.79B	―	-160.54%	―	21.15%	-5.65%
Sector *	47 Neutral	C$212.79M	-2.12	-24.82%	3.10%	19.48%	-0.09%

Insmed Corporate Events

Insmed Gains FDA Approval for BRINSUPRI

On August 12, 2025, Insmed announced that the FDA approved BRINSUPRI, the first and only treatment for non-cystic fibrosis bronchiectasis (NCFB) in patients 12 years and older. This approval marks a significant advancement for the approximately 500,000 U.S. patients diagnosed with NCFB, offering a new standard of care by targeting neutrophilic inflammation, a root cause of the disease. The approval is based on positive results from the Phase 3 ASPEN and Phase 2 WILLOW studies, which demonstrated reductions in exacerbations and improvements in lung function. The approval is expected to have a substantial impact on Insmed’s operations and industry positioning, as it addresses a previously unmet need in the treatment of NCFB.

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 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.