Insmed (INSM) AI Stock Analysis

• Market Cap: $34.94B
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• 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: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.70
• Shares Outstanding: 211,374,790
• 10 Day Avg. Volume: 1,712,504
• 30 Day Avg. Volume: 2,017,596
• 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: 0.51
• Enterprise Value/Revenue: 45.06
• Enterprise Value/Gross Profit: 59.76
• Enterprise Value/Ebitda: -19.19
• 1Y Price Target: $174.24
• Price Target Upside: 5.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 57 Neutral
• Price Target: $171.00 ▲(3.45% Upside)

Insmed's overall stock score is driven by strong technical indicators and positive earnings call sentiment, which are offset by significant financial challenges and valuation concerns. The company's robust guidance and clinical achievements provide optimism, but persistent net losses and cash flow issues remain critical risks.

Positive Factors

Regulatory Approval

The potential approval of BRINSUPRI in the EU as a first-in-class therapy for NCFB could significantly enhance Insmed's market position and revenue potential, providing a durable competitive advantage in treating non-cystic fibrosis bronchiectasis.

Strong Pipeline

A robust pipeline with over 30 preclinical programs indicates Insmed's commitment to innovation and long-term growth, potentially leading to new product launches and expanded market opportunities.

Financial Position

A solid cash reserve of $1.9 billion supports Insmed's R&D initiatives and strategic expansions, providing financial stability and flexibility to navigate market challenges and invest in growth opportunities.

Negative Factors

Net Losses

Persistent net losses and negative profit margins highlight ongoing operational inefficiencies, which could hinder Insmed's ability to achieve profitability and sustain long-term financial health.

Cash Flow Challenges

Negative cash flows indicate difficulties in generating sufficient cash from operations, potentially limiting Insmed's ability to fund new projects or respond to market opportunities without external financing.

Uncertainty in HS Study

Uncertainty in the HS study due to lack of reliable models could delay product development and impact Insmed's ability to expand its treatment portfolio in this indication, affecting future growth prospects.

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's financial performance is weak, with persistent net losses, negative cash flows, and operational inefficiencies. Despite positive revenue growth, the company struggles with profitability and cash generation, and the balance sheet shows ongoing financial risks.

Income Statement

Insmed's income statement reveals a challenging financial position with consistent net losses and negative profit margins. Despite a positive revenue growth rate of 4.48% in the TTM, the company struggles with high EBIT and EBITDA margins, indicating operational inefficiencies. The gross profit margin remains strong at over 75%, but the net profit margin is significantly negative at -259.82%, highlighting substantial net losses.

Balance Sheet

The balance sheet shows a mixed picture with a moderate debt-to-equity ratio of 0.59 in the TTM, suggesting manageable leverage compared to previous years. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is not explicitly calculated, but the overall equity position appears weak given the historical negative equity figures.

Cash Flow

Cash flow analysis indicates ongoing challenges with negative operating and free cash flows. Although there is a slight improvement in free cash flow growth at 10.05% in the TTM, the operating cash flow to net income ratio remains negative, reflecting cash flow difficulties. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is marginally better than net income, but still negative.

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	575.51M	1.15B	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: 165.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 165.29 is above the 20-day moving average (MA) of 161.35, above the 50-day MA of 148.70, and above the 200-day MA of 99.97, indicating a bullish trend. The MACD of 4.86 indicates Positive momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 61.08 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
INCY	―	$17.90B	15.36	30.39%	―	18.09%	3563.21%
GMAB	―	$17.93B	14.43	26.08%	―	23.25%	64.46%
RPRX	―	$21.24B	15.85	15.92%	2.39%	3.04%	53.03%
BMRN	―	$10.46B	15.60	9.07%	―	11.92%	60.21%
INSM	―	$34.94B	―	-160.54%	―	21.15%	-5.65%
BNTX	―	$25.25B	―	-1.81%	―	7.51%	30.53%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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’s Earnings Call Highlights Strong Portfolio and Growth

Insmed’s recent earnings call reflected a positive outlook, underscored by strong performance across its late-stage and early-stage portfolios. The company reported record ARIKAYCE revenue and successful capital raising efforts, despite some concerns regarding the launch of brensocatib and uncertainties in certain trials.

Insmed Reports Strong Growth and Strategic Advances

Insmed Incorporated is a global biopharmaceutical company focused on developing therapies for serious diseases, particularly in the pulmonary and inflammatory sectors, with a commitment to delivering first- and best-in-class treatments.