Insmed (INSM) AI Stock Analysis

• Market Cap: $30.13B
• Dividend Yield: N/A
• Average Volume (3M): 2.93M
• 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: 53
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.70
• Shares Outstanding: 211,374,790
• 10 Day Avg. Volume: 2,404,366
• 30 Day Avg. Volume: 2,925,270
• 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: 0.60
• Enterprise Value/Revenue: 45.06
• Enterprise Value/Gross Profit: 59.76
• Enterprise Value/Ebitda: -19.19
• 1Y Price Target: $153.40
• Price Target Upside: 5.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 63 Neutral
• Price Target: $135.00 ▼(-6.96% Downside)

Insmed's overall stock score is driven by strong technical momentum and positive corporate events, including FDA approval and promising clinical trial results. However, significant financial challenges and valuation concerns weigh heavily on the score. The earnings call provided a positive outlook, but the company's financial health remains a critical risk factor.

Positive Factors

Clinical Trial Success

INSM's Phase 2 PAH TPIP trial exceeded expectations, demonstrating significant improvements in PVR reduction and 6MWD.

FDA Approval

Brensocatib was recently granted FDA approval for the treatment of non-cystic fibrosis bronchiectasis, paving the way for Insmed to embark on its largest launch yet.

Market Potential

Investors are expected to pay closer attention to TPIP due to its potential for peak sales significantly exceeding the $2 billion suggested for PAH and PH-ILD.

Negative Factors

Clinical Picture Clarity

Several questions limit insight into Insmed’s upside, with the full clinical picture remaining unclear.

Market Entry Timeline

There is a belief that Insmed will not have the freedom to launch TPIP before 2034, which could impact its market entry timeline.

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 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: 145.10
• 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 145.1 is above the 20-day moving average (MA) of 130.69, above the 50-day MA of 113.95, and above the 200-day MA of 84.82, indicating a bullish trend. The MACD of 8.93 indicates Negative momentum. The RSI at 79.86 is Negative, neither overbought nor oversold. The STOCH value of 83.37 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
GMAB	82 Outperform	$16.85B	13.64	26.08%	―	23.25%	64.46%
INCY	80 Outperform	$16.68B	19.70	24.30%	―	18.87%	1088.27%
BMRN	76 Outperform	$10.90B	16.81	11.62%	―	17.38%	153.58%
RPRX	72 Outperform	$21.52B	15.96	15.92%	2.41%	3.04%	53.03%
INSM	63 Neutral	$30.13B	―	-160.54%	―	21.15%	-5.65%
BNTX	55 Neutral	$24.88B	―	-1.81%	―	7.51%	30.53%
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%

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.

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.

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.