Insmed (INSM) AI Stock Analysis

• Market Cap: $43.51B
• Dividend Yield: N/A
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 30.34%
• EPS Growth: -11.26%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.75
• Shares Outstanding: 213,273,470
• 10 Day Avg. Volume: 1,861,400
• 30 Day Avg. Volume: 2,666,641
• PEG Ratio: -2.88
• Price to Book (P/B): 39.69
• Price to Sales (P/S): 31.14
• P/FCF Ratio: -16.05
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 66.13
• Enterprise Value/Gross Profit: 94.51
• Enterprise Value/Ebitda: -27.22
• 1Y Price Target: $221.14
• Price Target Upside: 13.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $200.00 ▲(3.00% Upside)

The overall stock score reflects Insmed's strong technical indicators and positive corporate events, such as the approval of BRINSUPRI in the EU. However, significant challenges in financial performance, particularly in profitability and cash flow, weigh heavily on the score. The balanced outlook from the earnings call and concerns about valuation further moderate the overall assessment.

Positive Factors

Regulatory Approval

The approval of BRINSUPRI in the EU marks a significant milestone, potentially reshaping the treatment landscape for non-cystic fibrosis bronchiectasis, and enhancing Insmed's market position in Europe.

Revenue Growth

Strong revenue growth from ARIKAYCE indicates robust product performance and market acceptance, contributing to the company's financial health and stability.

Pipeline Development

The active pipeline with upcoming clinical trials and potential Phase III programs suggests a strong future growth trajectory and innovation in drug development.

Negative Factors

Profitability Challenges

Ongoing profitability challenges with significant operational losses indicate the need for strategic improvements to achieve sustainable financial performance.

Cash Flow Issues

Negative cash flow suggests inefficiencies in converting income into cash, which could impact the company's ability to fund operations and growth initiatives.

Market Access Uncertainty

Uncertainties in market access and reimbursement criteria for BRINSUPRI could affect its long-term sales potential and revenue stability.

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 flagship product, ARIKAYCE. The company has established a pricing strategy that reflects the specialized nature of its therapies and the significant unmet medical needs they address. Additionally, Insmed engages in partnerships and collaborations with other pharmaceutical companies and research institutions to enhance its drug development pipeline, which can lead to milestone payments and royalties. The company also benefits from grants and funding aimed at supporting research and development in rare diseases, further contributing to its financial stability.

Insmed Financial Statement Overview

Summary

Insmed shows revenue growth and improved debt management, but faces significant challenges in profitability and cash flow. High operating expenses and negative net profit margins indicate operational inefficiencies.

Income Statement

Insmed shows a consistent revenue growth trend with a 12.29% increase in TTM, but profitability remains a challenge. The company has a negative net profit margin of -264.83% and an EBIT margin of -167.30%, indicating significant operational losses. Despite a strong gross profit margin of 76.26%, high operating expenses are impacting overall profitability.

Balance Sheet

The balance sheet reflects a significant improvement in debt management, with a reduced debt-to-equity ratio of 0.04 in TTM compared to previous years. However, the return on equity remains negative at -183.55%, highlighting ongoing challenges in generating shareholder value. The equity ratio of 40.05% indicates a moderate level of financial stability.

Cash Flow

Cash flow analysis reveals a slight improvement in free cash flow growth at 4.33% in TTM, but the company still faces negative operating cash flow of -$883.40 million. The operating cash flow to net income ratio is -2.12, suggesting inefficiencies in converting income into cash. The free cash flow to net income ratio of 1.03 indicates that free cash flow is slightly better aligned with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	447.02M	363.71M	305.21M	245.36M	188.46M	164.41M
Gross Profit	312.79M	277.96M	239.63M	190.23M	144.31M	124.54M
EBITDA	-1.09B	-818.79M	-660.18M	-447.37M	-383.65M	-250.37M
Net Income	-1.18B	-913.77M	-749.57M	-481.53M	-434.65M	-294.09M
Balance Sheet
Total Assets	2.36B	2.03B	1.33B	1.66B	1.24B	796.15M
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.43B	780.45M	1.15B	716.78M	532.76M
Total Debt	745.08M	1.31B	1.20B	1.18B	612.27M	404.84M
Total Liabilities	1.42B	1.74B	1.66B	1.57B	833.04M	520.27M
Stockholders Equity	945.57M	285.38M	-331.92M	87.95M	410.47M	275.88M
Cash Flow
Free Cash Flow	-906.14M	-705.80M	-549.53M	-410.32M	-370.59M	-226.17M
Operating Cash Flow	-883.40M	-683.88M	-536.25M	-400.44M	-363.30M	-219.35M
Investing Cash Flow	-322.23M	-583.17M	-223.60M	-34.58M	-64.28M	-6.82M
Financing Cash Flow	1.08B	1.34B	168.44M	793.27M	612.55M	271.00M

Insmed Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 194.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 194.17 is below the 20-day moving average (MA) of 201.30, above the 50-day MA of 181.42, and above the 200-day MA of 117.18, indicating a neutral trend. The MACD of 5.70 indicates Positive momentum. The RSI at 48.86 is Neutral, neither overbought nor oversold. The STOCH value of 14.75 is Positive, 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	81 Outperform	$20.13B	16.22	30.39%	―	18.09%	3563.21%
RPRX	79 Outperform	$22.32B	22.11	11.51%	2.31%	3.72%	-31.46%
BMRN	77 Outperform	$10.26B	19.97	9.07%	―	12.31%	60.21%
GMAB	76 Outperform	$19.52B	13.45	28.20%	―	24.98%	127.06%
INSM	54 Neutral	$43.51B	―	-165.69%	―	30.34%	-11.26%
BNTX	53 Neutral	$23.39B	―	-2.94%	―	7.04%	-25.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Insmed Corporate Events

Insmed’s BRINSUPRI Approved by European Commission

On November 18, 2025, Insmed announced that the European Commission approved BRINSUPRI (brensocatib 25 mg tablets) for treating non-cystic fibrosis bronchiectasis (NCFB) in patients aged 12 and older with two or more exacerbations in the past year. This approval marks a significant milestone as BRINSUPRI becomes the first and only approved treatment for NCFB in the EU, potentially reshaping the treatment landscape for this debilitating disease. The decision was based on data from the Phase 3 ASPEN and Phase 2 WILLOW studies, which demonstrated a reduction in exacerbations and a slower decline in lung function. Insmed plans to engage with EU authorities to secure access for eligible patients starting in early 2026.