Insmed (INSM)
NASDAQ:INSM
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Insmed
(NASDAQ:INSM)
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Rating:47Neutral
Price Target:
$114.00
▼(-21.10% Downside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by weak financial quality—large ongoing operating losses and substantial cash burn—alongside bearish technical trends. Offsetting these are constructive earnings-call signals (reiterated $1B+ BRINSUPRI guidance, strong launch metrics, and a stated path to cash-flow positivity), but valuation support is limited given negative earnings and no dividend.
Positive Factors
Revenue growth & high gross margins
Sustained high revenue growth and very strong gross margins create a durable operating leverage opportunity: as sales scale, gross profit can absorb elevated R&D and SG&A, improving operating leverage and supporting the company's stated path to sustainable cash flow over the next 2–6 months if growth continues.
Negative Factors
Large operating losses and cash burn
Persistent, large negative operating cash flow and free cash flow require ongoing external funding or rapid commercialization lift to avoid depletion. Even with improved margins and launch momentum, this level of burn constrains capital allocation, increases financing risk, and can pressure execution over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & high gross margins
Sustained high revenue growth and very strong gross margins create a durable operating leverage opportunity: as sales scale, gross profit can absorb elevated R&D and SG&A, improving operating leverage and supporting the company's stated path to sustainable cash flow over the next 2–6 months if growth continues.
Read all positive factors
Insmed Key Performance Indicators (KPIs)
Insmed (INSM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.06B
Dividend YieldN/A
Average Volume (3M)3.29M
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth115.09%
EPS Growth3.42%
CountryUS
Employees1,271
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.75
Shares Outstanding216,752,460
10 Day Avg. Volume4,032,097
30 Day Avg. Volume3,289,757
Financial Highlights & Ratios
PEG Ratio-1.93
Price to Book (P/B)50.31
Price to Sales (P/S)61.31
P/FCF Ratio-38.43
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue28.86
Enterprise Value/Gross Profit35.39
Enterprise Value/Ebitda-20.76
Forecast
1Y Price Target
$199.65Price Target Upside38.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)-2.8
Revenue Forecast (FY)$1.70B
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...
How the Company Makes Money
Insmed primarily makes money by selling its commercial product, ARIKAYCE. Revenue is generated from product sales to wholesalers/specialty distributors and other customers in the geographies where ARIKAYCE is marketed; net product revenue is affec...
Insmed Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong commercial and clinical achievements: notably the BRINSUPRI launch with 44% sequential growth, high payer approvals (~90%), strong patient support enrollment (>80%), improved refill/continuation metrics, positive ARIKAYCE Phase IIIb ENCORE results suggesting a substantially larger addressable market, and ongoing TPIP Phase III progress. Financially the company has a solid cash position (~$1.2B) and reiterated guidance, with an expected path to cash flow positivity in 2027. Offsetting items include the completion of the early 'ready-and-waiting' demand tail (requiring organic uptake going forward), international launch uncertainty due to MFN, potential future payer policy tightening, higher near-term operating spend, and some ambiguity around discontinuation drivers. Overall, the positives—particularly the standout launch metrics, clinical wins, and balance sheet strength—appear to outweigh the risks and uncertainties discussed on the call.Positive Updates
BRINSUPRI Strong Sequential Launch Growth
BRINSUPRI delivered 44% sequential growth in Q1 off an already strong prior-quarter baseline; the company noted $350M in combined revenue in the first two full quarters (Q4/2025 + Q1/2026) and reiterated full-year 2026 BRINSUPRI guidance of at least $1.0B.
Negative Updates
Ready-and-Waiting Surge Largely Complete
Management estimates that ~3,500 of 9,000 new patient starts in Q4/2025 and ~1,500 of ~7,800 new patient starts in Q1/2026 were 'ready-and-waiting' patients who accelerated early demand; Q2 is expected to be the first period without that ready-and-waiting tail, meaning growth must come from organic demand expansion.
Read all updates
Q1-2026 Updates
Positive
Negative
BRINSUPRI Strong Sequential Launch Growth
BRINSUPRI delivered 44% sequential growth in Q1 off an already strong prior-quarter baseline; the company noted $350M in combined revenue in the first two full quarters (Q4/2025 + Q1/2026) and reiterated full-year 2026 BRINSUPRI guidance of at least $1.0B.
Read all positive updates
Company Guidance
Insmed reiterated full‑year guidance centered on BRINSUPRI achieving at least $1.0 billion in global net revenue and confirmed gross‑to‑net ranges (BRINSUPRI mid‑20s to low‑30s, ARIKAYCE low‑to‑mid‑20s) with Q1 actuals inside those ranges; the company ended Q1 with about $1.2 billion in cash, cash equivalents and marketable securities, reported Q1 cost of product revenues of $47.4 million (15.5% of revenues), said underlying Q1 cash burn was in line with recent quarters and should decline as revenues ramp, and reiterated a goal of sustainable cash‑flow positivity in 2027 without needing additional capital. Operational metrics cited to support the guidance included BRINSUPRI’s 44% sequential growth in Q1 and roughly $350 million of revenue in the first two full quarters, new patient starts of ~9,000 in Q4 and ~7,800 in Q1 (with ~3,500 and ~1,500 identified as “ready and waiting”), ~70,000 pre‑approval website registrants, >5,000 cumulative prescribers (>25% of U.S. pulmonologists), >80% enrollment in the inLighten support program, ~90% specialty‑pharmacy approval rate with most approvals in under a week, refill cadence near 30 days (vs. ~37‑day industry benchmark), and continuation rates tracking slightly above ~70% at six months.Insmed Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 819.56M | 606.42M | 363.71M | 305.21M | 245.36M | 188.46M |
| Gross Profit | 668.40M | 481.55M | 277.96M | 239.63M | 190.23M | 144.31M |
| EBITDA | -1.14B | -1.17B | -818.79M | -660.18M | -447.37M | -383.65M |
| Net Income | -1.18B | -1.28B | -913.77M | -749.57M | -481.53M | -434.65M |
Balance Sheet | ||||||
| Total Assets | 2.08B | 2.26B | 2.03B | 1.33B | 1.66B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.22B | 1.43B | 1.43B | 780.45M | 1.15B | 716.78M |
| Total Debt | 748.43M | 768.16M | 1.31B | 1.20B | 1.18B | 612.27M |
| Total Liabilities | 1.37B | 1.53B | 1.74B | 1.66B | 1.57B | 833.04M |
| Stockholders Equity | 704.85M | 738.98M | 285.38M | -331.92M | 87.95M | 410.47M |
Cash Flow | ||||||
| Free Cash Flow | -951.63M | -967.58M | -705.80M | -549.53M | -410.32M | -370.59M |
| Operating Cash Flow | -895.66M | -935.01M | -683.88M | -536.25M | -400.44M | -363.30M |
| Investing Cash Flow | 120.53M | -64.58M | -583.17M | -223.60M | -34.58M | -64.28M |
| Financing Cash Flow | 954.59M | 954.07M | 1.34B | 168.44M | 793.27M | 612.55M |
Insmed Technical Analysis
Negative
144.48
Price Trends
135.23
Negative
144.99
Negative
155.95
Negative
Market Momentum
-8.52
Negative
37.55
Neutral
25.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INSM, the sentiment is Negative. The current price of 144.48 is above the 20-day moving average (MA) of 115.85, above the 50-day MA of 135.23, and below the 200-day MA of 155.95, indicating a bearish trend. The MACD of -8.52 indicates Negative momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 25.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSM.
Insmed Risk Analysis
Insmed disclosed 53 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 0 New Risks
Insmed Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $19.45B | 13.57 | 29.31% | ― | 21.48% | 1853.63% | |
74 Outperform | $31.08B | 28.43 | 12.67% | 2.23% | 7.79% | -22.14% | |
70 Outperform | $10.12B | 37.78 | 4.41% | ― | 12.53% | -49.09% | |
63 Neutral | $16.04B | 6.22 | 20.51% | ― | 21.02% | -24.83% | |
55 Neutral | $23.52B | -16.32 | -6.67% | ― | 10.01% | -71.78% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $23.06B | -19.73 | -130.11% | ― | 115.09% | 3.42% |
* Healthcare Sector Average
INSM
Insmed
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Insmed Corporate Events
Executive/Board ChangesShareholder Meetings
Insmed Shareholders Approve Directors, Executive Pay and Auditor
Positive
May 15, 2026
Insmed shareholders convened on May 13, 2026, for the company’s annual meeting, where they elected Elizabeth McKee Anderson and Clarissa Desjardins, Ph.D., as Class II directors to serve until the 2029 annual meeting, reaffirming the existin...
Business Operations and StrategyProduct-Related Announcements
Insmed Halts Brensocatib Development After Phase 2b Failure
Negative
Apr 7, 2026
On April 7, 2026, Insmed reported topline results from its Phase 2b CEDAR trial of brensocatib in adults with moderate to severe hidradenitis suppurativa, showing the study failed to meet primary and secondary efficacy endpoints at both 10 mg and ...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Insmed Reports Positive Phase 3b ENCORE ARIKAYCE Results
Positive
Mar 23, 2026
On March 23, 2026, Insmed reported positive topline results from its Phase 3b ENCORE study of ARIKAYCE plus standard multidrug therapy in patients with newly occurring MAC lung infection who had not previously received antibiotics. The trial met i...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Insmed director McGirr to step down after 2026 meeting
Positive
Feb 19, 2026
On February 17, 2026, director David W.J. McGirr informed Insmed’s board that he will not stand for re-election at the 2026 annual meeting, though he will remain on the board and continue chairing the audit committee until then, and the comp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.