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Insmed (INSM)
NASDAQ:INSM

Insmed (INSM) AI Stock Analysis

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Insmed

(NASDAQ:INSM)

Rating:56Neutral
Price Target:
$94.00
▼(-5.52%Downside)
The most significant factor affecting Insmed's stock score is its financial performance, characterized by consistent losses and high leverage. Technical analysis offers a mixed outlook, with some bullish momentum but overbought conditions. Valuation remains unattractive due to negative earnings. However, recent corporate events, such as successful clinical trial results and shareholder backing, provide positive momentum.
Positive Factors
Clinical Trial Success
Insmed reported Ph.2b PAH data with TPIP that exceeded all expectations, with a statistically significant and clinically meaningful 6MWD benefit.
Efficacy and Safety
The strong Ph2b efficacy and safety data should well position TPIP for advancement into Ph3.
Market Potential
TPIP sales are projected to outpace brensocatib, with an edge in the market due to the commercial success of similar products.
Negative Factors
Competition
Threats from other treprostinil developers are likely minimal, with Insmed highlighting its considerable due diligence on TPIP’s IP.
Regulatory Challenges
Mgt. to discuss Ph3 PAH trial design with regulators immediately.

Insmed (INSM) vs. SPDR S&P 500 ETF (SPY)

Insmed Business Overview & Revenue Model

Company DescriptionInsmed 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 MoneyInsmed generates revenue primarily through the sales of its flagship product, ARIKAYCE. The company markets ARIKAYCE in the United States and has received approval for its use in several international markets. Revenue is driven by direct sales to healthcare providers and through distribution agreements with pharmaceutical distributors. Insmed also invests in research and development to expand its product pipeline, which could lead to future revenue streams as new therapies are developed and commercialized. Strategic partnerships and collaborations with other biopharmaceutical companies contribute to the company's revenue by leveraging shared expertise and resources to advance its product offerings.

Insmed Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 45.71%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant progress in clinical programs, and promising regulatory advancements. However, challenges remain in navigating regulatory processes and potential tariff impacts. Overall, the positive aspects, particularly the revenue growth and clinical milestones, outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Insmed started 2025 with strong execution in research, development, and regulatory teams, achieving significant progress in all its clinical programs.
ARIKAYCE Revenue Growth
ARIKAYCE delivered another quarter of double-digit year-over-year revenue growth, marking the sixth consecutive quarter of such achievement. Japan and Europe saw growth rates around 50%, with the U.S. recording a 14% increase.
Progress with Brensocatib
The Phase 3 ASPEN trial results for brensocatib in bronchiectasis were published in the New England Journal of Medicine, and regulatory processes in the U.S., Europe, and the U.K. are on track.
TPIP Program Advancements
The Phase 2 trial of TPIP in pulmonary arterial hypertension is nearing a topline readout, with expectations for significant reductions in pulmonary vascular resistance.
Financial Stability
Insmed reported a strong cash position with approximately $1.2 billion in cash, cash equivalents, and marketable securities, supporting its upcoming clinical and commercial activities.
Negative Updates
Potential Tariff Impacts
Concerns were raised about the potential impacts of tariffs on Insmed's operations, though the company estimates a relatively small financial impact in the single-digit millions annually.
Regulatory Uncertainty
There are uncertainties regarding the finalization of FDA inspections and the potential for unexpected regulatory requirements that could impact approval timelines.
Market Access Challenges
Discussions with market access participants highlight potential challenges in pricing and reimbursement strategies for new therapies like brensocatib.
Company Guidance
During the Insmed First Quarter 2025 Financial Results Call, CEO Will Lewis provided optimistic guidance, highlighting significant achievements and expectations for the year. ARIKAYCE reported double-digit year-over-year revenue growth in Q1 2025, and the company anticipates the FDA's decision on brensocatib for bronchiectasis by the PDUFA date of August 12. Insmed is advancing three mid to late-stage programs: brensocatib, TPIP, and ARIKAYCE, with recent publication of brensocatib's Phase 3 ASPEN trial results in the New England Journal of Medicine. The company reports over a million unique visits to their disease awareness website and over 53,000 engaged patients. Insmed's TPIP program for PAH targets a placebo-adjusted reduction in pulmonary vascular resistance of 20% as a successful outcome. With a strong cash position of approximately $1.2 billion, Insmed remains well-capitalized, aiming for a "frictionless launch" of brensocatib and prepared to address potential geopolitical uncertainties.

Insmed Financial Statement Overview

Summary
Insmed is facing financial challenges with consistent net losses and negative margins. Revenue growth is encouraging, but high leverage and cash outflows present significant risks.
Income Statement
45
Neutral
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
40
Negative
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue381.03M363.71M305.21M245.36M188.46M164.41M
Gross Profit290.20M277.96M239.63M190.23M144.31M124.54M
EBITDA-930.50M-814.14M-660.18M-429.44M-375.09M-250.37M
Net Income-1.01B-913.77M-749.57M-481.53M-434.65M-294.09M
Balance Sheet
Total Assets1.80B2.03B1.33B1.66B1.24B796.15M
Cash, Cash Equivalents and Short-Term Investments1.20B1.43B780.45M1.15B716.78M532.76M
Total Debt1.14B45.49M1.20B1.18B612.27M404.84M
Total Liabilities1.70B1.74B1.66B1.57B833.04M520.27M
Stockholders Equity99.16M285.38M-331.92M87.95M410.47M275.88M
Cash Flow
Free Cash Flow-789.25M-705.80M-549.53M-410.32M-370.59M-226.17M
Operating Cash Flow-761.93M-683.88M-536.25M-400.44M-363.30M-219.35M
Investing Cash Flow-798.08M-583.17M-223.60M-34.58M-64.28M-6.82M
Financing Cash Flow1.37B1.34B168.44M793.27M612.55M271.00M

Insmed Technical Analysis

Technical Analysis Sentiment
Positive
Last Price99.49
Price Trends
50DMA
77.52
Positive
100DMA
76.97
Positive
200DMA
74.68
Positive
Market Momentum
MACD
8.47
Negative
RSI
66.23
Neutral
STOCH
51.15
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 99.49 is above the 20-day moving average (MA) of 90.56, above the 50-day MA of 77.52, and above the 200-day MA of 74.68, indicating a bullish trend. The MACD of 8.47 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 51.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INSM.

Insmed Risk Analysis

Insmed disclosed 52 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$12.82B11.3419.94%19.85%21.16%
74
Outperform
$13.23B211.540.47%17.13%-88.78%
72
Outperform
$7.76B63.5521.52%30.93%11.78%
71
Outperform
$10.58B20.479.64%17.99%152.10%
63
Neutral
$14.05B-8.58%46.62%50.50%
56
Neutral
$18.90B-320.20%20.77%-13.60%
51
Neutral
$7.41B0.36-61.88%2.33%16.99%1.69%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INSM
Insmed
99.49
33.15
49.97%
BMRN
BioMarin Pharmaceutical
55.17
-26.96
-32.83%
CORT
Corcept Therapeutics
73.22
40.55
124.12%
INCY
Incyte
68.37
7.50
12.32%
UTHR
United Therapeutics
284.27
-34.74
-10.89%
ITCI
Intra-Cellular Therapies
131.87
63.88
93.95%

Insmed Corporate Events

Private Placements and Financing
Insmed Announces $650 Million Public Stock Offering
Neutral
Jun 13, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Insmed Announces Positive Phase 2b Study Results
Positive
Jun 10, 2025

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.

Private Placements and Financing
Insmed Completes Redemption of Convertible Senior Notes
Neutral
Jun 6, 2025

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.

Shareholder MeetingsBusiness Operations and Strategy
Insmed Shareholders Approve Key Proposals at Annual Meeting
Positive
May 16, 2025

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.

Executive/Board Changes
Insmed’s Chief Commercial Officer Resigns for Personal Reasons
Neutral
Apr 17, 2025

On April 16, 2025, J. Drayton Wise resigned as Chief Commercial Officer of Insmed Incorporated for personal and medical reasons, effective immediately. His resignation was not due to any issues with the company’s financial or operational results. Mr. Wise will continue to provide consulting services to Insmed until December 31, 2025, with possible extensions. He will receive a monthly consulting fee and his equity awards will continue to vest during this period.

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.Date of analysis: Jun 12, 2025