Insmed (INSM) AI Stock Analysis

• Market Cap: $13.31B
• Dividend Yield: N/A
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: 20.77%
• EPS Growth: -13.60%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.42
• Shares Outstanding: 182,138,920
• 10 Day Avg. Volume: 2,296,610
• 30 Day Avg. Volume: 2,566,696
• PEG Ratio: 21.20
• Price to Book (P/B): 48.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $98.36
• Price Target Upside: 33.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 57 Neutral
• Price Target: $74.00 ▲(0.42%Upside)

Insmed's stock score is driven by financial challenges and valuation concerns despite positive earnings call outcomes and supportive corporate events. Revenue growth and clinical advancements are offset by high debt and cash flow deficits.

Positive Factors

Expansion Potential

ARIKAYCE has the potential to expand into first-line treatment for Mycobacterium Avium Complex lung disease, with substantial sales growth opportunities based on its clinical benefits.

Market Share

Treprostinil Palmitil Inhalation Powder (TPIP) is positioned to take market share from mainstream drugs due to its safer and more convenient once-daily dosing.

Product Opportunity

The risk/reward heading into Insmed's Ph.2 PAH readout for TPIP has the potential to solidify another major product opportunity.

Negative Factors

Differentiation

The ability to measurably increase treprostinil exposure should improve efficacy, even if thresholds for meaningful differentiation aren’t met, there is still a strong commercial case given its improved administrative profile alone.

Market Valuation

Analysts see the molecule as somewhat de-risked and shares are trading absent much value for the asset, indicating a favorable near-term risk/reward.

Insmed Business Overview & Revenue Model

Company Description

Insmed Incorporated is a global biopharmaceutical company dedicated to improving the lives of patients battling serious and rare diseases. The company focuses on the development, manufacturing, and commercialization of novel therapies for respiratory conditions. Insmed's flagship product, ARIKAYCE, is an inhaled antibiotic designed for the treatment of Mycobacterium avium complex (MAC) lung disease, a challenging condition to treat with existing therapies.

How the Company Makes Money

Insmed 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 Financial Statement Overview

Summary

Insmed shows strong revenue growth but faces significant profitability and cash flow challenges. Negative equity in the past and high debt levels raise concerns about financial sustainability.

Income Statement

Insmed's revenue has shown a consistent growth trend over the past few years, with an increase from $136.47 million in 2019 to $363.71 million in 2024. However, the company continues to report substantial net losses, with the net profit margin significantly negative, reflecting ongoing profitability challenges. Gross profit margins are relatively healthy, but high operating expenses contribute to negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a strained financial position with a negative stockholders' equity in 2023, though it improved to a positive equity position in 2024. The debt-to-equity ratio has been volatile, reflecting high leverage. Despite a strong cash position, liabilities remain high, impacting the overall financial stability.

Cash Flow

Insmed's cash flow statements highlight challenges with cash management, as indicated by consistently negative operating and free cash flows. The company has been reliant on external financing to support operations and investment activities, which poses sustainability concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
363.71M	305.21M	245.36M	188.46M	164.41M
	Gross Profit
277.96M	239.63M	190.23M	144.31M	124.54M
	EBIT
-878.25M	-709.63M	-478.12M	-367.76M	-265.23M
	EBITDA
-818.79M	-660.18M	-429.44M	-375.09M	-250.37M
	Net Income Common Stockholders
-913.77M	-749.57M	-481.53M	-434.65M	-294.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.43B	780.45M	1.15B	716.78M	532.76M
	Total Assets
2.03B	1.33B	1.66B	1.24B	796.15M
	Total Debt
45.49M	1.20B	1.18B	612.27M	404.84M
	Net Debt
-509.54M	721.62M	103.83M	-104.51M	-127.91M
	Total Liabilities
1.74B	1.66B	1.57B	833.04M	520.27M
	Stockholders Equity
285.38M	-331.92M	87.95M	410.47M	275.88M
Cash Flow		Free Cash Flow
-705.80M	-549.53M	-410.32M	-370.59M	-226.17M
	Operating Cash Flow
-683.88M	-536.25M	-400.44M	-363.30M	-219.35M
	Investing Cash Flow
-583.17M	-223.60M	-34.58M	-64.28M	-6.82M
	Financing Cash Flow
1.34B	168.44M	793.27M	612.55M	271.00M

Insmed Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 73.69 is above the 20-day moving average (MA) of 68.06, above the 50-day MA of 70.08, and above the 200-day MA of 73.12, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.75 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
UTHR	79 Outperform	$14.68B	12.94	19.94%	―	19.85%	21.16%
BMRN	71 Outperform	$10.89B	20.82	9.64%	―	17.99%	152.10%
INCY	71 Outperform	$12.64B	207.64	0.47%	―	17.13%	-88.78%
CORT	68 Neutral	$7.37B	60.74	21.52%	―	30.93%	11.78%
INSM	57 Neutral	$13.31B	―	-320.20%	―	20.77%	-13.60%
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%

Insmed Corporate Events

Insmed Shareholders Approve Key Proposals at Annual Meeting

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.

Insmed’s Chief Commercial Officer Resigns for Personal Reasons

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.