Insmed (INSM) AI Stock Analysis

• Market Cap: $34.06B
• Dividend Yield: N/A
• Average Volume (3M): 3.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 2,728,595
• 30 Day Avg. Volume: 3,344,811
• 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: 1.01
• Enterprise Value/Revenue: 77.12
• Enterprise Value/Gross Profit: 110.22
• Enterprise Value/Ebitda: -31.75
• 1Y Price Target: $220.07
• Price Target Upside: 37.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $159.00 ▼(-0.45% Downside)

The score is held back most by weak profitability and negative operating cash flow, alongside bearish technicals (below key moving averages and negative MACD). These are partially offset by strong commercial and pipeline momentum from the latest earnings call and corporate updates (BRINSUPRI launch traction, raised/beat revenue guidance, and EU approval), while valuation is mixed due to losses and no dividend support.

Positive Factors

Commercial momentum (BRINSUPRI & ARIKAYCE)

A meaningful revenue base from two commercial products reduces binary risk: BRINSUPRI scaled rapidly in 2025 while ARIKAYCE remains a dependable franchise. Durable commercial execution supports ongoing R&D funding, expands salesforce expertise, and underpins international launch investments over the next 2–3 years.

High gross margins & low leverage

Robust product-level economics and minimal debt create durable financial flexibility. High gross margins indicate strong pricing/patent protection and scalable COGS leverage, while low leverage lowers refinancing risk and preserves cash for clinical programs and market expansion over multiple quarters.

Regulatory foothold in EU

First-in-class EC approval establishes a durable competitive advantage and broader addressable market. EU authorization plus planned UK/Japan launches materially expands TAM, secures reimbursement negotiation leverage, and supports multi-year revenue visibility if uptake mirrors U.S. launch trends.

Negative Factors

Negative operating cash flow

Sustained negative operating cash flow signals an ongoing cash burn that can constrain strategic optionality. Even with strong product sales, the large OCF deficit requires continued reliance on cash reserves or financing, which can pressure R&D pacing and commercial investments over the medium term.

Deep operational losses

Severe negative profitability despite strong gross margins reflects high operating expenses tied to launches and R&D. Persistent negative EBIT and net margins weaken shareholder value creation, increase dilution risk via financing, and make sustained investment returns conditional on future successful commercialization or trial readouts.

Clinical failure & pipeline risk

A Phase 2b failure that led to program discontinuation highlights development risk and reduces pipeline optionality. With limited marketed products, further clinical setbacks could materially affect long-term growth prospects, making successful readouts and new acquisitions critical to replenish future approvals.

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

Revenue is growing (TTM +12.29%) and gross margin is strong (76.26%), with improved leverage (debt-to-equity 0.04). However, profitability and cash generation remain weak, with very negative net/EBIT margins and negative operating cash flow (-$883.40M), keeping the financial profile below average.

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: Negative
• Last Price: 159.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 159.72 is below the 20-day moving average (MA) of 168.19, below the 50-day MA of 184.91, and above the 200-day MA of 132.50, indicating a neutral trend. The MACD of -7.11 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INSM.

Insmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCY	81 Outperform	$20.14B	17.21	30.39%	―	18.09%	3563.21%
RPRX	80 Outperform	$23.36B	23.10	11.51%	2.23%	3.72%	-31.46%
GMAB	76 Outperform	$20.67B	14.10	28.20%	―	24.98%	127.06%
BMRN	72 Outperform	$10.91B	21.27	9.07%	―	12.31%	60.21%
INSM	53 Neutral	$34.06B	-25.84	-165.69%	―	30.34%	-11.26%
BNTX	53 Neutral	$28.37B	-44.85	-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 Announces Strong 2025 Results and Pipeline Progress

On January 9, 2026, Insmed reported strong preliminary unaudited 2025 financial results and pipeline progress ahead of its January 12, 2026 presentation at the J.P. Morgan Healthcare Conference, highlighted by a landmark first full year for BRINSUPRI and continued growth of ARIKAYCE. BRINSUPRI generated approximately $144.6 million in unaudited revenue in its first full quarter and $172.7 million for full-year 2025 in the U.S., with roughly 4,000 prescribers and about 9,000 new patients initiating therapy in the fourth quarter, while ARIKAYCE delivered about $433.8 million globally in 2025, exceeding guidance and driving total company revenues to approximately $606.4 million, a 67% year-on-year increase. The company outlined an aggressive 2026 roadmap, including an anticipated EU launch of BRINSUPRI following its November 2025 European Commission approval for non-cystic fibrosis bronchiectasis and planned launches in the U.K. and Japan, expected 2026 global ARIKAYCE revenues of $450 million to $470 million, and key clinical milestones: topline Phase 3 ENCORE data in MAC lung disease in March–April 2026, Phase 2b CEDAR data for brensocatib in hidradenitis suppurativa in the second quarter of 2026, initiation and expansion of multiple Phase 3 TPIP trials across PH-ILD, PAH, PPF, and IPF, and the acquisition of Phase 2–ready monoclonal antibody INS1148, collectively signaling a rapid expansion of its respiratory and inflammatory disease franchise and a potentially stronger competitive position for shareholders and patients alike.

The most recent analyst rating on (INSM) stock is a Hold with a $157.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

Insmed Halts CRSsNP Program After Phase 2b Failure

On December 17, 2025, Insmed announced the Phase 2b BiRCh study of brensocatib for chronic rhinosinusitis without nasal polyps (CRSsNP) did not meet primary or secondary efficacy endpoints, prompting the discontinuation of the CRSsNP program. The study, conducted at 104 global sites with 288 participants, showed no significant improvement in outcomes compared to the placebo, but brensocatib was well tolerated without new safety concerns. Additionally, Insmed acquired INS1148, a Phase 2-ready investigational monoclonal antibody targeting respiratory, immunological, and inflammatory diseases, marking a strategic move that could enhance its pipeline for high unmet medical needs.

The most recent analyst rating on (INSM) stock is a Buy with a $256.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.

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.

The most recent analyst rating on (INSM) stock is a Buy with a $214.00 price target. To see the full list of analyst forecasts on Insmed stock, see the INSM Stock Forecast page.