Insmed (INSM) AI Stock Analysis

• Market Cap: $11.85B
• Dividend Yield: N/A
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 20.77%
• EPS Growth: -13.60%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -1.42
• Shares Outstanding: 182,138,920
• 10 Day Avg. Volume: 2,119,831
• 30 Day Avg. Volume: 2,711,669
• 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: $97.54
• Price Target Upside: 49.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Insmed's overall score reflects strong revenue growth and positive developments in clinical trials and regulatory reviews, offset by substantial profitability and cash flow challenges. The technical indicators suggest bearish trends, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Commercial strategy

Insmed's commercial initiatives have shown a positive impact, especially given strong patient interest.

Financial performance

End of 1Q25 cash of $1.1B provides a strong financial runway well beyond the potential commercial launch for brenso.

Regulatory approval

The PDUFA date for brensocatib in NCFBE is expected to see approval due to no AdComm planned.

Negative Factors

Leadership changes

The resignation of the Chief Commercial Officer has no impact on the outlook for the business or the upcoming brensocatib launch.

Prescription challenges

Some initial access limitations are acknowledged, as most prescriptions will require medical exceptions and payers are cautious.

Revenue decline

1Q25 global Arikayce revenue was $92.8M, showing a decrease of 11% quarter over quarter.

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, which is approved for use in the United States and other international markets. The company targets patients with refractory MAC lung disease, a subset of nontuberculous mycobacterial (NTM) lung infections. Revenue is generated when healthcare providers prescribe ARIKAYCE to patients, and it is reimbursed through insurance programs or direct payments. Additionally, Insmed invests in research and development to expand its product pipeline, potentially leading to new revenue streams in the future. The company may also engage in strategic partnerships and collaborations to enhance its market presence and leverage distribution networks, although specific partnerships are subject to change.

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: Negative
• Last Price: 65.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 65.08 is below the 20-day moving average (MA) of 70.07, below the 50-day MA of 72.97, and below the 200-day MA of 73.56, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 35.80 is Neutral, neither overbought nor oversold. The STOCH value of 16.52 is Positive, 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
UTHR	79 Outperform	$13.60B	12.03	19.94%	―	19.85%	21.16%
BMRN	77 Outperform	$11.29B	21.84	9.64%	―	17.99%	152.10%
CORT	76 Outperform	$7.45B	60.96	21.52%	―	30.93%	11.78%
INCY	75 Outperform	$11.54B	184.44	0.47%	―	17.13%	-88.78%
ITCI	63 Neutral	$14.05B	―	-8.58%	―	46.62%	50.50%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.50%
INSM	49 Neutral	$11.85B	―	-320.20%	―	20.77%	-13.60%

Insmed Corporate Events

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.

Spark’s Take on INSM Stock

According to Spark, TipRanks’ AI Analyst, INSM is a Neutral.

Insmed’s stock score reflects strong growth prospects driven by product pipeline advancements and revenue increases. However, financial performance concerns, including profitability challenges and high leverage, weigh heavily. Technical indicators suggest bearish sentiment, while a positive earnings call outlook provides some counterbalance.

To see Spark’s full report on INSM stock, click here.

Insmed’s Brensocatib Receives FDA Priority Review

On February 24, 2025, Insmed announced that the FDA does not plan to hold an advisory committee meeting for their New Drug Application (NDA) of brensocatib, a treatment for non-cystic fibrosis bronchiectasis. The FDA has granted priority review to the NDA, with a target action date set for August 12, 2025. Brensocatib, based on data from the ASPEN study, could become the first approved treatment for bronchiectasis and represents a new class of medicines targeting neutrophil-mediated diseases.

Insmed Board Member Alfred Altomari to Step Down

On February 18, 2025, Alfred Altomari announced he would not seek re-election to Insmed’s board at the company’s 2025 Annual Meeting, though this decision was not due to any disagreements with the company. Insmed reported significant financial performance in 2024, with ARIKAYCE generating $363.7 million in revenue, marking a 19% annual growth. The company is also progressing with its drug Brensocatib, which received FDA Priority Review, and anticipates a U.S. launch in 2025 if approved. Insmed’s ongoing research and development efforts, including its robust pipeline and pre-clinical programs, position it for continued growth and expansion in the biopharmaceutical industry.