Insmed (INSM) AI Stock Analysis

• Market Cap: $40.44B
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• 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: 2,442,298
• 30 Day Avg. Volume: 2,124,836
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $193.41
• Price Target Upside: 2.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 53 Neutral
• Price Target: $197.00 ▲(3.90% Upside)

Insmed's stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical analysis shows strong momentum, valuation concerns due to a negative P/E ratio and lack of dividends weigh heavily. The positive sentiment from the earnings call is not factored into the overall score due to its exclusion from the weighted calculation.

Positive Factors

Regulatory Approval

The potential approval of BRINSUPRI in the EU as a first-in-class therapy for NCFB could significantly enhance Insmed's market position and revenue potential, providing a durable competitive advantage in treating non-cystic fibrosis bronchiectasis.

Strong Pipeline

A robust pipeline with over 30 preclinical programs indicates Insmed's commitment to innovation and long-term growth, potentially leading to new product launches and expanded market opportunities.

Financial Position

A solid cash reserve of $1.9 billion supports Insmed's R&D initiatives and strategic expansions, providing financial stability and flexibility to navigate market challenges and invest in growth opportunities.

Negative Factors

Net Losses

Persistent net losses and negative profit margins highlight ongoing operational inefficiencies, which could hinder Insmed's ability to achieve profitability and sustain long-term financial health.

Cash Flow Challenges

Negative cash flows indicate difficulties in generating sufficient cash from operations, potentially limiting Insmed's ability to fund new projects or respond to market opportunities without external financing.

Uncertainty in HS Study

Uncertainty in the HS study due to lack of reliable models could delay product development and impact Insmed's ability to expand its treatment portfolio in this indication, affecting future growth prospects.

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 pharmaceutical products, particularly those that have received regulatory approval. The company focuses on developing specialty drugs that address unmet medical needs, allowing it to position itself in niche markets with high profit margins. Additionally, Insmed may engage in collaborations and partnerships with other pharmaceutical companies or research institutions, which can provide upfront payments, milestone payments based on development progress, and royalties on future sales. These collaborative efforts can significantly enhance its revenue streams, while also expanding its research and development capabilities.

Insmed Financial Statement Overview

Summary

Insmed shows revenue growth and improved debt management, but faces significant challenges in profitability and cash flow. High operating expenses and negative net profit margins indicate operational inefficiencies.

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	36.56M	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: Positive
• Last Price: 189.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 189.6 is above the 20-day moving average (MA) of 166.02, above the 50-day MA of 151.93, and above the 200-day MA of 101.69, indicating a bullish trend. The MACD of 8.24 indicates Negative momentum. The RSI at 75.97 is Negative, neither overbought nor oversold. The STOCH value of 90.56 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
INCY	―	$18.35B	15.68	30.39%	―	18.09%	3563.21%
GMAB	―	$17.48B	14.17	26.08%	―	23.25%	64.46%
RPRX	―	$21.54B	15.96	15.92%	2.32%	3.04%	53.03%
BMRN	―	$10.29B	20.07	9.07%	―	12.31%	60.21%
BNTX	―	$24.98B	―	-1.81%	―	7.51%	30.53%
INSM	―	$40.44B	―	-165.69%	―	30.34%	-11.26%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Insmed Corporate Events

Insmed’s Q3 2025 Earnings Highlight Growth and Expansion

Looking ahead, Insmed remains focused on expanding its commercial footprint and advancing its clinical programs. The company anticipates several key data readouts and regulatory submissions in 2026, positioning itself for continued growth and innovation in the biopharmaceutical industry.

Insmed’s CEDAR Study: A Potential Game-Changer for Hidradenitis Suppurativa Treatment

Insmed Incorporated is conducting a Phase 2b clinical trial, known as the CEDAR Study, to evaluate the efficacy and safety of Brensocatib in adults with moderate to severe Hidradenitis Suppurativa (HS). The study aims to assess the effects of Brensocatib compared to a placebo, which could provide significant insights into treating this chronic skin condition.

Insmed’s Phase 1 Study on TPIP Formulations: A Potential Game-Changer in Drug Delivery

Insmed Incorporated is conducting a Phase 1 clinical study titled ‘A Study to Assess the Relative Bioavailability After a Single Inhalation Administration of Treprostinil Palmitil Inhalation Powder (TPIP) Formulation 2 (F2) to TPIP Formulation 3 (F3) in Healthy Participants.’ The primary objective is to evaluate the relative bioavailability of treprostinil between two formulations, TPIP F2 and TPIP F3, at three different capsule strengths in healthy volunteers. This study is significant as it aims to optimize the delivery and efficacy of treprostinil, a drug used in treating pulmonary arterial hypertension.

Insmed’s New Phase 3 Study: A Potential Game Changer for PH-ILD Treatment?

Insmed Incorporated has announced a new clinical study titled A Phase 3, Randomized, Double-blind, Placebo-controlled, Multicenter, Parallel Group Study to Evaluate the Efficacy and Safety of Treprostinil Palmitil Inhalation Powder in Participants With Pulmonary Hypertension Associated With Interstitial Lung Disease. The study aims to assess the impact of a 24-week treatment with Treprostinil Palmitil Inhalation Powder (TPIP) on exercise capacity in adults suffering from Pulmonary Hypertension associated with Interstitial Lung Disease (PH-ILD).

Insmed Gains FDA Approval for BRINSUPRI

On August 12, 2025, Insmed announced that the FDA approved BRINSUPRI, the first and only treatment for non-cystic fibrosis bronchiectasis (NCFB) in patients 12 years and older. This approval marks a significant advancement for the approximately 500,000 U.S. patients diagnosed with NCFB, offering a new standard of care by targeting neutrophilic inflammation, a root cause of the disease. The approval is based on positive results from the Phase 3 ASPEN and Phase 2 WILLOW studies, which demonstrated reductions in exacerbations and improvements in lung function. The approval is expected to have a substantial impact on Insmed’s operations and industry positioning, as it addresses a previously unmet need in the treatment of NCFB.

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.

Insmed’s Earnings Call Highlights Strong Portfolio and Growth

Insmed’s recent earnings call reflected a positive outlook, underscored by strong performance across its late-stage and early-stage portfolios. The company reported record ARIKAYCE revenue and successful capital raising efforts, despite some concerns regarding the launch of brensocatib and uncertainties in certain trials.

Insmed Reports Strong Growth and Strategic Advances

Insmed Incorporated is a global biopharmaceutical company focused on developing therapies for serious diseases, particularly in the pulmonary and inflammatory sectors, with a commitment to delivering first- and best-in-class treatments.