Insmed (INSM) AI Stock Analysis

• Market Cap: $13.56B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 19.17%
• EPS Growth: -4.45%
• Country: US
• Employees: 1,271
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -5.59
• Shares Outstanding: 180,999,340
• 10 Day Avg. Volume: 2,090,454
• 30 Day Avg. Volume: 1,912,051
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 37.27
• Price to Cash Flow (P/CF): -17.30
• P/FCF Ratio: 0.00
• 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: $97.08
• Price Target Upside: 32.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

Insmed's stock score is primarily driven by its strong technical performance, indicating potential short-term gains. However, substantial challenges in financial performance, particularly profitability and cash flow, weigh heavily on the overall score. Valuation concerns due to ongoing losses also impact the attractiveness of the stock. Positive momentum and strategic developments provide some counterbalance but do not fully mitigate the financial risks.

Positive Factors

Product Launch

Insmed is well-positioned to drive meaningful value creation through the potential approval and launch in bronchiectasis.

Sales Performance

Arikayce continues to grow, with 4Q24 as the highest single quarter sales to date.

Negative Factors

Earnings

4Q 2024 earnings came in below what was expected with a loss per share of ($1.32), as compared to the estimate of ($1.16) and Consensus at ($1.17).

Insmed Business Overview & Revenue Model

Company Description

Insmed Incorporated (INSM) is a global biopharmaceutical company dedicated to improving the lives of patients with serious and rare diseases. The company focuses on developing and commercializing innovative therapies for patients with unmet medical needs, particularly in the area of serious lung diseases. Insmed's core product, ARIKAYCE (amikacin liposome inhalation suspension), is specifically designed for the treatment of patients with refractory Mycobacterium avium complex (MAC) lung disease, which is a chronic and debilitating condition.

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

Despite strong revenue growth, Insmed faces severe profitability and cash flow challenges. The company reports substantial net losses, a negative profit margin, and high operating expenses. The balance sheet shows high leverage and high liabilities, and cash flow statements indicate a reliance on external financing, highlighting sustainability concerns.

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: 73.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 73.07 is below the 20-day moving average (MA) of 78.79, below the 50-day MA of 75.60, and above the 200-day MA of 71.35, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 13.32 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
BMRN	77 Outperform	$13.74B	32.75	8.05%	―	17.35%	151.40%
SRPT	69 Neutral	$9.67B	41.83	19.71%	―	52.97%	―
VRTX	64 Neutral	$128.40B	―	-3.15%	―	11.64%	-114.72%
FOLD	61 Neutral	$2.72B	―	-31.68%	―	32.29%	64.39%
RARE	54 Neutral	$3.47B	―	-214.50%	―	29.01%	23.93%
INSM	53 Neutral	$13.56B	―	-320.20%	―	19.17%	-4.45%
Sector *	49 Neutral	$7.05B	0.34	-55.09%	2.46%	25.27%	-3.43%

Insmed Corporate Events

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.

Insmed’s Brensocatib NDA Accepted by FDA

On February 6, 2025, Insmed announced that the FDA accepted its New Drug Application for brensocatib, a potential first-in-class treatment for non-cystic fibrosis bronchiectasis, with a target action date set for August 12, 2025. If approved, brensocatib would be the first treatment for bronchiectasis and the first dipeptidyl peptidase 1 inhibitor, reflecting a significant advancement in treating neutrophil-mediated diseases, potentially impacting the market and offering new hope to patients without existing treatment options.

Insmed Projects Revenue Growth and Advances Drug Pipeline

Insmed announced significant commercial and clinical progress, forecasting 2025 global revenues for ARIKAYCE between $405 million and $425 million, which represents continued growth. The company submitted a new drug application for brensocatib to the FDA and plans to launch it in the U.S. in the third quarter of 2025, pending approval. Insmed completed enrollment for various clinical trials, including the Phase 2 study for TPIP in PAH and the Phase 3 ENCORE trial for ARIKAYCE, with results expected in the coming years. Additionally, they plan to initiate a clinical trial for their gene therapy, INS1201, in patients with DMD in the first half of 2025.