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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on INSM

Insmed Incorporated's recent performance was negatively impacted by a wider-than-expected Q4 loss of $1.54 per share, compared to a loss of $1.07 per share estimated by Zacks Consensus. The company's medical care costs have been escalating, and its Q4 earnings call revealed rising expenses. Additionally, several institutional investors, including Allspring Global Investments Holdings LLC and BNP PARIBAS ASSET MANAGEMENT Holding S.A., have reduced their stakes in the company. Insider Michael Alexander Smith also sold 19,638 shares of stock.

1.c. Company Highlights

2. Insmed's Stellar Performance and Bright Outlook

Insmed's financial performance in 2025 was exceptional, with BRINSUPRI's launch exceeding expectations and ARIKAYCE continuing to show significant growth, particularly in Japan, which contributed more than a quarter of its global revenues. The company's revenue guidance for BRINSUPRI of at least $1 billion in 2026 is a testament to its confidence in the product's potential. The actual EPS for the year came out at -$1.54, relative to estimates of -$1.07. Revenue growth is estimated to be 63.7% next year.

Publication Date: Feb -22

📋 Highlights
  • BRINSUPRI Revenue Guidance:: Insmed projects $1 billion+ revenue for BRINSUPRI in 2026, with Q1 2025 net revenue at $144.6 million and gross-to-net (GTN) guidance of mid-20s to low 30s.
  • ARIKAYCE Global Growth:: Japan delivered 40% growth in 2025, contributing over 25% of ARIKAYCE’s global revenue, with GTN for 2026 expected at low to mid-20s due to IRA provisions.
  • Orphan Drug Designation:: FDA granted orphan status for treprostinil palmitil for pulmonary arterial hypertension, validating Phase II data and differentiating it from existing treprostinil options.
  • Market Access Success:: BRINSUPRI achieved high payer approval rates (exceeding ARIKAYCE benchmarks), with seamless reauthorizations and minimal friction in patient onboarding.
  • Untapped Patient Pool:: 250,000 U.S. patients with non-CF bronchiectasis and ≥2 exacerbations meet BRINSUPRI’s label criteria, with potential expansion to 32 million COPD/asthma patients needing CT scans for diagnosis.

Revenue and Margin Analysis

The cost of product revenues in the fourth quarter of 2025 was $44.2 million, or 16.8% of revenues, which is lower on a percentage basis compared to historical performance, reflecting the positive contributions of BRINSUPRI to the company's gross margin profile. The gross-to-net guidance range for BRINSUPRI in 2026 is expected to be in the mid-20s to low 30s, implying modest rebating. For ARIKAYCE, the gross-to-net is expected to range from the low to mid-20s due to the impact of the small manufacturer phase-in and other provisions under IRA.

Valuation Metrics

With a P/S Ratio of 58.0 and an EV/EBITDA of -29.07, Insmed's valuation appears to be stretched, reflecting high expectations for its growth prospects. The company's ROE and ROIC are -168.36% and -68.31%, respectively, indicating significant losses. However, the company's confidence in achieving cash flow positivity without needing additional capital is based on its existing development plan and the strength of its commercial engine.

BRINSUPRI's Potential and Market Access

The total addressable market for BRINSUPRI in the U.S. is estimated to be 500,000 currently diagnosed patients with non-CF bronchiectasis, with approximately half of them having had 2 or more exacerbations in the last 12 months. The company has seen a very high payer approval rate, even for payers requiring documentation, which is promising. As William Lewis stated, "We're not disclosing particular elements of it, like the approval rate itself. What I would tell you is that our benchmark internally based off of our experience with ARIKAYCE... is very high, and we are at or exceeding that level."

Pipeline and Future Prospects

Insmed has a strong and growing pipeline of potentially first or best-in-class investigational programs, including treprostinil palmitil, which has been granted orphan drug designation by the FDA for the treatment of pulmonary arterial hypertension. The company's confidence in its ENCORE readout is based on previous successful studies and a new PRO developed with the FDA using ARISE data as a benchmark.

3. NewsRoom

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Here Are Friday’s Top Wall Street Analyst Research Calls: Autodesk, Delek US Holdings, Insmed, Nike, Nutanix, ServiceNow, Shake Shack, Southern Copper, Veeva Systems, and More

Apr -10

Source: 247wallst.com

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Insmed Ends Brinsupri Development in Skin Disease Post Study Failure

Apr -08

Source: zacks.com

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Insmed discontinues development of skin condition drug after mid-stage study miss

Apr -07

Source: reuters.com

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Insmed Provides Clinical Update on Phase 2b CEDAR Study

Apr -07

Source: prnewswire.com

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Park Capital Management LLC WI Invests $1.04 Million in Insmed, Inc. $INSM

Apr -06

Source: defenseworld.net

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Insmed (NASDAQ:INSM) Insider Michael Alexander Smith Sells 19,638 Shares of Stock

Apr -03

Source: defenseworld.net

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Insmed, Inc. $INSM Shares Sold by Allspring Global Investments Holdings LLC

Apr -03

Source: defenseworld.net

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Options Bulls Could Be Right About This Pharma Stock

Apr -01

Source: schaeffersresearch.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.97%)

6. Segments

Therapies

Expected Growth: 8.97%

Insmed's therapies, such as Arikayce, are driving growth due to increasing adoption in treating refractory Mycobacterium avium complex (MAC) lung disease. Strong sales momentum, expanded commercial presence, and growing demand for orphan drugs are contributing to the 8.97% growth rate.

7. Detailed Products

Arikayce

Arikayce is a liposomal formulation of amikacin, an aminoglycoside antibiotic, for the treatment of Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen in adults.

8. Insmed Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Insmed Incorporated has a moderate threat of substitutes due to the availability of alternative treatments for respiratory diseases.

Bargaining Power Of Customers

Insmed Incorporated has a low bargaining power of customers due to the lack of negotiating power of individual patients.

Bargaining Power Of Suppliers

Insmed Incorporated has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials.

Threat Of New Entrants

Insmed Incorporated has a high threat of new entrants due to the attractiveness of the respiratory disease treatment market.

Intensity Of Rivalry

Insmed Incorporated operates in a highly competitive market with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 138.06%
Debt Cost 6.31%
Equity Weight -38.06%
Equity Cost 8.60%
WACC 5.44%
Leverage -362.73%

11. Quality Control: Insmed Incorporated passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BridgeBio Pharma

A-Score: 5.3/10

Value: 8.0

Growth: 5.1

Quality: 5.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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IDEAYA Biosciences

A-Score: 4.6/10

Value: 6.7

Growth: 2.9

Quality: 5.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

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Insmed

A-Score: 4.4/10

Value: 6.0

Growth: 3.3

Quality: 4.0

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

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ADMA Biologics

A-Score: 4.0/10

Value: 1.3

Growth: 8.4

Quality: 8.5

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

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Alpine Immune Sciences

A-Score: 4.0/10

Value: 6.0

Growth: 6.6

Quality: 4.2

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

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Bio-Techne

A-Score: 3.5/10

Value: 0.9

Growth: 4.2

Quality: 6.3

Yield: 1.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

146.74$

Current Price

146.74$

Potential

-0.00%

Expected Cash-Flows