Back to rankings

Insmed Incorporated (INSM)

NEUTRAL
HealthcareBiotechnologyUnited States

Fundamental

43

Price

$125.52

Market Cap

$27.47B

Part 1 · What the company is worth

Overview

Insmed is a biopharmaceutical company that develops drugs for rare lung and inflammatory diseases with no or few approved treatments. Its first product, ARIKAYCE, is an inhaled antibiotic for a chronic lung infection caused by nontuberculous mycobacteria. In August 2025 it launched a second product, BRINSUPRI (brensocatib), the first approved treatment for bronchiectasis, a disease that damages the airways and had no dedicated drug until then. Both are chronic therapies patients take on an ongoing basis rather than a single course.

How it makes money

Insmed books revenue when specialty pharmacies and distributors take delivery of product, net of rebates and discounts negotiated with payors. Both drugs are priced as specialty medicines for rare or underserved diseases, so a relatively small number of patients generates meaningful revenue per prescription. BRINSUPRI is only months into its launch, so 2025 revenue reflects a partial year; the company has guided to roughly a billion dollars of BRINSUPRI sales in 2026 as prescribing ramps.

Revenue by segment

ARIKAYCE71.5%

Inhaled antibiotic for nontuberculous mycobacterial lung disease, Insmed's original and still-largest product.

BRINSUPRI28.5%

First approved treatment for bronchiectasis, launched in August 2025 and still ramping toward a much larger patient population.

Competitive moat

Patents and licences · Narrow

Both drugs are protected by patents and by the years of clinical development it takes to prove a therapy safe and effective in a rare disease, which discourages new entrants. The moat is narrow rather than wide: orphan-drug status and regulatory exclusivity are time-limited, and competitors are actively developing rival treatments for the same conditions.

What drives demand

Defensive

Both drugs treat chronic, serious lung conditions that patients and physicians do not defer because of the economy: once diagnosed, treatment is a medical necessity rather than a discretionary purchase, and it is largely paid for by insurance. Demand instead depends on diagnosis rates, physician awareness of a still-new disease category, and payor willingness to reimburse at the price set.

Key risks

  • Dependence on two products — Nearly all revenue comes from ARIKAYCE and the newly launched BRINSUPRI. Any manufacturing problem, safety signal or competitive setback affecting either drug would have an outsized effect on the company.
  • Reimbursement and pricing risk — Revenue depends on government and private payors continuing to cover both drugs at prices that support the business; unfavorable reimbursement decisions could reduce prescribing or force price concessions.
  • Reliance on third-party manufacturing — Insmed relies on outside manufacturers and suppliers to produce its drugs; a disruption at one of them could interrupt supply of a product for which there may be no immediate substitute.
  • Market acceptance of a new therapy — BRINSUPRI treats a disease that had no approved drug before it; how quickly physicians diagnose and prescribe for a newly defined market is uncertain and central to the 2026 growth the company has guided to.

The case for

Buyers argue that BRINSUPRI opens an entirely new, underdiagnosed disease category with no approved competitor, that ARIKAYCE still has room to grow as awareness spreads, and that a company moving from single-product to two-product commercial scale is closer to sustained profitability than its history suggests.

The case against

Sellers worry that BRINSUPRI's launch trajectory could fall short of the roughly billion-dollar 2026 guidance if diagnosis and prescribing ramp more slowly than hoped, that rival companies are racing to develop competing bronchiectasis treatments, and that a business still built on two drugs remains fragile to a single setback in either one.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$1.14B

Trailing 12 months (through 6/30/2026)

Net Income

$-875M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$-968M

Total Equity

$739M

Total Liabilities

$1.53B

Current Ratio

3.72

Interest Coverage

10.34

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Undervalued

Fair Value

$200.05

Current Price

$125.52

Margin of Safety

+37.3%

Fair Value Range

$190.04 - $210.05

Estimation Methods

Analyst Target:$200.05
DCF:-
PE-based:-
Graham Growth:-
EPV:-
Analyst Consensus:Strong Buy (29B / 1H / 0S)
Last Earnings Surprise:+92.50%

Valuation Metrics

P/E Ratio

-

ROE

-172.8%

P/B Ratio

35.74

P/FCF

-

Gross Margin

83.5%

ROIC

-39.9%

Profitability Radar

Value Creation (Economic Moat)

ROIC

-39.9%

WACC

9.1%

ROIC − WACC

-49.0 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (9)

  • Price CAGR 25.26%
  • Gross Margin 83.5%
  • Debt/Equity ratio
  • Current Ratio
  • Interest Coverage
  • Revenue Growth 5Y 29.8%
  • Analyst Consensus 97% Buy
  • Earnings Surprise avg 17.4%
  • Net Margin Trend -76.9% vs -259.8%

Failed (11)

  • EPS shows upward trend
  • ROIC -39.9%
  • P/B Ratio 35.74
  • Operating Margin -73.9%
  • Positive Free Cash Flow
  • Return on Tangible Assets
  • Low reliance on intangibles
  • DCF valuation (Unknown)
  • ROE -111.3%
  • Share Dilution 21.2%
  • Piotroski F-Score 4/9

Unavailable (7)

  • P/FCF NaN
  • Dividend Payout NaN%
  • CapEx intensity
  • Debt/EBITDA
  • Price below Graham Number
  • PEG Ratio (need PE > 0 and growth > 0)
  • Earnings Quality (OCF/Net Income)

Piotroski F-Score

4/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

21.2%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. William H. Lewis J.D., M.B.A.President, CEO & Chairman56
Ms. Sara M. Bonstein M.B.A.Chief Financial Officer44
Mr. Roger Adsett M.B.A.Chief Operating Officer56
Mr. Michael Alexander Smith J.D.Chief Legal Officer & Corporate Secretary47
Dr. Martina Flammer M.B.A., M.D.Chief Medical Officer61
Mr. Brian K. Kaspar Ph.D.Chief Scientific Officer51
Bryan DunnVice President of Investor Relations-
Ms. Christie CamelioChief Compliance Officer-
Ms. Claire MulhearnVice President of Corporate Communications-
Ms. S. Nicole Schaeffer M.B.A.Chief People Strategy Officer57

Audit Risk

5

Board Risk

4

Compensation Risk

6

Shareholder Rights Risk

9

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for INSM, sourced from Markets Gazette.

No recent news for INSM.