Insmed Incorporated (INSM)
NEUTRALFundamental
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
Inhaled antibiotic for nontuberculous mycobacterial lung disease, Insmed's original and still-largest product.
First approved treatment for bronchiectasis, launched in August 2025 and still ramping toward a much larger patient population.
Competitive moat
Patents and licences · NarrowBoth 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
DefensiveBoth 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
Fair Value
$200.05
Current Price
$125.52
Margin of Safety
+37.3%
Fair Value Range
$190.04 - $210.05
Estimation Methods
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
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. William H. Lewis J.D., M.B.A. | President, CEO & Chairman | 56 |
| Ms. Sara M. Bonstein M.B.A. | Chief Financial Officer | 44 |
| Mr. Roger Adsett M.B.A. | Chief Operating Officer | 56 |
| Mr. Michael Alexander Smith J.D. | Chief Legal Officer & Corporate Secretary | 47 |
| Dr. Martina Flammer M.B.A., M.D. | Chief Medical Officer | 61 |
| Mr. Brian K. Kaspar Ph.D. | Chief Scientific Officer | 51 |
| Bryan Dunn | Vice President of Investor Relations | - |
| Ms. Christie Camelio | Chief Compliance Officer | - |
| Ms. Claire Mulhearn | Vice President of Corporate Communications | - |
| Ms. S. Nicole Schaeffer M.B.A. | Chief People Strategy Officer | 57 |
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.