INSM Stock Risk & Deep Value Analysis
Insmed Inc
Healthcare • Biotechnology
DVR Score
out of 10
What You Need to Know About INSM Stock
We analyzed Insmed Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran INSM through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
INSM Risk Analysis & Red Flags
What Could Go Wrong
Despite positive clinical updates and commercial momentum, the company is operating with severe negative margins (-210.54% net margin) and projected deep losses for 2026. If BRINSUPRI's commercial ramp-up disappoints or pipeline assets face setbacks, the prolonged cash burn could necessitate dilutive capital raises, significantly impacting shareholder value and making the 10x growth target unachievable.
Risk Matrix
Overall
Aggressive
Financial
Medium
Market
Low
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Q4 2025 EPS miss by a significant margin ($0.47 miss).
- ⚠
Heavy insider selling (approx. $31.5M in Q4 2025 by CEO and other insiders, with CEO filing for further sale).
- ⚠
Severe negative net margin (-210.54%) and ROE (-168.36%).
- ⚠
Evident share dilution without corresponding buybacks.
Upcoming Risk Events
- 📅
Slower-than-expected BRINSUPRI commercial uptake or reimbursement challenges
- 📅
Negative clinical trial results for TPIP or ARIKAYCE sNDA rejection
- 📅
Continued significant EPS misses leading to prolonged cash burn concerns
When to Reconsider
- 🚪
Exit if BRINSUPRI quarterly sales guidance falls materially short of analyst expectations (e.g., Morgan Stanley's $209M for Q1).
- 🚪
Sell if cash burn accelerates significantly without proportionate revenue growth, leading to a deterioration in current/quick ratios.
- 🚪
Consider exiting if the company announces an unexpected, highly dilutive capital raise.
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What Does Insmed Inc (INSM) Do?
Market Cap
$35.54B
Sector
Healthcare
Industry
Biotechnology
Employees
1,271
Insmed Incorporated develops and commercializes therapies for patients with serious and rare diseases in the United States, Europe, Japan, and internationally. The company offers ARIKAYCE for the treatment of refractory nontuberculous mycobacterial lung infections, as well as is in phase 3 clinical trial for the treatment of mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients. It also devlops brensocatib, an oral reversible inhibitor of dipeptidyl peptidase 1(DPP1) that is in phase 3 clinical trial for the treatment of bronchiectasis; and in phase 2 clinical trial for the treatment of chronic rhinosinusitis without nasal polyps and hidradenitis suppurativa. In addition, the company is developing treprostinil palmitil inhalation powder, an inhaled formulation of a treprostinil prodrug treprostinil palmitil, which is in phase 3 clinical trial for the treatment of pulmonary hypertension associated with interstitial lung disease; and phase 2 clinical trial for the treatment of pulmonary arterial hypertension. Further, it develops gene therapy, a microdystrophin adeno-associated virus gene replacement therapy which is in phase 1 clinical trial for the treatment of Duchenne muscular dystrophy, as well as is in pre-clinical development for gene therapy, next generation DPP1 inhibitor, deimmunized therapeutic protein, and synthetic rescue. The company was founded in 1988 and is headquartered in Bridgewater, New Jersey.
Visit Insmed Inc WebsiteInvestment Thesis
Insmed is a high-growth biopharmaceutical company poised for significant expansion through the successful commercialization of BRINSUPRI (brensocatib) in NCFBE and the advancement of its late-stage pipeline, particularly TPIP for IPF. With first-in-class advantages and a strong balance sheet providing runway, the company is strategically positioned to achieve multi-blockbuster status, driven by strong execution on commercial ramp-up and pipeline catalysts, despite current unprofitability.
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INSM Price Targets & Strategy
12-Month Target
$212.00
Bull Case
$250.00
Bear Case
$120.00
Valuation Basis
Based on average analyst price targets ($213-$237) and 18x estimated 2027 sales (assuming $1.2B BRINSUPRI US sales for 2026 and continued growth)
Entry Strategy
Dollar-cost average between $145-$160. Consider accumulating on dips towards the 50-day SMA ($151.48) or previous support zones.
Exit Strategy
Take initial profits at $210-$220. Re-evaluate position above $250. Stop-loss at $130 (below 200-day SMA and recent support).
Portfolio Allocation
7-10% for aggressive growth-oriented investors.
Price Targets & Strategy
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Is INSM Financially Healthy?
Valuation
P/E Ratio
-25.72
Price/Book
48.09
Profitability
Net Margin
-210.54%
Return on Equity
-168.36%
Revenue Growth
152.60%
EPS
$-5.93
Balance Sheet
Current Ratio
3.83
Quick Ratio
3.54
Debt/Equity
0.76
Cash Flow
Free Cash Flow
-$967.20M
EBITDA
-$849.80M
Other
Beta (Volatility)
1.10
Does INSM Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Expanding
Moat Sources
3 Identified
The moat is durable due to patent protection on innovative therapies and high barriers to entry in rare disease drug development and regulatory approval. Once established, therapies for chronic conditions often exhibit high switching costs for patients and prescribers.
Moat Erosion Risks
- •Patent expiry or challenges for key products
- •Development of superior or equally effective therapies by competitors
- •Failure to differentiate TPIP effectively against existing and emerging IPF treatments
INSM Competitive Moat Analysis
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INSM Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral to Bullish (Biotech often garners retail interest around clinical catalysts; recent positive news likely supports bullish bias, but insider selling could induce caution).
Institutional Sentiment
Positive (Multiple recent analyst upgrades to Overweight ratings and increased price targets from Morgan Stanley, Barclays, and Bank of America. JPMorgan holds 10.7% beneficial ownership).
Insider Activity (Form 4)
Significant selling activity. CEO William Lewis sold 19,215 shares on January 12, 2026, and filed a Form 144 for a proposed sale on April 6, 2026. Aggregate insider selling in Q4 2025 was approximately 189,651 shares (~$31.5M). Roger Adsett also had multiple sales in Jan-Feb 2026.
Options Flow
Normal options activity (no specific unusual flow indicated, but general biotech sector often sees speculative interest).
Earnings Intelligence
Next Earnings
Estimated late April/early May 2026
Surprise Probability
Medium
Historical Earnings Pattern
Given the Q4 2025 EPS miss, the stock might be sensitive to further EPS misses. Historically, biotech stocks can exhibit significant volatility around pipeline and commercial updates.
Key Metrics to Watch
Competitive Position
Top Competitor
UTHR
Market Share Trend
Gaining (BRINSUPRI is first-in-class in NCFBE; ARIKAYCE revenue grew 19% YoY; TPIP aims to capture share in IPF with a differentiated product profile).
Valuation vs Peers
INSM is unprofitable (negative P/E), making traditional multiple comparisons difficult. Its growth potential for first-in-class therapies and differentiated pipeline assets could command a premium compared to more mature biotechs.
Competitive Advantages
- •First-in-class designation for BRINSUPRI in NCFBE (large unmet need)
- •Differentiated product profile for TPIP (once-daily treprostinil prodrug for IPF)
- •Established commercial infrastructure and expertise in rare pulmonary diseases with ARIKAYCE
Market Intelligence
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What Could Drive INSM Stock Higher?
Near-Term (0-6 months)
- •Continued BRINSUPRI U.S. launch momentum & Q1 2026 earnings results (expected late April/early May 2026)
- •Further updates on prescriber adoption and market penetration for BRINSUPRI
Medium-Term (6-18 months)
- •H2 2026: sNDA filing for ARIKAYCE based on ENCORE Phase 3b data (label expansion)
- •H2 2026: Initiation of late-stage study for TPIP in Idiopathic Pulmonary Fibrosis (IPF)
- •Potential regulatory milestones for BRINSUPRI in ex-U.S. markets
Long-Term (18+ months)
- •TPIP clinical trial progression and potential future market entry for IPF
- •Expansion of BRINSUPRI into additional indications beyond NCFBE
- •Establishing market leadership in NCFBE and competitive positioning in IPF
Catalysts & Growth Drivers
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What's the Bull Case for INSM?
- ✓
Acceleration in BRINSUPRI sales exceeding analyst estimates
- ✓
Positive updates on TPIP Phase 3 enrollment and progress
- ✓
Improvement in operating margins or a clear communicated path to profitability
Bull Case Analysis
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Competing with INSM
See how Insmed Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Insmed Inc INSM | $35.5B | 7.3 | -25.7 | $381.0M | -210.5% | 152.6% | |
Johnson & Johnson JNJ | — | 1.0 | — | — | — | — | Compare → |
Pfizer Inc PFE | $150.6B | 0.2 | 19.4 | $62.6B | 12.4% | -1.6% | Compare → |
UnitedHealth Group Inc UNH | $276.2B | 0.3 | 22.9 | $113.7B | 2.7% | 1181.0% | Compare → |
United Therapeutics Corp UTHR | $25.8B | 5.5 | 19.4 | $5.2B | 41.9% | 10.6% | Compare → |
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How Insmed Inc Makes Money
Insmed Inc. is a biopharmaceutical company that discovers, develops, and commercializes innovative medicines for patients with rare diseases. It primarily generates revenue by selling its approved drugs to healthcare providers and specialty pharmacies for distribution to patients. Its current main products are ARIKAYCE, used to treat refractory Mycobacterium avium complex (MAC) lung disease, and BRINSUPRI (brensocatib), recently launched for non-cystic fibrosis bronchiectasis (NCFBE). The company is investing heavily in research and development to bring new therapies, like TPIP for idiopathic pulmonary fibrosis (IPF), to market.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Insmed Inc (INSM)?
As of April 7, 2026, Insmed Inc has a DVR Score of 7.3 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Insmed Inc?
Insmed Inc's market capitalization is approximately $35.5B. The company operates in the Healthcare sector within the Biotechnology industry.
What ticker symbol does Insmed Inc use?
INSM is the ticker symbol for Insmed Inc. The company trades on the NMS.
What is the risk level for INSM stock?
Our analysis rates Insmed Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of INSM?
Insmed Inc currently has a price-to-earnings (P/E) ratio of -25.7. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Insmed Inc's revenue growing?
Insmed Inc has reported revenue growth of 152.6%. The company is showing strong top-line momentum.
Is INSM stock profitable?
Insmed Inc has a profit margin of -210.5%. The company is currently unprofitable.
How often is the INSM DVR analysis updated?
Our AI-powered analysis of Insmed Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on April 7, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for INSM (Insmed Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.