A Look at Insmed (INSM) Valuation Following EU Approval of BRINSUPRI for Bronchiectasis

Insmed (INSM) shares saw a reaction after the European Commission authorized BRINSUPRI as the first approved therapy for non-cystic fibrosis bronchiectasis in the European Union. This milestone opens a new commercial path.

See our latest analysis for Insmed.

Insmed’s latest regulatory success added fuel to a rally that has been building for months. The stock notched a 197% share price return year-to-date and a total shareholder return of 176% over the past year. The momentum is clear, driven by anticipation around BRINSUPRI and confidence in Insmed’s clinical pipeline.

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With such rapid gains and high expectations following BRINSUPRI’s approval, the question shifts to valuation. Is Insmed’s stock offering an attractive entry point, or are investors already factoring in the company’s growth potential?

Most Popular Narrative: 3% Undervalued

Insmed's most followed valuation narrative puts fair value within arm's reach of the current share price. This suggests only modest upside remains after the recent surge. With the market closely mirroring this assessment, anticipation now centers on which drivers will push the next move.

The anticipated U.S. launch of brensocatib in bronchiectasis in the third quarter of 2025 is a major catalyst. It is expected to significantly increase revenue once it hits the market and starts generating sales late in Q3. The upcoming Phase II data for TPIP in PAH by mid-2025 and brensocatib in CRS without nasal polyps by the end of 2025 are key clinical milestones that could enhance future revenue streams if positive.

Read the complete narrative.

Curious why analysts are betting on aggressive expansion? What bold underlying assumptions are hidden in this bullish consensus? The secret sauce behind this fair value involves ambitious revenue predictions and a profit outlook that could redefine the company's trajectory. Dive in to see what makes this calculation tick.

Result: Fair Value of $214.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential delays in regulatory reviews and challenges in broad market access could quickly reshape projections and change the current valuation narrative.

Find out about the key risks to this Insmed narrative.

Build Your Own Insmed Narrative

If you have a different perspective or want to dig into the numbers yourself, you can craft your own Insmed story in just a few minutes. Do it your way

A great starting point for your Insmed research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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