A Look at Insmed's (INSM) Valuation Following Landmark EU Approval for BRINSUPRI

Insmed (INSM) has secured a major regulatory win, as the European Commission granted approval for BRINSUPRI as the first and only approved treatment for non-cystic fibrosis bronchiectasis in the European Union. This decision followed an accelerated assessment based on strong trial data and public health interest.

See our latest analysis for Insmed.

Insmed’s share price has gone from strength to strength, notching an impressive 23.9% return over the past month and surging more than 184% year-to-date. Momentum is clearly building, and investors have been quick to reward the company’s breakthrough with BRINSUPRI along with a string of positive clinical readouts and regulatory milestones. The one-year total return of 171.7% confirms that optimism about Insmed’s future prospects has only grown stronger.

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With the stock up more than 180% this year, some investors may wonder whether Insmed’s rally still has legs or if expectations for future growth have already been fully baked in. Is there a true buying opportunity here, or is all the good news already priced in?

Most Popular Narrative: 2.8% Undervalued

Insmed’s current fair value estimate stands just slightly above its last close, signaling only a modest discount remaining. With impressive stock gains and strong clinical momentum, the latest narrative sets out why market expectations could still move higher.

The anticipated U.S. launch of brensocatib in bronchiectasis in the third quarter of 2025 is a major catalyst, 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.

Wondering what powers this ambitious price estimate? The narrative is betting on extraordinary revenue growth, never-before-seen profit margin gains, and a bold sector-leading multiple. Are these projections realistic or wishful thinking? Unpack the specifics and judge the case for yourself.

Result: Fair Value of $204.5 (UNDERVALUED)

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

However, slow uptake for new therapies or regulatory delays could quickly challenge Insmed’s current growth expectations and disrupt the bullish outlook.

Find out about the key risks to this Insmed narrative.

Build Your Own Insmed Narrative

If you see the story differently or want to dig into the numbers firsthand, you can craft your own Insmed outlook in just a few minutes with our interactive tools. 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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