A Look at Insmed’s (INSM) Valuation Following Positive EU Opinion on BRINSUPRI for NCFB

Insmed (INSM) shares drew fresh attention after the European Medicines Agency’s Committee for Medicinal Products for Human Use adopted a positive opinion on BRINSUPRI, targeting non-cystic fibrosis bronchiectasis in eligible patients.

See our latest analysis for Insmed.

There is no question that momentum has been building for Insmed lately, with the share price jumping 61.6% over the past three months and notching a stellar year-to-date share price return of nearly 137%. Investors appear to be rallying around the company’s string of regulatory wins and upcoming BRINSUPRI trial presentations, which has driven a 122% total shareholder return in just the last year. Both short-term and long-term performance now reflect growing confidence in Insmed’s innovation story.

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But with shares trading just 4% below the average analyst price target and Insmed already commanding strong growth expectations, the key question now is whether there is still upside left or if the market has already priced in future gains.

Most Popular Narrative: 4% Undervalued

Compared to the most widely followed narrative, Insmed’s fair value sits at $172.59, just above the last close of $165.76. This slight discount signals that analysts still see some upside, with future commercial milestones playing a pivotal role.

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

Want to know why analysts expect acceleration despite sky-high profit multiples? There is a secret recipe of rapid top-line growth and ambitious margin forecasts driving their confidence. Curious about which financial wild cards lift the target price? The blueprint for this bold valuation is waiting in the full narrative.

Result: Fair Value of $172.59 (UNDERVALUED)

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

However, ongoing regulatory delays or slower than expected market uptake could quickly challenge the bullish case for Insmed and limit its share price momentum.

Find out about the key risks to this Insmed narrative.

Build Your Own Insmed Narrative

If you think there is more to Insmed’s story, or want to dig into the numbers yourself, you can build your own analysis in 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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