On Friday, the financial research group Roth/MKM commenced coverage of Insmed Incorporated, assigning the biotechnology firm a Buy rating accompanied by a price target of $212.00. This target assumes a sizeable increase above the closing price of $160.39, a level where the shares have already nearly doubled over the previous year, with a 106% gain as per InvestingPro metrics.
Roth/MKM's endorsement is largely based on the optimistic outlook for Insmed’s portfolio heading into 2026, particularly spotlighting the Brinsupri drug. The firm projects peak sales for Brinsupri to exceed consensus expectations by about 13% according to Visible Alpha data. This upbeat stance is despite the company not yet achieving profitability; the 12-month trailing period shows reported revenue at $447 million contrasted by an EBITDA deficit close to $978.79 million, highlighting operational losses.
Integral to Roth/MKM’s positive view is the Phase 3 ENCORE clinical trial, for which they assign a 75% likelihood of success. The final results of this trial, anticipated in March or April, could potentially unlock additional revenues for the frontline treatment Arikayce estimated at $1.3 billion, which would be a significant boost to the company’s top line.
On the risk front, Roth/MKM classifies the brensocatib CEDAR trial for hidradenitis suppurativa as high risk. Nonetheless, the firm notes that the previous failure in the CRS-sNP indication has adjusted market expectations downward ahead of a second-quarter 2026 data readout, effectively improving the risk-return alignment for investors.
Furthermore, the research note highlights that TPIP contributes an added $5 billion in pipeline opportunity, enhancing the overall valuation and reinforcing the Buy rating with an anticipated return of approximately 35%. From a financial health perspective, InvestingPro’s analysis indicates that Insmed's shares currently trade above the estimated fair value despite robust fundamentals including a solid current ratio of 4.63 and manageable debt levels, underscoring balance sheet resilience amid expansion.
Additional insights and detailed analytical research are available through InvestingPro’s Pro Research Report, aiding investors to navigate the complex biotech landscape with well-rounded information.
In related developments, Insmed announced fourth-quarter 2025 sales for Brinsupri totaled $144.6 million, surpassing analyst expectations by a substantial margin of 116%. This impressive uptake has led RBC Capital Markets to elevate its price target for the stock to $200 while maintaining an Outperform rating, reflecting confidence in continued growth.
Moreover, the company’s established product ARIKAYCE posted unaudited global revenue approximating $433.8 million for 2025, marking a 19% year-over-year increase. The company anticipates ARIKAYCE revenues in the range of $450 million to $470 million for 2026, reflecting its expanding market presence. RBC’s target adjustment incorporates enhanced penetration estimates for Brinsupri’s uptake in the last quarter of 2025.
These early revenue results illustrate Insmed’s strong market foothold with Brinsupri’s recent launch and better-than-expected performance from ARIKAYCE, highlighting a positive growth trajectory for the firm.