WEBULL

Insmed (INSM) Valuation Check After BiRCh Trial Setback and Respiratory Pipeline Shift

Simply Wall St · 1d ago

Insmed (INSM) has been on a bumpy ride after its Phase 2b BiRCh trial in chronic rhinosinusitis without nasal polyps failed to hit efficacy goals, forcing the company to halt that indication.

See our latest analysis for Insmed.

The selloff after the BiRCh miss has clearly cooled near-term enthusiasm, with a 7-day share price return of negative 10.75 percent and a 30-day share price return of negative 11.57 percent. However, the 90-day share price return of 20.9 percent and exceptional 3-year total shareholder return of 808.32 percent show investors are still focused on the broader respiratory pipeline.

If this kind of volatility has you scanning for other healthcare names, it could be a good moment to explore healthcare stocks and see what else fits your strategy.

With Insmed still trading at a steep intrinsic discount yet only about 22 percent below consensus targets, the real question now is whether recent weakness is a mispricing of its respiratory pipeline or whether markets are already baking in years of growth.

Most Popular Narrative: 18.2% Undervalued

With Insmed last closing at $175.76 against a narrative fair value of roughly $214.78, the current gap centers on aggressive respiratory growth assumptions.

The collective updates highlight a growing conviction that the company is transitioning from a single product story into a broader respiratory growth platform, with multiple value drivers beyond the initial launch.

Read the complete narrative. Read the complete narrative.

Want to see what powers this shift from niche player to platform story? The projections blend steep revenue ramps, rising margins, and a bold future earnings multiple. Curious which assumptions really move that fair value line?

Result: Fair Value of $214.78 (UNDERVALUED)

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

However, potential delays in FDA review for brensocatib and tougher payer negotiations on pricing could slow uptake and challenge the current growth narrative.

Find out about the key risks to this Insmed narrative.

Build Your Own Insmed Narrative

If this framework does not quite match your view, or you want to dive into the numbers yourself, you can build a custom view in minutes: Do it your way

A great starting point for your Insmed research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for your next standout opportunity?

Do not stop with a single stock when you can quickly scan fresh ideas that match your style, highlight strong fundamentals, and sharpen every decision you make.

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.