Insmed's Q1 Loss Wider Than Expected, Sales Match Estimates

Insmed INSM reported a first-quarter 2025 loss of $1.42 per share, which was wider than the Zacks Consensus Estimate of a loss of $1.36. In the year-ago quarter, the company posted a loss of $1.06 per share.

The company generated total quarterly revenues of $92.8 million, which rose 23% year over year. Quarterly sales were in line with the Zacks Consensus Estimate. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar)

INSM Stock’s Performance

Shares of the company were down 4% yesterday, likely due to the earnings miss.

Year to date, the stock has lost 9% compared with the industry’s 5% decline.

More on Insmed’s Quarterly Results

In the reported quarter, total revenues were generated entirely by the company’s only marketed drug, Arikayce, which is approved for treating refractory mycobacterium avium complex (“MAC”) lung disease in adults with limited or no alternative treatment options.

The rise in Arikayce sales was driven by continued growth in demand across all marketed regions. Sales of the drug increased 14% to $64.3 million in the United States and 48% to $22.1 million in Japan. Sales in Europe and the rest of the world rallied 52% to $6.5 million.

In the reported quarter, research and development expenses rose 26% year over year to $152.6 million. Selling, general and administrative expenses amounted to $147.5 million, up 58% from the year-ago figure. The uptick in both expenses can be attributed to a rise in employee headcount, resulting in increased compensation and benefit-related expenses as well as stock-based compensation costs.

As of March 31, 2025, Insmed had cash, cash equivalents and marketable securities of around $1.2 billion compared with $1.4 billion as of Dec. 31, 2024.

INSM Maintains 2025 Guidance

Insmed reiterated its sales guidance for the full year. It expects product sales for Arikayce to be between $405 million and $425 million, indicating 14% year-over-year growth at the midpoint of the range.

Updates on INSM’s Pipeline

During fourth-quarter 2024, the company completed enrolling patients in the confirmatory phase III ENCORE study, which is evaluating Arikayce as a potential treatment for newly infected patients with MAC lung disease. While top-line data from this study is expected in the first half of 2026, Insmed intends to submit a regulatory filing with the FDA for the drug before 2026-end.

In February, Insmed announced that the FDA accepted its regulatory filing seeking approval for brensocatib in bronchiectasis indication. The agency has granted a priority review to this filing and a final decsion is expected by Aug.12, 2025. If approved, Insmed plans to commercialize the drug immediately in the United States. While similar regulatory filings are currently under review in the European Union and the United Kingdom, a regulatory submission is planned for Japan later this year.

Apart from bronchiectasis, Insmed is also evaluating brensocatib in the phase IIb BiRCh study in patients with chronic rhinosinusitis without nasal polyps (CRSsNP). A data readout is expected before this year’s end. In December, the company started the phase II CEDAR study on the drug in patients with hidradenitis suppurativa. An interim futility analysis from the CEDAR study is expected in the first half of 2026.

Insmed has completed a mid-stage study evaluating treprostinil palmitil inhalation powder (“TPIP”) in patients with pulmonary arterial hypertension and plans to report topline data next month. It remains on track to start a late-stage study evaluating TPIP in patients with pulmonary hypertension associated with interstitial lung disease later this year.

During the first quarter, Insmed started the early-stage ASCEND study on its lead gene therapy, INS2101, for Duchenne muscular dystrophy. It expects to dose the first patient in second-quarter 2025.

INSM’s Zacks Rank

Insmed currently has a Zacks Rank #3 (Hold).

Insmed, Inc. Price

Insmed, Inc. price | Insmed, Inc. Quote

Our Key Picks Among Biotech Stocks

Some better-ranked stocks from the industry are Adaptive Biotechnologies ADPT, Beam Therapeutics BEAM and Elevation Oncology ELEV, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Adaptive Biotechnologies’ 2025 loss per share have improved from 92 cents to 87 cents. During the same timeframe, estimates for 2026 loss per share have narrowed from 69 cents to 65 cents.

Adaptive Biotechnologies’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 21.38%. Shares of ADPT have surged 55% year to date.

Estimates for Beam Therapeutics’ 2025 loss per share have narrowed from $4.45 to $4.30 over the past 60 days, and the same for 2026 loss has improved from $4.94 to $4.65.

Beam Therapeutics’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average negative surprise of 3.14%. Year to date, its shares have lost 31%.

In the past 60 days, estimates for Elevation Oncology’s 2025 loss per share have narrowed from 83 cents to 61 cents. Loss per share estimates for 2026 have narrowed from 88 cents to 44 cents during the same time. Year to date, shares of ELEV have declined 36%.

Elevation Oncology’s earnings beat estimates in two of the trailing four quarters and missed the mark on the remaining occasions, the average surprise being 5.10%.

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This article originally published on Zacks Investment Research (zacks.com).

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