Lung Disease-Focused Insmed 'Is An Attractive Midcap Biotech,' Analyst Says

RBC Capital Markets has initiated coverage on Insmed Inc INSM, citing brensocatib’s launch momentum.

In February, the FDA accepted the company’s New Drug Application (NDA) for brensocatib for patients with bronchiectasis and granted the application Priority Review with a Prescription Drug User Fee Act target action date of August 12, 2025.

If approved, Insmed expects brensocatib to launch in the U.S. in the third quarter.

The FDA also informed the company that it does not currently plan to hold an advisory committee meeting to discuss the New Drug Application.

RBC Capital analyst Leonid Timashev says brensocatib has potential for a $6.5 billion opportunity in bronchiectasis and a rapid launch, “making Insmed an attractive midcap biotech.”

RBC has initiated with an Outperform rating with a price forecast of $100.

The RBC analyst expects a high likelihood of approval for the bronchiectasis treatment with a favorable label, paving the way for a strong launch. Feedback from key opinion leaders (KOLs) and the company’s prelaunch efforts and education suggests a strong willingness to prescribe. Around 50% or more of eligible patients could receive brensocatib after its mid-2025 launch.

While insurance coverage and reaching moderate patients may pose early challenges, frequent patient visits, positive initial experiences, and being the only approved treatment should drive adoption and coverage. Past respiratory drug launches (asthma, COPD) have performed well.

RBC says Arikayce, an antibiotic, continues to generate steady revenue and has strong potential for a major label expansion if the Phase 3 ENCORE study delivers positive results in 2026. Leonid Timashev estimates peak sales could reach $1 billion, valuing Arikayce at up to $25 per share.

Last week, Insmed reported a fourth-quarter loss of $1.32 per share, missing the consensus loss of $1.17. Sales reached $104.4 million, beating the consensus of $101.79 million.

Insmed anticipates full-year 2025 global Arikayce revenue of $405 million-$425 million, up 11%-17% year over year.

Price Action: INSM stock closed down by 3.17% to $77.49 at the last check Tuesday.

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