Insmed Inc's shares fell by 5.00% today, hitting a 5-day low, following a significant setback in its clinical development pipeline.
The decline is primarily due to the company's announcement that the Phase 2b BiRCh study of brensocatib failed to meet its primary and secondary efficacy endpoints, leading to a 16.1% plunge in shares. This failure raises concerns about the company's future prospects and investor confidence, especially as it also faces a legal investigation regarding potential securities law violations.
The implications of this news are profound, as Insmed's decision to discontinue brensocatib development marks a critical shift in its R&D strategy. Investors will be closely monitoring how the company reassesses its product pipeline and market positioning in light of these challenges.
Wall Street analysts forecast INSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSM is 218.44 USD with a low forecast of 157.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
Wall Street analysts forecast INSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INSM is 218.44 USD with a low forecast of 157.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Buy
1 Hold
0 Sell
Strong Buy
Current: 155.890
Low
157.00
Averages
218.44
High
263.00
Current: 155.890
Low
157.00
Averages
218.44
High
263.00
Barclays
Eliana Merle
Overweight
initiated
$231
2026-01-27
New
Reason
Barclays
Eliana Merle
Price Target
$231
AI Analysis
2026-01-27
New
initiated
Overweight
Reason
Barclays analyst Eliana Merle initiated coverage of Insmed with an Overweight rating and $231 price target. Barclays initiated coverage of 12 biotech stocks and assumed coverage of 11 with a positive view of the industry. The analyst likes the setup for the group in 2026. Many biotech stocks remain undervalued, the analyst tells investors in a research note. The firm expects continued mergers and acquisitions, "strong" underlying fundamentals, and less of a focus on drug pricing to act as "significant tailwinds."
Roth Capital
initiated
$212
2026-01-22
Reason
Roth Capital
Price Target
$212
2026-01-22
initiated
Reason
Roth Capital initiated coverage of Insmed with a Buy rating and $212 price target. The firm believes the company is well positioned for share upside in 2026. Brinsupri should continue to exceed Street expectations, the analyst tells investors in a research note. Roth assigns a 75% probability of success to Insmed's Phase 3 ENCORE study, which it says could unlock $1.3B in frontline Arikayce revenue.
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RBC Capital
Leonid Timashev
Outperform
maintain
$197 -> $200
2026-01-21
Reason
RBC Capital
Leonid Timashev
Price Target
$197 -> $200
2026-01-21
maintain
Outperform
Reason
RBC Capital analyst Leonid Timashev raised the firm's price target on Insmed to $200 from $197 and keeps an Outperform rating on the shares. The firm updated models for several biotech companies after meeting with managements.
Morgan Stanley
Maxwell Skor
Equal Weight
maintain
$158 -> $157
2026-01-08
Reason
Morgan Stanley
Maxwell Skor
Price Target
$158 -> $157
2026-01-08
maintain
Equal Weight
Reason
Morgan Stanley analyst Maxwell Skor lowered the firm's price target on Insmed to $157 from $158 and keeps an Equal Weight rating on the shares. The firm sees a continuation of U.S. small-to-mid cap biotech's outperformance in 2026 as commercial names transition from "capital consumers to producers" and Large Cap Biopharma faces a looming patent cliff, the analyst tells investors in an outlook note for the group.
About INSM
Insmed Incorporated is a global biopharmaceutical company. It is advancing a diverse range of approved and mid- to late-stage investigational medicines and drug discovery. Its advanced programs are in pulmonary and inflammatory conditions, including a therapy approved in the United States, Europe, and Japan to treat a chronic, debilitating lung disease. Its pre-clinical research programs encompass a range of technologies and modalities, including gene therapy, AI-driven protein engineering, protein manufacturing, RNA end-joining, and synthetic rescue. Its first commercial product, ARIKAYCE (amikacin liposome inhalation suspension), is used for the treatment of Mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. Its pipeline includes clinical-stage programs, brensocatib, TPIP, and INS1201 and pre-clinical research programs. Its INS1148 is an investigational monoclonal antibody.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
