Insmed Misses on Q3 Earnings, Stock Rises on Strong Brinsupri Uptake

Core Insights - Insmed reported a Q3 2025 loss of $1.75 per share, wider than the Zacks Consensus Estimate of a loss of $1.32, compared to a loss of $1.27 per share in the same quarter last year [1][9] - Quarterly revenues increased by 52% year over year to over $142.3 million, surpassing the Zacks Consensus Estimate of approximately $115 million, driven by sales of its two marketed products [1][9] Financial Performance - Sales of Arikayce rose 22% year over year to $114.3 million, with domestic sales increasing by 11% to $74 million and ex-U.S. sales surging by 52% to $40.3 million [3] - Brinsupri generated $28.1 million in its first quarter of sales, contributing to strong investor optimism following its commercial launch [4][9] - Research and development expenses increased by 24% year over year to $186.4 million, attributed to a rise in employee headcount and clinical expenses [7] - Selling, general and administrative expenses rose by 57% to $186.4 million, driven by higher professional service costs and increased compensation for a larger workforce [8] Market Position and Guidance - Insmed's stock has increased by 181% year to date, compared to the industry's 11% growth [6] - The company raised its sales guidance for Arikayce to between $420 million and $430 million for the full year, indicating nearly 17% year-over-year growth at the midpoint [11] Pipeline Developments - Insmed has completed patient enrollment in the phase III ENCORE study for Arikayce, with top-line data expected in the first half of 2026 [12] - The EMA recommended approval for Brinsupri to treat NCFB in patients aged 12 and older, with a final decision expected before year-end [13] - Insmed is evaluating Brinsupri in the phase IIb BiRCh study for chronic rhinosinusitis and in the phase II CEDAR study for hidradenitis suppurativa, with data readouts expected in early 2026 [14] - The company plans to initiate two late-stage studies on its investigational treprostinil palmitil inhalation powder (TPIP) next year for pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease [15] - Insmed has completed dosing in the early-stage ASCEND study for its gene therapy INS2101 for Duchenne muscular dystrophy and received FDA clearance for clinical studies on INS1202 for ALS patients [16]