Analyst Weighs Patent Cliff Risks Against Insmed’s (INSM) Growth Story

Insmed Inc. (NASDAQ:INSM) is among the best debt-free stocks to buy now. On January 9, 2026, the company reported strong preliminary 2025 results, with total revenue reaching approximately $606 million, up 67% year over year, driven by continued ARIKAYCE growth and the first full year of BRINSUPRI, both of its leading therapies. This topline growth came in at the top end of the current consensus and was 11% above the consensus average of $545 million.

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On a full-year basis, ARIKAYCE generated about $434 million globally, exceeding guidance, while BRINSUPRI contributed roughly $173 million in U.S. sales, supported by solid adoption by medical professionals. Management also outlined a robust 2026 outlook, including an expected EU launch of BRINSUPRI, ARIKAYCE revenue guidance of $450-$470 million, and multiple upcoming late-stage clinical readouts.

Just before the results, Morgan Stanley analyst Maxwell Skor reviewed Insmed Inc. (NASDAQ:INSM) and lowered his price target marginally to $157 from $158, keeping his Equal Weight rating intact. The analyst remains cautious on large-cap biopharma names, including INSM, as he believes these companies will be affected by the loss of exclusivity for some of their best-selling medicines, commonly referred to as “the patent cliff.”

However, the analyst’s view remains favorable toward U.S. small- to mid-cap biotech, as he expects this space to outperform in 2026 as well.

Insmed Inc. (NASDAQ:INSM) is a biopharmaceutical company that develops and commercializes therapies for patients with serious and rare diseases. The company’s most advanced programs focus on pulmonary and inflammatory conditions.

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Disclosure: None. This article is originally published at Insider Monkey.