We recently published a list of 10 Best Cancer Stocks to Invest in for Long-Term Gains. In this article, we are going to take a look at where Insmed Incorporated (NASDAQ:INSM) stands against other best cancer stocks to invest in for long-term gain.
Surging Cancer Cases and Costs Drive Growth in the Global Oncology Market
After cardiovascular disease, cancer is the second most common cause of mortality worldwide. In January 2023, the American Cancer Society released figures indicating that by the end of 2023 alone, there would be approximately 1,958,310 cancer patients in the United States. Compared to 2010, this is a 28% increase. In the United States, it was anticipated that over 600,000 people would die from cancer in 2024, and over 2 million new cases would be diagnosed. Cancer treatment expenses are rising in tandem with the growing number of cancer sufferers. In 2020, cancer treatment in the United States cost about $200 billion, but by 2030, the total cost is expected to surpass $245 billion.
Over the past 20 years, global funding for cancer research has increased dramatically, according to the “Oncology Pharmaceuticals Market 2024” report. Between 2017 and 2022, the FDA authorized 161 new cancer medicines, demonstrating the rapid advancement of cancer treatment. According to these figures, oncology is among the most extensive fields within the field of biological sciences. From diagnosis to therapy, the whole cancer care process is covered by the oncology industry.
Global biotech and pharmaceutical businesses are always working to create more potent cancer treatments. Fortune Business Insights predicts that the scope of this undertaking will only grow shortly. In 2023, the global market for cancer medications was estimated to be worth $201.75 billion. It is projected to increase from $220.80 billion in 2024 to $518.25 billion by 2032 at a compound annual growth rate (CAGR) of 11.3%.
The development of tailored immunotherapies for cancer treatment and the rising incidence of cancer worldwide are some of the main reasons propelling the market for oncology medications. Investing in businesses related to oncology is a profitable venture due to this growth rate. The global market for oncology medications is dominated by North America. In 2023, its market share was 45.92%.
Precision Oncology and AI Revolutionize Cancer Treatment and Diagnostics
The market for precision oncology exhibits comparable patterns. Precision oncology, according to the National Institutes of Health (NIH), is a type of treatment in which doctors select therapies while taking into account each patient’s unique tumor’s DNA signature. In 2024, the global precision oncology market was estimated to be worth $115.8 billion, according to data from Grand View Research. A compound annual growth rate (CAGR) of 8.05% is projected between 2025 and 2030. The rising need for diagnostic products, technical advancements, avoiding specific medication resistance, and the growing reduction of adverse effects of cancer treatments are all factors contributing to this growth.
AI usage is rapidly growing in the field of cancer. A study by Mordor Intelligence projects that the size of the AI in the cancer industry will be approximately $1.98 billion in 2025 and will grow to approximately $9.04 billion by 2030. This represents growth from 2025 to 2030 at a CAGR of 35.51%.
AI’s growing use in the diagnosis, analysis, and treatment of complicated oncology datasets is simplifying the process and lessening the strain on medical staff and hospital infrastructure. Although North America is the largest market for AI in oncology, the Asia-Pacific area is the one with the quickest rate of growth. Given this, we will take a look at some of the best cancer stocks for long term gains.
Our Methodology
In our methodology, we first filtered cancer stocks based on their 5-year average returns. From this pool, we identified the top 10 stocks with the highest number of hedge fund holders as of Q4 2024, according to the Insider Monkey database. In cases where multiple stocks had the same number of hedge fund holders, we used their 5-year total returns as a tiebreaker, ranking the stock with the higher return above the others.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A biopharmaceutical research team taking notes in front of a laboratory’s microscope.
Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 72
Total 5-Year Return: 198.95%
Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical company focused on developing and marketing treatments for serious and rare diseases, including cancer. It generates revenue through global drug sales and licensing. In oncology, the company is developing rhIGFBP-3, a protein that may enhance chemotherapy effectiveness in breast cancer, aiming to improve treatment outcomes for patients with high unmet medical needs.
In Q4 2024, Insmed Incorporated (NASDAQ:INSM)’s total revenue rose 24.8% year-over-year to $104.4 million, bringing full-year 2024 revenue to $363.7 million, a 19.2% increase. This growth was primarily driven by the continued strong uptake of ARIKAYCE, especially in Japan (up 33.4%) and Europe/Rest of World (up 38.8%), supported by successful market expansion and increasing adoption for treating refractory MAC lung disease. In the U.S., ARIKAYCE revenue grew 13.7% to $254.8 million.
Insmed Incorporated (NASDAQ:INSM) reported a widened net loss of $ 235.5 million in Q4 2024, or $1.32 per share, compared to $186.1 million in Q4 2023. The full-year net loss deepened to $913.8 million, or $5.57 per share, from $749.6 million in 2023. R&D expenses rose to $598.4 million due to increased investment in late-stage programs and launch readiness. SG&A expenses also increased significantly to $461.1 million, reflecting commercial scale-up ahead of the brensocatib launch.
Brensocatib received FDA Priority Review with a PDUFA date of August 12, 2025, and a potential U.S. launch in Q3 2025. The pipeline remains active, with multiple late-stage readouts anticipated in 2025–2026, including label expansion for ARIKAYCE and trials for TPIP in PAH. Additionally, Insmed Incorporated (NASDAQ:INSM) is expanding into gene therapy, with an IND cleared for its DMD program and progress reported in ALS and Stargardt disease.
Overall, INSM ranks 1st on our list of best cancer stocks to invest in for long-term gain. While we acknowledge the potential of cancer companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
