Insmed Tops Q2 Earnings Estimates, Stock Soars 34% on Brinsupri Uptake

Quarterly revenues soared 296% year over year to $425.5 million, entirely from the sales of its two marketed products. The reported figure beat the Zacks Consensus Estimate of $389.7 million.

Shares of Insmed jumped 34% yesterday following the earnings announcement. The stock's upside was driven by strong organic patient uptake of Brinsupri during the quarter, prompting management to significantly raise its sales guidance.

Year to date, the stock has lost 24% against the industry’s nearly 4% growth.

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INSM’s Product Revenues Top Expectations

Insmed currently has two marketed drugs, Arikayce and Brinsupri, in its portfolio. While Arikayce is approved to treat refractory mycobacterium avium complex (MAC) lung disease in adults with limited or no treatment options, Brinsupri is approved for non-cystic fibrosis bronchiectasis (NCFB).

Sales of Arikayce rose 8% year over year to $116.3 million, driven by strong growth across ex-U.S. markets. The metric also beat the Zacks Consensus Estimate of $113.9 million.

This was the third full quarter in which Insmed generated revenues from Brinsupri sales since its approval in August 2025. The drug contributed $309.2 million to the top line during the quarter, up from $207.9 million in the previous quarter. The reported figure also surpassed the Zacks Consensus Estimate of $275.8 million.

Around 7,000 new patients started Brinsupri during the quarter, ahead of management's prior expectation of approximately 6,300. Importantly, management stated that all these patient starts represented organic demand, with no contribution from the "ready and waiting" patient pool — those who were already aware of the drug before approval and began treatment quickly once it became available. Insmed expects roughly 7,000 new patient starts per quarter through the remainder of 2026.

Management also noted favorable payer access for Brinsupri, with an approximately 90% approval rate and approvals taking less than a week for most patients. Persistence and other patient-use metrics remained at or ahead of Insmed's internal benchmarks, supporting confidence in the growth trajectory.

INSM’s Operating Expenses Rise

Research and development expenses rose 18.5% year over year to $210 million. The increase was primarily caused by higher employee-related costs and increased clinical development expenses.

Selling, general and administrative expenses climbed 60% year over year to $247.5 million. Higher professional fees, external costs and employee-related expenses associated with Brinsupri commercial activities led to the increase.

As of June 30, 2026, Insmed had cash, cash equivalents and marketable securities of around $1.2 billion, in line with the previous quarter’s level.

INSM Raises Brinsupri Sales Guidance

Following the stronger-than-expected launch, Insmed raised its 2026 Brinsupri revenue guidance to $1.25-$1.40 billion from its previous expectation of at least $1 billion.

The company also increased its estimated global peak sales for Brinsupri to more than $7 billion from the previous guidance of over $5 billion. Management cited expectations for growth in the addressable bronchiectasis market through improved diagnosis and greater disease awareness.

Insmed maintained its 2026 Arikayce revenue guidance at $450-$470 million.

The company continues to expect to reach cash-flow positivity in 2027 without raising additional capital.

Updates on INSM’s Pipeline

Last month, Insmed submitted a regulatory filing with the FDA seeking to expand Arikayce's use to newly diagnosed patients with MAC lung disease. The company also plans discussions with Japanese regulators later this year to support a potential label expansion in Japan.

Insmed continues to advance its investigational treprostinil palmitil inhalation powder (TPIP) program across multiple pulmonary indications. The company is currently enrolling patients in separate late-stage studies for pulmonary hypertension associated with interstitial lung disease (PH-ILD) and pulmonary arterial hypertension (PAH).

The company remains on track to initiate two additional late-stage TPIP studies, one in progressive pulmonary fibrosis (PPF) in the second half of 2026 and another in idiopathic pulmonary fibrosis (IPF) in the first half of 2027.

Like Brinsupri, Insmed raised its peak sales estimate for TPIP to more than $6 billion from the previous guidance of over $2 billion. This reflects increased confidence following encouraging clinical data and the expansion of the program into additional indications.

INSM’s Zacks Rank

Insmed currently carries a Zacks Rank #3 (Hold).

Our Key Picks Among Biotech Stocks

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, earnings per share (EPS) estimates for Harmony Biosciences have risen from $3.20 to $3.33 for 2026. Over the same period, EPS estimates have increased from $3.64 to $3.87 for 2027. HRMY shares have risen about 4% year to date.

Harmony Biosciences missed on earnings in three of the trailing four quarters and met on one occasion, delivering an average negative surprise of 13.97%.

Over the past 60 days, estimates for Liquidia’s 2026 EPS have increased to $3.02 from $2.97. Over the same period, EPS estimates for 2027 have risen from $4.81 to $5.31. LQDA shares have skyrocketed 159% so far this year.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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