InsmedINSM incurred a loss of 46 cents per share in the third quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 34 cents. The company had incurred a loss of $1.75 per share in the year-ago quarter.
Quarterly revenues surged 268% year over year to $524.4 million, driven by strong sales of its two marketed products, Brinsupri and Arikayce. The reported figure beat the Zacks Consensus Estimate of $501 million.
Shares of Insmed jumped around 15% yesterday following the earnings announcement. The stock's upside was driven by stronger-than-expected revenues and robust Brinsupri sales growth. Investors were also encouraged by the company's decision to raise its full-year 2026 sales guidance for both Brinsupri and Arikayce.
Year to date, the stock has lost 35.9% against the industry's 8.3% 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).
Global Arikayce sales increased 9% year over year to $124.4 million, primarily driven by strong growth across ex-U.S. markets. The metric was in line with the Zacks Consensus Estimate of $123.8 million.
U.S. revenues rose 2% year over year to $75.5 million. International revenues climbed 21% to $48.9 million, reflecting continued expansion outside the domestic market.
Arikayce continues to generate revenue growth in its ninth year on the market, supporting Insmed's commercial performance alongside Brinsupri's expanding sales contribution.
Brinsupri generated revenues of $400.1 million, reflecting a 29% sequential increase from $309.2 million in the previous quarter. The figure also surpassed the Zacks Consensus Estimate of $377.5 million. U.S. sales accounted for the bulk of revenues at $398.1 million, while international markets contributed $2 million.
The strong sequential growth was primarily driven by continued commercial momentum in the United States, highlighting robust demand for Brinsupri and its growing contribution to Insmed's overall revenues.
INSM's Operating Expenses Rise
Research and development expenses increased 44.8% year over year to $270 million. The increase was primarily driven by higher manufacturing, clinical development and research costs associated with the company's treprostinil palmitil inhalation powder (TPIP) program.
Selling, general and administrative expenses increased 35.8% year over year to $253 million. Higher professional fees, external expenses and employee-related costs associated with Brinsupri's commercialization primarily drove the increase.
As of Sept. 30, 2026, Insmed had cash, cash equivalents and marketable securities totaling approximately $1.1 billion, in line with the previous quarter's level.
Insmed Raises 2026 Revenue Guidance
Following strong commercial performance, Insmed raised the lower end of its 2026 revenue guidance for both of its marketed products. The company expects Brinsupri to generate revenues of $1.35-$1.40 billion in 2026, up from its previous forecast of $1.25-$1.40 billion.
The company also increased its 2026 revenue outlook for Arikayce to $460-$470 million from the earlier expectation of $450-$470 million.
Management continues to anticipate peak annual revenues exceeding $7 billion for Brinsupri, $6 billion for TPIP and $1 billion for Arikayce.
INSM's Recent Key Developments Across Product & Pipeline
In August, Japanese regulators approved Brinsupri for non-cystic fibrosis bronchiectasis (NCFB) in patients aged 12 years and older. Insmed subsequently launched the drug in Japan in October, expanding its commercial reach.
In September, the FDA accepted Insmed's supplemental new drug application seeking to expand Arikayce's indication in MAC lung disease. The application received priority review with the final decision expected by Jan. 28, 2027. Insmed also plans to submit a similar regulatory filing in Japan before this year's end seeking a potential label expansion.
Meanwhile, Insmed continues to advance TPIP, an investigational dry-powder formulation of treprostinil palmitil, a prodrug of treprostinil, across several respiratory indications such as pulmonary arterial hypertension (PAH), pulmonary hypertension associated with interstitial lung disease (PH-ILD), progressive pulmonary fibrosis (PPF), and idiopathic pulmonary fibrosis (IPF).
Enrollment in the phase III PALM-ILD study, evaluating TPIP for PH-ILD, has exceeded 35%, with enrollment completion expected in the first half of 2028.
The company also initiated phase III studies such as PALM-PAH and PALM-PPF in July and September to evaluate the candidate for the treatment for PAH and PPF, respectively. Another late-stage study in patients with IPF is expected to begin in the first half of 2027.
Beyond TPIP, Insmed is advancing INS1148 in a phase II program, initially targeting IPF, with plans to explore its potential in PPF and other fibrotic diseases. Meanwhile, last month, the company began enrolling healthy volunteers in a phase I study of INS1033, a DPP1 inhibitor being developed for rheumatoid arthritis.
The company also completed enrollment in the phase I ASCEND study of INS1201 for Duchenne muscular dystrophy, while enrollment continues in the phase I ARMOR study of INS1202 for amyotrophic lateral sclerosis.
Insmed, Inc. Price, Consensus and EPS Surprise
Insmed, Inc. price-consensus-eps-surprise-chart | Insmed, Inc. Quote
INSM's Zacks Rank & Stocks to Consider
Insmed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are TG TherapeuticsTGTX, currently sporting a Zacks Rank #1 (Strong Buy), and Amneal PharmaceuticalsAMRX and Iovance BiotherapeuticsIOVA, carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX's shares have risen 94.9% year to date.
TG Therapeutics' earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX's shares have surged 69.5% year to date.
Amneal Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.
Over the past 30 days, loss per share estimates for Iovance Biotherapeutics have narrowed from 49 cents to 45 cents for 2026. Over the same period, estimates for loss per share have also improved from 29 cents to 22 cents for 2027. IOVA shares have skyrocketed 250.2% year to date.
Iovance Biotherapeutics beat estimates in three of the trailing four quarters and met in the remaining one, with the average surprise being 16.82%.
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This article originally published on Zacks Investment Research (zacks.com).
