What We Learned at Dinner with INSM (ATS 2026)

Research evidence excerpt

What We Learned at Dinner with INSM (ATS 2026)

May 18, 2026

Valuation

We use a probability-adjusted DCF analysis to value INSM shares.

Risks

There are several potential risks to our positive investment thesis.

1. INSM is highly dependent on the commercial success of its only approved product,

Arikayce. If INSM is unable to successfully commercialize or maintain approval for

Arikayce, its business, financial condition, results of operations, and prospects will be

materially adversely affected. Commercial success of Arikayce will depend on various

factors, including the success of sales and marketing efforts; the degree of market

acceptance by physicians, patients, third-party payors, and others in the healthcare

community; competition; the success of a post-approval confirmatory clinical trial; and the

success of potential expansion into the front-line setting.

2. INSM’s future success depends on the successful clinical and commercial development

of other product candidates, including brensocatib and treprostinil palmitil inhalation

powder (TPIP). If clinical studies do not produce positive results or are delayed, or if serious

side effects are identified during drug development, INSM may experience delays, incur

additional costs, and ultimately be unable to commercialize its product candidates in the

U.S., Europe, Japan, or other markets.

3. INSM may need to raise additional funds and access capital to continue its operations.

INSM expects to expend substantial financial resources to commercialize, fund the

confirmatory post-marketing ARISE study, and, where applicable, seek regulatory approval

for Arikayce, as well as continue R&D of other product candidates. INSM may need to

raise additional capital to fund these activities. If adequate funds are not available to the