Insmed's Q4 Loss Wider Than Expected, Sales In Line With Estimates

Core Viewpoint - Insmed reported a wider-than-expected loss for Q4 2024, with total revenues showing a year-over-year increase driven by its sole marketed drug, Arikayce [1][4][7]. Financial Performance - Insmed's Q4 2024 loss was $1.32 per share, compared to the Zacks Consensus Estimate of a loss of$1.15 and a loss of $1.28 in the same quarter last year [1]. - Total quarterly revenues reached$104.4 million, reflecting a 25% increase year over year, aligning with the Zacks Consensus Estimate [1]. - For the full year 2024, total revenues were $363.7 million, up 19$5.57, worsening from a loss of $5.34 in the previous year [7]. Product Sales - Revenues were solely generated from Arikayce, which saw sales increase by 16$67.8 million in the U.S., 47% to $30.7 million in Japan, and 33$5.9 million in Europe and other regions [5][4]. Expenses - Research and development (R&D) expenses rose by 31% year over year to 179.7 million, while selling, general and administrative (SG&A) expenses increased by 59% to 142.5 million, attributed to higher employee compensation and benefits [6]. Cash Position - As of December 31, 2024, Insmed had cash, cash equivalents, and marketable securities totaling approximately $1.4 billion, down from$1.5 billion as of September 30, 2024 [6]. Guidance and Future Outlook - Management maintained its sales guidance for Arikayce for 2025, expecting product sales to be between $405 million and$425 million, indicating a 14% year-over-year growth at the midpoint [8]. - The company completed enrollment of 425 patients in the phase III ENCORE study for Arikayce, with top-line data expected in Q1 2026 [9]. - Insmed's regulatory filing for brensocatib in bronchiectasis has been accepted by the FDA, with a decision anticipated by August 12, 2025 [10]. Pipeline Developments - Insmed is also evaluating brensocatib in a phase IIb study for chronic rhinosinusitis without nasal polyps, with data expected by the end of this year [11]. - The company plans to start a clinical study for its lead gene therapy INS2101 for Duchenne muscular dystrophy by the first half of 2025 [12].