Why Insmed Is Poised to Keep Pulling Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Insmed (NASDAQ: INSM  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Insmed and see what CAPS investors are saying about the stock right now.

Insmed facts

Headquarters (founded)

Monmouth Junction, N.J. (1999)

Market Cap

$347.2 million

Industry

Biotechnology

Trailing-12-Month EBITDA

($46.0 million)

Management

CEO William Lewis (since 2012)
CFO Andrew Drechsler (since 2012)

Return on Equity (average, past 3 years)

29.2%

Cash/Debt

$81.6 million / $19.5 million

Competitors

Forest Labs
Gilead Sciences
Novartis

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 18% of the 28 All-Star members who have rated Insmed believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, touched on the stock's seemingly unsustainable valuation:

I see the market cap over [$300M] excessive given the unresolved carcinogenicity concerns, the weak results of CLEAR-108 which met the primary endpoint in name only, and the questionable commercial prospects of an antibiotic for non-tuberculous mycobacterial infection even if the results of TARGET-NTM and a future phase III trial are positive.

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Read/Post Comments (3) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 16, 2013, at 10:29 AM, jad9000 wrote:

    Total nonsense. Do your homework.

  • Report this Comment On July 17, 2013, at 12:31 PM, tjsimone wrote:

    I am not sure how much credibility Brian has; He only uses zzlangerhans quotes in all his articles on Biotech stocks...

    Simple math tells you, as Brian and zzlangerhans bash....

    "On CAPS, 18% of the 28 All-Star members who have rated Insmed believe the stock will underperform the S&P 500 going forward"

    So 5 Caps All-Stars think it will under-perform. 5 from 28 leaves....23 who think it will either perform in-line or out-perform....I love those odds...

    Maybe the story needs to be re-written, and say that 82%, a pretty convincing number if you ask me, think it will out-perform!

  • Report this Comment On August 19, 2013, at 1:55 PM, jad9000 wrote:

    Both the writer and the person quoted are utterly clueless. Read the most recent presentations that completely debunk everything written here - as the sp continues to rise. By October we will be at highs and rising - and this article will be exposed for what it is - garbage.

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