Insmed raises $750 million in public offering of common stock

BRIDGEWATER, N.J. - Biopharmaceutical company Insmed Incorporated (NASDAQ:INSM) has priced an underwritten public offering of 7,812,500 shares of its common stock at $96.00 per share, the company announced Wednesday. The pricing comes as the stock trades near its 52-week high of $98.95, having surged 34.7% in the past week according to InvestingPro data.

The offering is expected to generate approximately $750 million in gross proceeds before deducting underwriting discounts, commissions and other expenses. Insmed has also granted underwriters a 30-day option to purchase up to an additional 1,171,875 shares. The company maintains a strong liquidity position with a current ratio of 5.86, as reported by InvestingPro.

The company plans to use the proceeds to fund research and development of brensocatib, commercialization activities for ARIKAYCE, further development of treprostinil palmitil inhalation powder and other research initiatives.

Goldman Sachs & Co. LLC, Leerink Partners, BofA Securities, Jefferies and J.P. Morgan are serving as joint book-running managers for the offering, with Stifel acting as co-lead manager. The offering is expected to close on June 13, 2025, subject to customary closing conditions.

The offering is being made pursuant to Insmed’s shelf registration statement on Form S-3 that became effective on May 19, 2023.

Insmed focuses on developing therapies for pulmonary and inflammatory conditions. The company currently has one approved therapy for a chronic lung disease available in the United States, Europe, and Japan, along with several mid- to late-stage investigational medicines in its pipeline. While posting strong revenue growth of 20.77% over the last twelve months, detailed analysis and valuation metrics are available in the comprehensive Pro Research Report, one of 1,400+ company deep-dives exclusive to InvestingPro subscribers.

The company maintains headquarters in Bridgewater, New Jersey, with additional offices and research locations throughout the United States, Europe, and Japan, according to the press release statement.

In other recent news, Insmed Incorporated announced a $650 million public offering of common stock, with Goldman Sachs & Co. LLC and Leerink Partners acting as joint book-running managers. The offering includes a 30-day option for underwriters to purchase an additional $97.5 million of shares, although the completion and terms are subject to market conditions. RBC Capital raised its price target for Insmed to $106 from $99, maintaining an Outperform rating, following positive data for the company’s TPIP treatment in pulmonary arterial hypertension (PAH). Similarly, H.C. Wainwright increased its price target to $120 from $90, citing positive Phase 2A and Phase 2B study results for TPIP. Mizuho also raised its price target to $110 from $96, highlighting the potential for TPIP to become a new standard of care in PAH. BofA Securities joined in by raising its price target to $109 from $94, emphasizing TPIP’s strong data and potential as a foundational treatment. These developments underscore significant optimism from analysts regarding Insmed’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.