The recent equity raise and strong sales from ARIKAYCE have resulted in a cash position of approximately $1.9 billion, the strongest in company history.
Operational expenses increased due to launch preparations and pipeline investments, but cash burn is expected to decrease as revenue from brensocatib begins.
Insmed anticipates up to 10 key milestones in the next 12 months, with a focus on maximizing value through strategic capital deployment and pipeline execution.
Adjusted EBITDA margin expanded by approximately 260 basis points year-over-year to 12.3%.
Balance sheet remains strong with $550 million in cash and no debt.
Free cash flow was $15 million for the quarter, driven by improved working capital and reduced accounts receivable.
Multiomics gross margin declined 500 basis points to 42.6%, due to product mix, lower volume in Sanger Sequencing and Gene Synthesis, and nonrecurring items.
Multiomics segment revenue was $66 million, up 4% reported and 3% organic, driven by next-generation sequencing growth and large customer deals.
Non-GAAP EPS for the quarter was $0.19.
Non-GAAP gross margin improved to 48.5%, up 180 basis points year-over-year, driven by favorable sales mix and operational efficiencies.
Q3 revenue totaled $144 million, flat year-over-year on a reported basis and down 2% organically.
Sample Management Solutions (SMS) revenue was $78 million, down 4% reported and 6% organic, impacted by softer bookings and timing delays.
SMS segment gross margin increased 760 basis points to 53.6%, reflecting favorable product mix and cost management.
Gross margin was 31% excluding noncash items, with expectations for improvement due to restructuring and manufacturing optimization.
Iovance reported $60 million in total revenue for Q2 2025, a 22% increase over the prior quarter, with $54 million from Amtagvi infusions and $6 million from Proleukin.
Net cash burn is expected to be less than $245 million over the next four quarters, with a cash position of approximately $307 million sufficient to fund operations into Q4 2026.
Operating expenses increased to approximately $117 million from $102 million year-over-year, driven by higher headcount, clinical trials, and marketing costs.
The company announced a strategic restructuring including a 19% workforce reduction expected to generate over $100 million in annual cost savings starting Q4 2025.
Commercial Transformation and Sales Process Overhaul
The commercial transformation aims to capitalize on large enterprise and IDN opportunities, with a focus on moving from early-stage to later-stage deals.
The company has retooled its sales team to target hospital CNOs and other key decision-makers, emphasizing change management and clinical benefits.
Progress includes a more disciplined approach to sales forecasting, pipeline management, and deal closure, setting the stage for sustained growth.
Capital Allocation and Shareholder Return Strategy
The company is committed to returning capital to shareholders through share repurchases and debt reduction, leveraging improved EBITDA and free cash flow.
Management announced a plan to reduce stock-based compensation as a percentage of revenue to mid- to high-single digits in 2026.
The company has no near-term plans for acquisitions, focusing instead on profitability and organic growth.
Leadership emphasizes that profitability improvements will help close the gap between intrinsic and market value, benefiting shareholders.
Dafinchi