Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Insmed 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

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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The article Why Insmed Is Poised to Keep Pulling Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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