Liquidia vs. Insmed: Which Pulmonary Stock Has Better Prospects Now?

Liquidia Corporation LQDA and Insmed INSM are both commercial-stage biopharmaceutical companies with a focus on developing innovative treatments for serious diseases.

LQDA is focused on developing and commercializing therapies for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), while Insmed is focused on the development of therapies targeting serious and rare indications.

The key point of overlap between the two companies is their focus on inhaled therapies for pulmonary hypertension, making them particularly relevant for a growth-stock comparison.

Liquidia specifically identifies Insmed’s treprostinil palmitil inhalation powder (TPIP) as a potential competitor to Yutrepia, with phase III studies underway.

Against this backdrop, choosing between the two stocks can be challenging. We therefore compare their fundamentals, growth prospects, potential challenges and valuation metrics to determine which stock offers the more compelling investment opportunity.

The Case for LQDA

Launched in June 2025, LQDA’s Yutrepia was approved by the FDA in May 2025 for the treatment of both PAH and PH-ILD.

The drug is an inhaled dry-powder version of treprostinil made with the company’s proprietary PRINT technology, designed to deliver medicine deeper into the lungs through an easy-to-use inhaler and allow higher doses than other inhaled treprostinil treatments.

Yutrepia’s net product sales reached $170.4 million in the second quarter, up from $6.5 million a year earlier, driven by higher volume.

Yutrepia appears to be gaining market share while expanding the inhaled prostacyclin market. As of July 31, 2026, Liquidia had received approximately 5,900 unique prescriptions since launch and started more than 5,000 patients on therapy. As of the aforementioned date, more than 1,100 physicians had prescribed Yutrepia since its launch, with more than 30% having written prescriptions for at least five patients. The prescription-to-start conversion rate remained above 85%.

Strong Yutrepia sales helped drive the company's fourth consecutive profitable quarter, with net income reaching $74.7 million in the second quarter.

Liquidia currently generates revenues from sales of Yutrepia inhalation powder, and through a profit-sharing arrangement with Sandoz under a promotion agreement originally signed in August 2018 and subsequently amended. The agreement allows Liquidia to share in the profits generated from sales of Sandoz's generic treprostinil Injection in the United States.

LQDA plans to explore Yutrepia in additional indications, including pulmonary hypertension associated with chronic obstructive pulmonary disease, idiopathic pulmonary fibrosis (IPF) progressive pulmonary fibrosis (PPF) and Raynaud’s phenomenon associated with systemic sclerosis.

Liquidia is leveraging its expertise in respiratory and vascular diseases to advance a pipeline of novel therapies that could support long-term growth. A key pipeline asset is L606, an investigational liposomal formulation of treprostinil licensed from Pharmosa Biopharm, designed for twice-daily administration using a short-duration, next-generation nebulizer. It is also being evaluated in PAH and PH-ILD. The phase III Re-Spire study on L606 is currently enrolling.

The Case for INSM

Insmed’s portfolio includes two commercial products — Arikayce and Brinsupri.

Arikayce is indicated for the treatment of refractory mycobacterium avium complex lung disease as part of a combination antibacterial drug regimen in adult patients with limited or no alternative treatment options. The drug is also approved for a similar indication in Europe and Japan.

Insmed’s portfolio received a significant boost with the FDA approval of Brinsupri (brensocatib) in 2025. The drug is an oral, once-daily treatment for non-cystic fibrosis bronchiectasis (referred to as bronchiectasis or NCFB) in patients 12 years of age and older. The drug also received approval in the EU in November 2025.

Brinsupri’s initial market uptake has been strong. Insmed raised its full-year 2026 revenue guidance for the drug to $1.25-$1.40 billion from its previous forecast of at least $1 billion.

Insmed is also advancing several clinical-stage programs in respiratory diseases, including TPIP and INS1148.

TPIP is an inhaled dry powder formulation of the treprostinil prodrug treprostinil palmitil, which may offer a differentiated product profile for PH-ILD, PAH, PPF and IPF.

The company has made encouraging progress with the program. Insmed is currently enrolling patients in the PALM-ILD trial, a phase III study of TPIP in patients with PH-ILD. It is also actively enrolling patients in the PALM-PAH trial, a phase III study of TPIP in patients with PAH.

Last month, the company reported positive 12-month data from the ongoing open-label extension study of TPIP in patients with PAH.

The company also plans to initiate a phase III study of TPIP in patients with PPF in the second half of 2026, followed by a phase III study in IPF in the first half of 2027.

Insmed is advancing INS1148 in a phase II program initially focused on PPF and IPF. The company is also exploring additional diseases where inhibiting the inflammatory functions of Stem Cell Factor 248 (SCF248) could provide therapeutic benefits.

Beyond respiratory diseases, Insmed is evaluating INS1201, an intrathecally delivered gene therapy for Duchenne muscular dystrophy, and INS1202, an intrathecally delivered gene therapy for amyotrophic lateral sclerosis.

A Look at Estimates: LQDA vs INSM

The Zacks Consensus Estimate for LQDA’s 2026 sales implies a year-over-year increase of 340.72%, while that for earnings per share (EPS) suggests a year-over-year improvement of 421.25%.

The Zacks Consensus Estimate for 2026 EPS has moved south to $2.57 from $2.97 and that for 2027 EPS has decreased to $4.38 from $4.81 in the past 60 days.

LQDA’s Estimate Movement

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The Zacks Consensus Estimate for INSM’s 2026 sales implies a year-over-year increase of 194.19%, while that for EPS suggests a year-over-year increase of 74.14%.  Loss estimates for 2026 have improved to $1.66 from $2.63 in the past 60 days. EPS estimates for 2027 have moved north to $2.61 from 89 cents during the said time frame.

INSM’s Estimate Movement

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Price Performance and Valuation of LQDA and INSM

From a price-performance perspective, LQDA has fetched better returns than INSM so far this year. Shares of LQDA have surged 106.9%, while those of INSM have lost 28.5%. The industry has gained 12.6% in the said period.

Image Source: Zacks Investment Research

From a valuation standpoint, INSM is more expensive than LQDA. LQDA’s shares currently trade at 6.53X forward sales, lower than 10.65X for INSM.

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Which Stock Is a Better Pick for Now?

Since both LQDA and INSM stocks currently carry a Zacks Rank #3 (Hold), choosing one over the other could be tricky. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Liquidia stands out for its impressive commercial momentum. Yutrepia’s rapid uptake has driven strong revenue growth and profitability, while its potential expansion into additional indications provides further upside. LQDA also trades at a lower forward-sales multiple than INSM. However, the company remains heavily reliant on Yutrepia, and competition from emerging inhaled therapies represents a key risk. The downward revisions to EPS estimates also warrant caution.

INSM offers a more diversified growth story. Brinsupri’s strong launch and higher-than-expected 2026 revenue guidance provide a solid commercial foundation, while Arikayce adds an established revenue stream. Insmed has a broader pipeline, with TPIP potentially expanding the company’s presence in the pulmonary hypertension market and additional programs targeting PPF, IPF and other serious diseases.

Although INSM is more expensive on a forward-sales basis and its shares have significantly underperformed LQDA this year, its broader commercial base and deeper pipeline reduce its reliance on a single product. Continued execution on Brinsupri and positive clinical progress with TPIP could provide additional catalysts.

Hence, we believe INSM’s diversified revenue base, strong Brinsupri opportunity and broader pipeline make it the more compelling choice for investors seeking a more sustainable long-term growth story.


 

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This article originally published on Zacks Investment Research (zacks.com).

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