Goldman Sachs Sees High Merger Odds For This Large-Cap Biopharma In Trump 2.0 Era: Retail Has Been Alert
Insmed specializes in treatments for rare and serious diseases and is currently advancing its lead asset, brensocatib, a potential first-in-class therapy for bronchiectasis.
FollowGoldman Sachs has flagged Insmed Inc. as a potential merger candidate under the pro-business policies of the incoming Donald Trump administration, CNBC reported.
The investment bank estimates a 30%-50% chance that Insmed could be part of a deal in 2025.
Goldman projects that U.S. merger and acquisition activity will increase by 25% in 2025, surpassing levels seen in 2023 and 2024.
Insmed specializes in treatments for rare and serious diseases and is currently advancing its lead asset, brensocatib, a potential first-in-class therapy for bronchiectasis — a severe lung condition with no FDA-approved treatments.
Last May, the company got a boost after Phase 3 trial results for brensocatib showed that it met its goals at all dosage levels.
That helped Insmed’s stock post a whopping 123% rise in 2024, far outpacing the S&P 500′s gains of over 23%.
Analysts called the data a “best-case scenario” for Insmed and believed the drug could achieve over $1 billion in annual sales, according to a Barron’s report.
The company submitted a New Drug Application (NDA) for brensocatib to the U.S. FDA in December and anticipates a potential U.S. launch by the third quarter this year, pending approval.
Regulatory submissions in the EU, UK, and Japan are planned for 2025, with commercial launches expected in 2026.
Insmed also markets Arikayce, an inhaled treatment for certain lung infections, and projects 2025 sales of $405 million-$425 million, reflecting 11%-17% growth year-over-year.
While Insmed’s follower base on Stocktwits has grown by 35% over the past year and message volume doubled over the last week following its updates at the J.P. Morgan Healthcare Conference, sentiment has currently dipped into ‘bearish’ territory.
This shift may reflect concerns about the company missing profit estimates in three of the past four quarters, despite bullish views from 17 analysts who reportedly rate the stock as either a ‘strong buy’ or ‘buy’ and see more big gains ahead.
As of Thursday afternoon, Insmed shares have gained just about 3% in 2025, but remain in focus for retail investors eyeing M&A potential and clinical milestones.
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