Piper Sandler has reiterated its Overweight rating on shares of Gossamer Bio Inc . (NASDAQ: NASDAQ:GOSS) with a price target of $15.00.
The firm's positive stance is based on upcoming milestones for the company, including the completion of Phase 3 enrollment in the first quarter of 2025 and data readout in the fourth quarter of 2025.
The analyst noted that Gossamer Bio presents a unique investment opportunity with no financial risk and several potential stock-moving events on the horizon.
Gossamer Bio recently presented additional data on seralutinib at the European Respiratory Society (ERS) meeting, which has increased confidence in the probability of success for the Phase 3 PROSERA study expected in the fourth quarter of 2025.
The company showcased two key presentations on the Phase 2 TORREY Open Label Extension (OLE) data, highlighting sustained efficacy in patients up to 72 weeks. Notably, those in the PVR responder subgroup, defined by more than 15% improvements in TORREY, showed the most significant enhancements in pulmonary vascular resistance (PVR), mean pulmonary arterial pressure (mPAP), and cardiac output.
In addition to the positive clinical outcomes, seralutinib has shown continued and deepening effects on circulating biomarkers associated with proliferation, inflammation, and matrix remodeling.
These findings further support the mechanism of action (MoA) of seralutinib, underpinning the drug's long-term efficacy and safety profile.
In other recent news, Gossamer Bio has made significant strides in its clinical trials and strategic partnerships. The company's collaboration with Chiesi Group for the development and co-commercialization of the drug seralutinib has been highlighted by H.C. Wainwright, who maintained a Buy rating on Gossamer Bio. The partnership is expected to expedite the development process of seralutinib, a treatment for pulmonary arterial hypertension (PAH).
Gossamer Bio also plans to present additional findings from the open-label extension Phase 2 trial of seralutinib at the upcoming European Respiratory Society Congress. Top-line data from the Phase 3 trial is anticipated in the fourth quarter of 2025.
Furthermore, Piper Sandler has maintained an Overweight rating for Gossamer Bio, noting the significance of seralutinib as the only remaining Phase 3 PAH drug candidate. A global alliance with Chiesi Farmaceutici for the development and commercialization of seralutinib includes a $160 million development reimbursement from Chiesi, with the potential for up to $146 million in regulatory milestones and $180 million in sales milestones.
InvestingPro Insights
As Piper Sandler maintains an optimistic view on Gossamer Bio Inc. (NASDAQ: GOSS), recent performance metrics and market data from InvestingPro provide a broader financial context for investors. With a market capitalization of approximately $201.36 million, Gossamer Bio is recognized for holding more cash than debt, a sign of financial stability that can be crucial for biotech firms facing lengthy and costly drug development cycles. This aligns with the Piper Sandler’s confidence in the company's financial risk profile.
InvestingPro data also indicates a notable 71.04% return over the last three months, suggesting a strong short-term performance that may interest momentum investors. However, it's important to note that analysts do not expect the company to be profitable this year, and the stock exhibits considerable volatility. For those considering an investment, these insights could be pivotal in shaping a well-rounded investment thesis. For a more comprehensive analysis, including additional InvestingPro Tips, visit https://www.investing.com/pro/GOSS.
It's also worth mentioning that Gossamer Bio does not pay a dividend, which may influence the investment decisions of income-focused shareholders. With seven analysts having revised their earnings upwards for the upcoming period, it seems that the market sentiment is gradually improving, potentially reflecting the same optimism shown by Piper Sandler regarding upcoming milestones.
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