In a report released on May 6, Joseph Schwartz from Leerink Partners reiterated a Buy rating on Gossamer Bio (GOSS – Research Report), with a price target of $6.00.
Joseph Schwartz has given his Buy rating due to a combination of factors surrounding Gossamer Bio’s strategic partnership and financial positioning. The collaboration with Chiesi Farmaceutical is seen as a significant positive move, addressing prevalent investor concerns and expediting Gossamer Bio’s initiatives in pulmonary hypertension associated with interstitial lung disease (PH-ILD). Schwartz’s confidence is bolstered by the thorough due diligence Chiesi conducted, which suggests a strong foundation for their partnership and an endorsement of the potential of Gossamer Bio’s product, Seralutinib.
Additionally, the partnership offers financial benefits, including a $160 million development reimbursement that extends Gossamer Bio’s cash runway. The cost-sharing plan with Chiesi alleviates Gossamer Bio’s cash burn and leverages Chiesi’s established relationship with the European Medicines Agency (EMA). This collaboration ensures Gossamer Bio’s leadership in the development and U.S. commercialization for PAH and PH-ILD while sharing the regulatory and financial load. With a solid cash position at the end of the fourth quarter and a projected financial runway into the first half of 2026, Schwartz’s outlook is further supported, prompting him to raise the price target from $3 to $6.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $4.00 price target.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GOSS in relation to earlier this year.
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Gossamer Bio (GOSS) Company Description:
Gossamer Bio, Inc. engages in discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology. Its primary product candidate is GB001, which is intended for the treatment of moderate-to-severe eosinophilic asthma and other allergic conditions. The company was founded by Faheem Hasnain and Sheila Gujrathi in 2015 and is headquartered in San Diego, CA.
Read More on GOSS:
- Goldman says Gossamer’s new deal validates attractive opportunity for seraltunib
- Gossamer Bio partnership with Chiesi a positive, says Guggenheim
- Gossamer collaboration should accelerate development, says H.C. Wainwright
- Gossamer Bio seralutinib partnership a clear win, says Cantor Fitzgerald
- Piper sees Gossamer Bio partnership as major win for seralutinib in PAH, PH-ILD
