Buy Rating Affirmed for Gossamer Bio Amidst Strategic Collaboration and Market Opportunity Growth

Gossamer Bio (GOSS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Patrick Trucchio from H.C. Wainwright reiterated a Buy rating on the stock and has a $10.00 price target.

Patrick Trucchio has given his Buy rating due to a combination of factors related to Gossamer Bio’s strategic moves and potential market opportunities. The recent collaboration with Chiesi Farmaceutici is a particularly significant development, as it is expected to drive the advancement of seralutinib—a promising inhaled tyrosine kinase inhibitor currently in late-stage development for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). Trucchio’s confidence is bolstered by the initiation of a Phase 3 registrational study, the global commercialization plans for seralutinib if approved, and the anticipation of positive clinical data to be presented at an upcoming conference.

The agreement with Chiesi is seen as a major step that should expedite the development of seralutinib. This collaboration not only supports the drug’s progress in clinical trials but also enhances its commercial prospects, with a potential increase in peak revenues to over $7 billion, driven by an expanded indication to PH-ILD—a larger market with a greater need for effective treatments. The financial terms of the agreement, including substantial upfront payments and milestone-based payments, along with an equitable split of development costs and commercial profits, make this a favorable deal for Gossamer Bio. These strategic elements, combined with the drug’s targeting of key biological pathways involved in both PAH and PH-ILD, form the basis for Trucchio’s positive rating and $10 price target on Gossamer Bio’s stock.

In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $4.00 price target.

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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.