Analyst Expects 'Somewhat Smaller Effect Size' From Gossamer Bio's Upcoming PAH Trial

• Raymond James maintains Outperform on Gossamer Bio Inc (NASDAQ: GOSS) with a price target down from $18 to $15.

• The analyst expects a somewhat smaller effect size for seralutinib vs. sotatercept's.

• Seralutinib Phase 2 TORREY study is on track for topline readout in the second half of November or the first half of December.

• Merck & Co Inc (NYSE: MRK) is developing sotatercept as an add-on to stable background therapy for pulmonary arterial hypertension (PAH).

• Merck recently reported topline data from a pivotal Phase 3 STELLAR trial exhibiting primary win on a 6-minute walk distance over 24 weeks is statistically significant and clinically meaningful.

• The analyst's investment thesis is based on the fact that seralutinib has a similar mechanism of action to imatinib's that worked in the Phase 3 IMPRES study, and this thesis still holds.

• Raymond James writes that if the Phase 2 PAH study of seralutinib is successful, most of Gossamer's resources will be focused on the Phase 3 program for this asset.

• Otherwise, the focus will shift to earlier assets in BTK inhibitors, and Gossamer is not planning to license new IBD assets at this time.

• In April, Gossamer Bio announced topline results from its Phase 2 SHIFT-UC Study trial of GB004 in patients with mild-to-moderate active ulcerative colitis (UC).

• Neither GB004 treatment arm met the primary or secondary endpoints at week 12.

• Price Action: GOSS shares are down 1.08% at $9.13 on the last check Thursday.

Latest Ratings for GOSS

Date	Firm	Action	From	To
Nov 2021	SVB Leerink	Maintains		Outperform
Aug 2021	SVB Leerink	Maintains		Outperform
Mar 2021	HC Wainwright & Co.	Reiterates		Buy

View More Analyst Ratings for GOSS

View the Latest Analyst Ratings

See more from Benzinga

• Theratechnologies Is An Underappreciated HIV-Focused Company, Analyst Says

• This Rare Disease Focused Stock Pipeline Is Underappreciated, Analyst Initiating Coverage Says

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.