Oppenheimer initiated coverage on Gossamer Bio Inc (NASDAQ:GOSS), a clinical-stage biopharmaceutical company, with an Outperform rating and a price target of $9.
Gossamer Bio is focused on developing and commercializing seralutinib for pulmonary arterial hypertension. It stands out with its clean long-term safety profile, Oppenheimer said.
Competitors like Merck & Co Inc’s (NYSE:MRK) Winrevair require frequent monitoring for hemoglobin increases, thrombocytopenia, and gastrointestinal bleeding. It may require dose reductions or drug holidays.
In May, Gossamer Bio and Italy-based Chiesi Farmaceutici S.p.A entered a global collaboration and license agreement to develop and commercialize seralutinib.
Following the readout of the Phase 2 TORREY Study in patients with PAH, Gossamer initiated the Phase 3 PROSERA Study in 2023.
Gossamer and Chiesi plan to initiate a global Phase 3 registrational study in pulmonary hypertension associated with interstitial lung disease (PH-ILD) in mid-2025 and to evaluate seralutinib in additional indications.
Oppenheimer says including Japanese trial sites could help seralutinib gain approval in Japan, the world’s second-largest PAH market, and attract potential partnerships. Additionally, delays for WInrevair in Europe underscore the importance of opportunities outside the U.S.
Seralutinib’s safety and efficacy profile are “a preferred choice among severe PAH patients who are not adequately served by currently available therapies (~65% take 2-3 drugs),” analysts noted.
The analyst adds that Gossamer has strategically positioned seralutinib to enter large, underserved markets such as Japan. “We see shares trading below cash as creating an attractive entry point at current levels.”
With pro forma cash of $396 million providing sufficient runway into the second quarter of 2026 and shares currently trading below cash, this can be seen as an attractive entry for long-term investors.
Price Action: GOSS shares are up 21.1% at $1.00 at last check Tuesday.
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