Barclays reduced its rating on Gossamer Bio Inc. to Underweight from Overweight and cut the price objective to $0.30 from $9.00 after release of Phase 3 data over the weekend. The stock has fallen roughly 80% in the past week to about $0.42 a share, valuing the company at approximately $98 million.
The PROSERA study in pulmonary arterial hypertension - the trial intended to test seralutinib - failed to meet its primary endpoint, according to data reported on February 23. The study enrolled 390 patients and produced a placebo-adjusted improvement in Six-Minute Walk Distance of 13.3 meters, which did not reach the threshold for statistical significance.
Beyond the clinical readout, the company faces material near-term financing considerations. Gossamer Bio carries about $200 million in convertible notes that mature in June 2027, and it expects to hold roughly $105 million in cash at the end of the first quarter. Barclays and other analysts highlighted the combination of an uncertain regulatory path and this debt burden as drivers of near-term stock pressure.
Operational and liquidity metrics cited alongside these figures produced mixed signals. An InvestingPro tip in the company profile notes that management is "quickly burning through cash," while the firms current ratio stood at 3.28, indicating that liquid assets still exceed short-term obligations. InvestingPros Financial Health Score rates GOSS as "WEAK" at 1.52 out of 5, and the profile lists 15 additional ProTips for subscribers.
On regulatory timing, Barclays projects an approval decision could be roughly 18 months away. The research team said visibility on FDA approvability is limited after a missed primary endpoint and given the existing array of approved therapies for pulmonary arterial hypertension already on the market. Company management expects to hold an FDA meeting in June, while Barclays expects that any definitive approval decision would likely not occur until the second half of 2027.
Barclays noted that FDA approval of seralutinib would represent a material upside to its estimates, but it cautioned that the next 12 months are likely to be challenging for the stock because of the debt coming due and the absence of clear, near-term evidence of approvability. The firm emphasized that until there is definitive regulatory clarity, the company's balance sheet position will remain a central focus for investors.
Analyst reaction to the PROSERA results has been varied. Following the trial announcement, Leerink Partners downgraded Gossamer Bio to Market Perform from Outperform and cut its price target to $1.00. Cantor Fitzgerald had maintained an Overweight rating on the stock prior to the public release of the trial data. Separately, H.C. Wainwright reiterated a Buy rating with a $10.00 price target after meeting with Gossamer Bio management.
The combination of an unsuccessful Phase 3 primary endpoint, a concentrated set of competing therapies in PAH and a sizable convertible debt maturity create a period of heightened uncertainty for the company. Investors seeking additional, in-depth analysis can consult the firms Pro Research Report on GOSS, which covers detailed financial and strategic considerations for subscribers.
Contextual note: The material above focuses on the trial outcome, analyst reactions and the companys financial position as presented in disclosed reports and analyst notes. It does not add or infer outcomes beyond the information provided by those sources.