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

Raymond James maintains Outperform on Gossamer Bio Inc 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 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.

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