Gossamer Bio Inc. (NASDAQ:GOSS) received an upgrade from UBS on Wednesday, with analyst Eliana Merle raising the stock rating from Neutral to Buy and increasing the price target to $9.00 from $1.25.
The upgrade comes ahead of Gossamer’s Phase 3 pulmonary arterial hypertension (PAH) trial data expected in February, with UBS citing "underappreciated probability of success" for the company’s seralutinib treatment.
UBS highlighted several factors supporting potential trial success, including Phase 2 data showing seralutinib’s activity in PAH, a strong mechanistic rationale based on Gleevec data, and improved safety from inhaled delivery compared to systemic administration.
The research firm noted trial design advantages, including enrichment for sicker patient populations that showed greater benefit in Phase 2 (approximately 37m benefit versus 7m overall), conservative statistical powering, and inclusion of more ex-US patients.
UBS sees favorable risk-reward potential, with possible upside of 100-200% on success versus approximately 90% downside on failure, noting Gossamer’s $630 million market cap compared to the current PAH market size of approximately $7-8 billion.
In other recent news, H.C. Wainwright has reiterated its Buy rating on Gossamer Bio, maintaining a price target of $10. This decision comes as the firm anticipates key clinical data for seralutinib, Gossamer Bio’s investigational treatment for pulmonary arterial hypertension, expected in early 2026. The analysis by H.C. Wainwright follows a literature review that reinforced a positive outlook on the potential of seralutinib.
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