On Monday, Piper Sandler sustained its Overweight rating and $15.00 price target for Gossamer Bio Inc . (NASDAQ:GOSS) shares. The firm's positive stance comes in the wake of a recent investor luncheon with the company's management in New York City.
The discussion at the event revolved around the Phase 3 PROSERA study for Gossamer's drug seralutinib, which is being developed for pulmonary arterial hypertension (PAH).
The interest in Gossamer Bio's seralutinib has significantly increased following the failure of a competing drug, AV-101, from another company 27 days ago. The failure of AV-101 has resulted in heightened patient interest and enrollment in the PROSERA study.
Piper Sandler emphasized the importance of seralutinib being the only remaining Phase 3 PAH drug candidate and anticipates that the completion of enrollment for the PROSERA trial, expected in the first quarter of 2025, will be a significant event for the company's stock.
Furthermore, the partnership with Chiesi was highlighted as a strategic move for Gossamer Bio, contributing to the company's value growth. The firm underscored that this partnership does not preclude potential mergers and acquisitions in the future.
Additionally, the discussion touched upon the potential expansion of seralutinib into treating pulmonary hypertension in patients with interstitial lung disease (PH-ILD), with a Phase 3 trial anticipated to begin in mid-2025, and into idiopathic pulmonary fibrosis (IPF), signaling a strategic development of indications.
In conclusion, Piper Sandler remains bullish on Gossamer Bio, noting that the company's current valuation is trading at approximately 70% of its cash value, which is below that of other micro and small-cap companies. Gossamer Bio continues to be a top pick for the firm, based on the outlined developments and prospects.
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