New York, Feb 24, 2026, 05:42 EST — Premarket
- Early premarket signs put shares near $0.42, following Monday’s roughly 80% plunge.
- The Phase 3 PROSERA study didn’t hit its main endpoint as planned, so the company now has to reconsider its route with the FDA.
- Analysts slashed ratings and targets, citing concerns over both funding and the project’s timeline.
Gossamer Bio shares hovered near $0.42 in premarket trading Tuesday, following a brutal 80% plunge the previous day after its flagship lung-disease therapy fell short in a late-stage trial. With the stock off about $1.71 from its earlier close, traders weighed a harder path to U.S. approval, despite some isolated positives in the data. (Reuters)
This one lands hard: PROSERA was the catalyst investors had circled, and seralutinib is Gossamer’s central play. A Phase 3 miss for a one-drug biotech? Conversation shifts instantly from “launch math” to questions about just how much runway is left.
The PAH market isn’t exactly wide open, with physicians already choosing from several existing treatments. Regulators have leverage here, too. Merck’s Winrevair and Johnson & Johnson’s Tracleer count among the entrenched drugs in play. (Reuters)
Gossamer, in its filing, reported a 13.3-meter placebo-adjusted improvement in six-minute walk distance at Week 24—the primary endpoint for the PAH study. However, that result didn’t hit the prespecified alpha threshold for statistical significance. (sec.gov)
The company isn’t backing away just yet. Chief executive Faheem Hasnain said the data “clearly demonstrate” seralutinib’s activity, and management intends to meet with the U.S. Food and Drug Administration to map out next steps. Gossamer is also putting its SERANATA trial on hold for now as it digs into regional variations in placebo response. Extra imaging substudy data are expected in the coming weeks. (Business Wire)
Regulatory headaches got much of the attention from analysts. The main study failed, and even those subgroup hints don’t easily translate into an approved label—they’ll need more data. Guggenheim’s Vamil Divan told Reuters that getting the medicine cleared “even in those subgroups” might prove “complicated.”
The downgrades from Wall Street landed fast. Barclays’ Eliana Merle dropped Gossamer to underweight, chopping her price target down to $0.30 after the company missed its endpoint. She pointed to a delayed FDA timeline and mounting balance-sheet pressure, according to StreetInsider. (StreetInsider.com)
The FDA’s next move is the wild card here, and the company’s reaction will set the tone. Whether that means launching a fresh trial, tweaking the design, or tightening up the filing, each direction brings its own calendar and cash demands.
But things could break the other way—if closer scrutiny pokes holes in the subgroup data, or regulators call for more proof, the picture shifts fast. In that case, talk turns to restructuring, dilution, or asset sales instead of betting on a filing anytime soon.
In the coming week, traders are set to look for updates on the timing of the FDA meeting, clarity on whether the halted study remains paused, and what management says about financing as they address the fallout from the PROSERA miss.
The next earnings report lands March 12, offering investors fresh details on cash, spending, and any shifts in development focus. (MarketBeat)
