Gossamer Bio Reports Q1 2024 Financials and Business Update

Gossamer Bio, Inc. (Nasdaq: GOSS), a clinical-stage biopharmaceutical company, has reported its financial results for the first quarter ending March 31, 2024, and provided significant business updates. The company focuses on developing and commercializing seralutinib, an inhaled treatment for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).

Faheem Hasnain, Co-Founder, CEO, and Chairman of Gossamer Bio, emphasized the company's ongoing commitment to improving the lives of patients with pulmonary hypertension. This commitment is highlighted by the recently announced transformative development and co-commercialization collaboration with Chiesi, which has brought an immediate $160 million cash infusion to Gossamer's balance sheet. This partnership is designed to expedite the progress of seralutinib into a registrational Phase 3 trial for PH-ILD, scheduled to begin mid-next year.

The current status of seralutinib includes enrollment in the PROSERA Study, a global Phase 3 clinical trial for patients with WHO Functional Class II and III PAH. The primary measure of this study is the change in six-minute walk distance (6MWD) from baseline at week 24, with results expected in the fourth quarter of 2025. The collaboration between Gossamer and Chiesi involves sharing global development costs for seralutinib, with Gossamer solely responsible for the PROSERA Study. In the US, both companies will share profits and losses, with Gossamer leading commercialization efforts in PAH and PH-ILD, and Chiesi focusing on additional indications. Outside the US, Chiesi will handle commercialization, with Gossamer receiving royalties.

Financially, Gossamer reported that, as of March 31, 2024, its cash, cash equivalents, and marketable securities amounted to $244.4 million. Including the $160 million reimbursement payment from Chiesi and the repayment of MidCap debt, the total was $396 million. This financial position is expected to fund the company's operating and capital expenses into the first half of 2027.

Research and Development (R&D) expenses for the quarter were $32.4 million, down from $37.8 million in the same period the previous year. This decrease was primarily due to reduced costs associated with preclinical studies and clinical trials for previously terminated programs, partially offset by increased expenses for seralutinib. General and Administrative (G&A) expenses were $9.6 million, slightly down from $10.1 million the previous year. The net loss for the quarter was $41.9 million, or $0.19 per share, compared to a net loss of $49.2 million, or $0.52 per share, in the same period of 2023.

Key developments also include the publication of the TORREY Phase 2 PAH results in Lancet Respiratory Medicine. The study evaluated the effects of seralutinib in PAH patients on top of the standard of care and highlighted significant advancements in PAH treatment. Additionally, updated data from the ongoing TORREY Open Label Extension Study will be presented at the American Thoracic Society (ATS) 2024 International Conference in San Diego. This presentation will cover interim results from the Phase 1B and Phase 2 TORREY Open-label Extension Study of seralutinib in PAH.

In corporate developments, Gossamer has fully settled its obligations under the MidCap Credit Agreement, leading to the release of the lenders' security interests in the company's assets.

In summary, Gossamer Bio's strategic collaboration with Chiesi, robust financial health, and ongoing clinical trials position the company for significant progress in the development and commercialization of seralutinib for pulmonary hypertension.