Gossamer Bio Reports Q2 2024 Financial Results and Business Update

Gossamer Bio, Inc., a clinical-stage biopharmaceutical company listed on Nasdaq under the ticker symbol GOSS, focuses on developing and commercializing seralutinib for treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The company recently released its financial results for the second quarter ending June 30, 2024, and provided an update on its business activities.

Faheem Hasnain, Co-Founder, CEO, and Chairman of Gossamer Bio, highlighted the significant progress in the enrollment for the Phase 3 PROSERA Study and the collaboration with the Chiesi Group. These advancements are expected to enhance the clinical development and market potential of seralutinib. Hasnain also noted the upcoming presentations and posters at major medical meetings, which will further support the potential of seralutinib as a novel treatment for PAH and PH-ILD patients.

Seralutinib, also known as GB002, is an inhaled inhibitor targeting PDGFR, CSF1R, and c-KIT for treating PAH and PH-ILD. The ongoing PROSERA Study is a global Phase 3 clinical trial involving patients with WHO Functional Class II and III PAH, with the primary endpoint being the change in six-minute walk distance (6MWD) from baseline at week 24. The trial aims to release its topline results in the fourth quarter of 2025. Gossamer Bio expects to start a global registrational Phase 3 clinical trial for PH-ILD patients in mid-2025, following discussions with global regulatory authorities.

On May 6, 2024, Gossamer Bio and the Chiesi Group announced a collaborative agreement for the development and co-commercialization of seralutinib. This partnership involves splitting global development costs, except for the PROSERA Study, which Gossamer will solely manage. In the United States, both companies will share profits and losses, whereas Chiesi will handle seralutinib's commercialization outside the U.S., with Gossamer receiving royalties ranging from mid-to-high teens.

Financially, Gossamer Bio reported cash, cash equivalents, and marketable securities totaling $354.5 million as of June 30, 2024. This financial reserve is projected to support the company's operating and capital expenditures until the first half of 2027. For the second quarter ending June 30, 2024, Gossamer Bio reported revenue from license sales at $88.8 million and revenue from contracts with collaborators at $7.1 million. The revenue predominantly includes a one-time development cost reimbursement and ongoing research and development service payments related to the collaboration with Chiesi.

Research and Development (R&D) expenses for the quarter were $35.1 million, a slight decrease from $36.3 million in the same period in 2023. General and Administrative (G&A) expenses also saw a reduction, amounting to $8.7 million compared to $10.0 million for the same quarter in 2023. Gossamer Bio reported a net income of $49.2 million for the quarter, translating to $0.22 basic net income per share, a significant turnaround from a net loss of $42.5 million, or $0.45 basic net loss per share, in the same period last year.

Gossamer Bio continues to focus on developing seralutinib, aiming to become a leader in treating pulmonary hypertension and improving the lives of patients with this condition.