Gossamer Bio downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs downgraded Gossamer Bio (GOSS) to Neutral from Buy with a price target of 50c, down from $8. The firm notes the company’s Phase 3 PROSERA topline results, which demonstrated a 13.3m placebo-adjusted improvement in 6-minute walk distance, was below its base case expectations of 16m-25m. Regarding next steps, Gossamer views the evidence from the PROSERA and TORREY studies as compelling in aggregate and plans to meet with regulators to discuss the data, though Goldman see the regulatory path for seralutinib as “uncertain but with a subset of the high risk patients” potentially having the best prospects.