Gossamer Bio to acquire Respira Therapeutics in all-stock transaction

Gossamer Bio (GOSS) announced it has entered into an option agreement to acquire Respira Therapeutics and its lead product candidate, RT234, an investigational inhaled vardenafil dry-powder therapy designed for as needed use in pulmonary hypertension, including PAH and PH-ILD. Pursuant to the option agreement, Gossamer will issue 2.5M shares in connection with signing, equating to about 1% of Gossamer’s common shares outstanding, with an additional 1.5M shares due upon exercise of the option. Additionally, current and former shareholders of Respira will be eligible for certain success-based clinical, regulatory, and commercial milestone payments and a high single-digit royalty on potential net sales of RT234. During the option period, Gossamer will fund certain pre-agreed development expenses for up to approximately two years, focused on CMC and device readiness. This structure is designed to minimize near-term cash burn and preserve Gossamer’s financial position, while allowing for the continued preparation of RT234 for subsequent clinical development by advancing foundational CMC and device work during the option period.