Wedbush downgrades Gossamer Bio to Neutral, lowers target to $1

As previously reported, Wedbush downgraded Gossamer Bio (GOSS) to Neutral from Outperform with a price target of $1, down from $6. The firm notes that the PROSERA study results came in below expectations, and while additional data from the FRI study may still emerge, the central question is whether a registrational path for seralutinib can be established. Wedbush continues to assume the answer is yes. However, the firm is pushing its expected launch to fiscal year 2028 and narrowing the addressable market to higher-risk pulmonary arterial hypertension patients who are already on three or more therapies. Beyond the regulatory uncertainty, Gossamer must also restructure its existing convertible debt. Wedbush models this occurring in 2026 and factors in additional financings needed to reach commercialization.