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Gossamer Bio Inc (GOSS)
NASDAQ:GOSS
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Gossamer Bio
(NASDAQ:GOSS)
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Rating:35Underperform
Price Target:―
The overall stock score for Gossamer Bio is low, primarily due to significant financial challenges, including high leverage and consistent losses. While there is some improvement in revenue and cash flow, the company remains unprofitable. Technical analysis suggests market uncertainty, and valuation metrics show limited attractiveness due to a negative P/E ratio and no dividend yield.
Positive Factors
Revenue Growth
The significant revenue increase in 2024 indicates potential market acceptance and progress in monetizing its drug pipeline, essential for long-term growth.
Free Cash Flow Improvement
Improvement in free cash flow suggests efforts to stabilize finances, which is crucial for funding R&D and reducing reliance on external financing.
Positive Equity
Achieving positive equity in 2024 marks a step towards financial stability, enhancing the company's ability to attract investment and support growth.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, posing challenges to sustaining operations and funding future growth without additional capital.
Consistent Losses
Ongoing unprofitability highlights challenges in achieving sustainable operations, impacting long-term viability and investor confidence.
Negative Operating Cash Flow
Consistently negative operating cash flow indicates poor cash generation, which can hinder the company's ability to invest in R&D and expand its pipeline.
Gossamer Bio (GOSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$773.06M
Dividend YieldN/A
Average Volume (3M)2.94M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-58.17%
EPS Growth-116.24%
CountryUS
Employees144
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.21
Shares Outstanding231,456,250
10 Day Avg. Volume2,987,085
30 Day Avg. Volume2,940,602
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)6.94
Price to Sales (P/S)1.78
P/FCF Ratio-59.01
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue14.13
Enterprise Value/Gross Profit14.13
Enterprise Value/Ebitda-4.26
Forecast
1Y Price Target
$10.80Price Target Upside223.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.7
Revenue Forecast (FY)$44.43M
Gossamer Bio Business Overview & Revenue Model
Company DescriptionGossamer Bio, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology in the United States. The company is developing GB002, an inhaled, small molecule, platelet-derived growth factor receptor, or PDGFR, colonystimulating factor 1 receptor, or CSF1R, and c-KIT inhibitor for the treatment of pulmonary arterial hypertension; GB004, a gut-targeted, oral small molecule for the treatment of inflammatory bowel disease; GB5121, an oral, irreversible, covalent, small molecule inhibitor of Bruton's Tyrosine Kinase for the treatment of primary central nervous system lymphoma; and GB7208, an oral, small molecule, BTK inhibitor for the treatment of multiple sclerosis. It has license agreements with Pulmokine, Inc. to develop and commercialize GB002 and related backup compounds; and Aerpio Pharmaceuticals, Inc. to develop and commercialize GB004 and related compounds. The company was formerly known as FSG, Bio, Inc. and changed its name to Gossamer Bio, Inc. in 2017. Gossamer Bio, Inc. was incorporated in 2015 and is headquartered in San Diego, California.
How the Company Makes MoneyGossamer Bio makes money primarily through the development and eventual commercialization of its proprietary therapeutic candidates. The company's revenue model is heavily reliant on the successful progression of its drug candidates through clinical trials, followed by regulatory approval and market entry. Key revenue streams include potential milestone payments, licensing agreements, and royalties from partnerships with larger pharmaceutical companies. Additionally, Gossamer Bio may generate income through strategic collaborations that provide funding for research and development activities, as well as potential future sales of approved drugs. The company's earnings are significantly influenced by the successful navigation of the regulatory landscape and the potential market demand for its therapies upon approval.
Gossamer Bio Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Mar 13, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in Gossamer Bio's clinical trials, particularly with the completion of enrollment for the PROSERA study and strategic partnerships. However, there are challenges with delayed timelines and stringent enrollment criteria resulting in a high screening failure rate, alongside financial losses.Q1-2025 Updates
Positive Updates
Successful Enrollment in PROSERA Study
Gossamer Bio announced the completion of patient enrollment for the Phase III PROSERA study focused on Seralutinib for PAH, with a total of 343 patients enrolled.
Strategic Global Partnerships
Gossamer Bio highlighted its collaboration with the Chiesi Group, which has enabled Seralutinib to enter a global registrational Phase III study in PH-ILD.
Strong Financial Position
Gossamer ended the quarter with $257.9 million in cash and cash equivalents, providing sufficient capital for operations until the first half of 2027.
Positive Feedback and Interest from Physicians
The open-label extension data from the TORREY study has increased interest and demand for participation in the PROSERA study.
Clear Regulatory Pathway
Discussions with FDA and EMA have confirmed the design and endpoints of the PROSERA study, aligning with regulatory expectations.
Negative Updates
Delayed Data Readout for PROSERA Study
The announcement of top-line results for the PROSERA study has been pushed to February 2026 due to extended enrollment and data cleaning processes.
High Screening Failure Rate
Out of approximately 750 patients screened for the PROSERA study, only 343 were enrolled, indicating a stringent and challenging enrollment process.
Limited Use of Sotatercept in Study
Very few patients in the PROSERA study were on stable background sotatercept, suggesting potential challenges in integrating this treatment.
Financial Losses
Gossamer reported a net loss of $36.6 million for the three months ended March 31, 2025.
Company Guidance
During the Gossamer Bio Q1 2025 earnings call, the company provided a detailed update on their investigational treatment Seralutinib, particularly focusing on the Phase III PROSERA study for pulmonary arterial hypertension (PAH). The call highlighted the completion of patient screenings, with 343 patients enrolled and targeted to complete enrollment by mid-June. The study is powered to detect a 30-meter improvement in the six-minute walk distance at 24 weeks, with anticipated top-line results in February 2026. The baseline characteristics of enrolled patients, including an average six-minute walk distance of 376 meters and a mean NT-proBNP level of 96 ng/L, indicate a sicker population compared to prior studies. Additionally, 74% of patients are classified as functional Class III at baseline. Financially, the company reported $257.9 million in cash and equivalents, with a net loss of $36.6 million for the quarter. The discussion also covered the upcoming Phase III SERANATA study for pulmonary hypertension associated with interstitial lung disease (PH-ILD), which plans to enroll approximately 480 patients globally, aiming to demonstrate improvements in six-minute walk distance and forced vital capacity.Gossamer Bio Financial Statement Overview
Summary
Gossamer Bio faces significant financial challenges, with high leverage and consistent losses. The recent revenue growth is a positive sign, but profitability and cash flow need substantial improvement to enhance financial health and stability.Income Statement
Gossamer Bio showed a significant revenue increase in 2024, but the company remains unprofitable with negative net income, EBIT, and EBITDA margins. The gross profit margin is nonexistent in prior years due to no revenue, indicating historical financial struggles.20
Very Negative
Balance Sheet
The company has a very high debt-to-equity ratio and negative equity in previous years, suggesting high financial leverage and risk. While equity became positive in 2024, it remains minimal compared to total liabilities, indicating ongoing financial instability.15
Very Negative
Cash Flow
Operating cash flow is consistently negative, reflecting poor cash generation relative to net income. However, the significant improvement in free cash flow in 2024 suggests efforts to stabilize cash flow, although it remains negative.25
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 44.05M | 114.70M | 0.00 | 0.00 | 0.00 | 0.00 |
| Gross Profit | 44.05M | 114.70M | 0.00 | 0.00 | 0.00 | -4.27M |
| EBITDA | -145.96M | -39.97M | -161.92M | -211.07M | -209.40M | -226.43M |
| Net Income | -156.16M | -56.53M | -179.82M | -229.38M | -234.00M | -243.36M |
Balance Sheet | ||||||
| Total Assets | 208.82M | 315.29M | 311.92M | 272.45M | 343.66M | 539.43M |
| Cash, Cash Equivalents and Short-Term Investments | 180.22M | 294.52M | 296.43M | 255.68M | 325.22M | 512.63M |
| Total Debt | 202.88M | 202.88M | 212.46M | 225.74M | 185.24M | 183.73M |
| Total Liabilities | 291.15M | 285.80M | 249.15M | 260.37M | 222.19M | 218.75M |
| Stockholders Equity | -82.33M | 29.49M | 62.77M | 12.08M | 121.46M | 320.68M |
Cash Flow | ||||||
| Free Cash Flow | -158.51M | -3.47M | -159.16M | -187.51M | -190.51M | -201.24M |
| Operating Cash Flow | -158.43M | -3.47M | -159.16M | -187.03M | -188.89M | -176.36M |
| Investing Cash Flow | 136.42M | 29.02M | -110.97M | -1.03M | -117.43M | 215.34M |
| Financing Cash Flow | 2.47M | -11.49M | 190.15M | 117.09M | 3.33M | 312.54M |
Gossamer Bio Technical Analysis
Positive
3.34
Price Trends
2.62
Positive
2.39
Positive
1.78
Positive
Market Momentum
0.22
Negative
71.35
Negative
92.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOSS, the sentiment is Positive. The current price of 3.34 is above the 20-day moving average (MA) of 2.74, above the 50-day MA of 2.62, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 92.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOSS.
Gossamer Bio Risk Analysis
Gossamer Bio disclosed 77 risk factors in its most recent earnings report. Gossamer Bio reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gossamer Bio Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $715.02M | 10.09 | 66.76% | ― | -10.26% | 144.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | ― | ― | ― | ― | -100.00% | -61.86% | |
46 Neutral | $1.09B | ― | -78.74% | ― | ― | -22.39% | |
38 Underperform | $1.52B | ― | -24.43% | ― | ― | ― | |
35 Underperform | $773.06M | ― | ― | ― | -58.17% | -116.24% | |
35 Underperform | ― | ― | ― | ― | ― | 3.01% |
* Healthcare Sector Average
GOSS
Gossamer Bio
3.34
2.61
357.53%
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4.22
3.13
287.16%
SVRA
Savara
5.36
2.06
62.42%
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10.15
1.60
18.71%
VIGL
Vigil Neuroscience Inc
8.05
5.65
235.42%
MBX
MBX Biosciences, Inc.
33.82
14.82
78.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.