Gossamer Bio (GOSS) AI Stock Analysis

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Gossamer Bio

(NASDAQ:GOSS)

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

Financial Stability

GOSS ended the year with $294.5M in cash, cash equivalents, and marketable securities, expected to fund operations into 1H27.

Treatment Potential

Gossamer continues to advance a best-in-class inhaled kinase inhibitor with first- and best-in-class potential in two high-value indications.

Unmet Needs

The SERANATA program aims to establish seralutinib as the first disease-modifying therapy in PH-ILD, addressing a high unmet need opportunity.

Negative Factors

Investor Sentiment

Investor sentiment on GOSS has greatly contracted following Phase 2 TORREY data, making some wonder if the company can pull off a win.

Phase 2 Data

The topline Ph.2 TORREY study data disappointed, although there were encouraging signals in severe patients.

Study Delays

Topline data for the PROSERA study is now expected in February 2026, causing a delay that may disappoint investors.

Gossamer Bio (GOSS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$288.67M

Dividend YieldN/A

Average Volume (3M)1.44M

Price to Earnings (P/E)―

Beta (1Y)1.96

Revenue GrowthN/A

EPS Growth81.94%

CountryUS

Employees144

SectorHealthcare

Sector Strength58

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.16

Shares Outstanding227,302,140

10 Day Avg. Volume1,286,596

30 Day Avg. Volume1,435,303

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)-0.18

Price to Sales (P/S)0.00

P/FCF Ratio-0.98

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue0.65

Enterprise Value/Gross Profit2.39

Enterprise Value/Ebitda-1.58

Forecast

1Y Price Target

$8.75

Price Target Upside605.65% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Gossamer Bio Business Overview & Revenue Model

Company DescriptionGossamer Bio (GOSS) is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing, and commercializing therapeutics in the areas of immunology, inflammation, and oncology. The company operates primarily in the biotechnology sector and is dedicated to advancing its pipeline of drug candidates designed to address unmet medical needs. Gossamer Bio's core products and services revolve around its innovative research and development efforts, aimed at creating effective treatments for serious diseases.

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: 18.10%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call presents a balanced view with significant achievements in study enrollment and strategic partnerships, but it is tempered by financial challenges and delays in study results. The financial position is strong, yet there is an increased R&D expense and a net loss. The sentiment is mixed, reflecting both optimism about Seralutinib's potential and concerns about financial and operational timelines.

Q1-2025 Updates

Positive Updates

PROSERA Study Enrollment Success

Gossamer Bio achieved a significant milestone by nearing the completion of enrollment for the PROSERA study with 343 patients. The baseline characteristics of the patients are exactly as targeted, enhancing the likelihood of success.

Strong Financial Position

Gossamer Bio ended the quarter with $257.9 million in cash and cash equivalents, providing sufficient capital until the first half of 2027.

Potential Global Expansion

Seralutinib's potential for regulatory approval in Japan is supported by its orphan drug designation and participation of Japanese patients in the PROSERA study.

Strategic Partnership with Chiesi Group

The collaboration with Chiesi Group enables Seralutinib to immediately enter a global registrational Phase III study for PH-ILD, with a shared cost basis of 50-50.

Negative Updates

Delayed Data Release for PROSERA

The top line results of the PROSERA study are now anticipated in February 2026, due to the decision to honor commitments to patients currently in screening.

Increased R&D Expenses

R&D expenses for Q1 2025 were $38 million, compared to $32.4 million for the same period in 2024, indicating increased spending on research and development.

Net Loss for the Quarter

Gossamer Bio reported a net loss of $36.6 million, or $0.16 per share, for the quarter ended March 31, 2025.

Company Guidance

During the Gossamer Bio Q1 2025 earnings call, significant guidance was provided on the progress of Seralutinib, particularly in the Phase III PROSERA study for pulmonary arterial hypertension (PAH). The company achieved a milestone by closing new patient screenings with 343 patients enrolled or scheduled to randomize, while targeting a demonstration of a significant treatment effect in the six-minute walk distance at 24 weeks. The study aims to complete by the fourth quarter, with top-line results expected in February 2026. The baseline characteristics of the enrolled patients, including a mean six-minute walk distance of 376 meters and an NT-proBNP level of 96 ng/L, align with targeted criteria to optimize treatment success. Additionally, 74% of enrolled patients are categorized as functional Class III, indicating a sicker population likely to show a more dramatic improvement. The company emphasized Seralutinib's potential for first-in-class treatment, leveraging its unique mechanism and promising safety profile to position it as a backbone therapy in PAH. Financially, Gossamer ended Q1 with $257.9 million in cash, projecting sufficient funds until the first half of 2027.

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

Very Negative

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.

Balance Sheet

Very Negative

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.

Cash Flow

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
124.59M	114.70M	0.00	0.00	0.00	0.00
	Gross Profit
124.59M	114.70M	-4.38M	-4.43M	-5.17M	-4.27M
	EBIT
-54.77M	-59.92M	-183.76M	-218.59M	-216.12M	-233.96M
	EBITDA
-35.70M	-39.97M	-172.15M	-211.07M	-209.32M	-233.96M
	Net Income Common Stockholders
-51.24M	-56.53M	-179.82M	-240.23M	-249.08M	-251.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
257.93M	294.52M	296.43M	255.68M	325.22M	512.63M
	Total Assets
280.59M	315.29M	311.92M	272.45M	343.66M	539.43M
	Total Debt
201.93M	202.88M	212.46M	225.74M	185.24M	183.73M
	Net Debt
172.91M	156.81M	180.35M	113.77M	1.83M	-302.32M
	Total Liabilities
286.84M	285.80M	249.15M	260.37M	222.19M	218.75M
	Stockholders Equity
-6.25M	29.49M	62.77M	12.08M	-811.53M	-577.53M
Cash Flow		Free Cash Flow
-107.26M	-3.47M	-159.16M	-187.51M	-190.51M	-201.24M
	Operating Cash Flow
9.11M	-3.47M	-159.16M	-187.03M	-188.89M	-176.36M
	Investing Cash Flow
-10.59M	29.02M	-110.97M	-1.03M	-117.43M	215.34M
	Financing Cash Flow
-8.43M	-11.49M	190.15M	117.09M	3.33M	312.54M

Gossamer Bio Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.24

Price Trends

50DMA

1.05

Positive

100DMA

1.12

Positive

200DMA

1.00

Positive

Market Momentum

MACD

0.06

Negative

RSI

55.57

Neutral

STOCH

55.35

Neutral

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 1.24 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.05, and above the 200-day MA of 1.00, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 55.35 is Neutral, 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 78 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

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$333.26M	―	-41.31%	―	―	-7.93%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
IMMP	50 Neutral	$241.99M	―	-31.16%	―	―	15.14%
AVIR	47 Neutral	$274.71M	―	-30.47%	―	―	-22.66%
TERN	45 Neutral	$343.24M	―	-32.12%	―	―	10.98%
ANNX	38 Underperform	$297.33M	―	-66.13%	―	―	43.21%
GOSS	35 Underperform	$288.67M	―	-500.57%	―	―	81.94%

* Healthcare Sector Average

Performance Comparison

GOSS

Gossamer Bio

1.24

0.72

138.46%

IMMP

Immutep

1.74

-0.95

-35.32%

ANNX

Annexon Biosciences

2.49

-2.87

-53.54%

AVIR

Atea Pharmaceuticals

3.16

-0.37

-10.48%

CMPX

Compass Therapeutics

2.41

1.24

105.98%

TERN

Terns Pharmaceuticals

3.88

-4.08

-51.26%

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.