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Gossamer Bio's PAH drug failure sends stock crashing near $0.42

A failed trial leaves Gossamer Bio's future hanging by a thread. With shares near $0.42 and an FDA meeting looming, can the biotech recover?

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Gossamer Bio's PAH drug failure sends stock crashing near $0.42

Gossamer Bio's experimental drug seralutinib has failed a key Phase 3 trial for pulmonary arterial hypertension (PAH). The setback triggered a sharp drop in the company's stock, now trading near $0.42. Investors and analysts are closely watching the next steps as the firm prepares for a crucial FDA meeting in June.

The failure of the PROSERA Phase 3 trial has thrown Gossamer Bio's entire seralutinib development programme into doubt. The company, once valued higher, now holds a market capitalisation of just $99 million—officially classifying it as a penny stock. Since January, its shares have lost about 86% of their value.

Analyst reactions have been mixed. While four still recommend buying the stock, two now advise selling it. Price targets vary widely, from a low of $0.30 to a high of $15.00, with an average of $5.43. Cantor Fitzgerald recently downgraded its rating from 'Overweight' to 'Neutral' following the trial's disappointing outcome. Gossamer Bio has scheduled a 'Type C' meeting with the U.S. Food and Drug Administration (FDA) in June to discuss potential regulatory paths forward. Concrete results from that discussion are expected by July. Meanwhile, the company will release its next quarterly earnings report on May 12. The PROCERA Phase 3 study, a separate trial for seralutinib, was originally set to deliver results in February 2026. However, no prior data on the drug's performance in earlier studies has been disclosed.

The failed trial leaves Gossamer Bio facing an uncertain future. With its stock price near historic lows and regulatory clarity still pending, the company's next moves will be critical. Investors await the FDA's feedback and the upcoming earnings report for further direction.

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