Gossamer Bio Announces Fourth Quarter and Full-Year 2023 Financial Results and Provides Business Update

Rhea-AI Summary

Gossamer Bio, Inc. dosed the first PAH patient in the Phase 3 PROSERA Study, including Japan, with $296 million in cash equivalents. Faheem Hasnain, CEO, highlighted progress and potential in bringing seralutinib to market.

Insights

Medical Research Analyst

The initiation of the Phase 3 PROSERA study by Gossamer Bio and the dosing of the first patient with seralutinib for the treatment of pulmonary arterial hypertension (PAH) is a critical step towards potential FDA approval and commercial availability. This is particularly significant as PAH is a rare, progressive disorder characterized by high blood pressure in the arteries of the lungs, which can lead to heart failure if untreated. The inclusion of Japanese patients in the study without a pharmacokinetic bridging study, due to new regulatory guidelines, may expedite the drug's availability in Japan and demonstrates Gossamer's strategic regulatory planning. The success of this trial could not only enhance treatment options for PAH but also substantially increase Gossamer's market share in the specialty pharmaceutical sector that caters to rare diseases.

Financial Analyst

The financial stability of Gossamer Bio, with $296 million in cash, cash equivalents and marketable securities at the end of 2023, positions the company favorably in terms of capital to continue its clinical trials without the immediate need for additional fundraising. This financial footing is crucial for investors to consider as it suggests a lower risk of dilutive financing in the near term. However, the costs associated with the ongoing PROSERA study and future marketing efforts, should seralutinib be approved, will likely increase operational expenses. Investors should monitor the burn rate and future earnings reports to gauge the sustainability of Gossamer's financial position and the impact of the trial's progress on the company's valuation.

Market Research Analyst

The strategic move by Gossamer Bio to include Japanese patients in their global study may tap into Japan's pharmaceutical market, which is one of the largest in the world. By circumventing the need for a separate pharmacokinetic study, Gossamer could potentially shorten the time to market and reduce costs, providing a competitive edge. The success of seralutinib in the PROSERA study could lead to a first-mover advantage in new markets, especially considering the high entry barriers in the pharmaceutical industry due to stringent regulatory requirements. Market analysts will be keen to observe patient recruitment rates, study outcomes and the speed at which Gossamer can navigate the regulatory landscape in multiple jurisdictions, as these factors will significantly influence the company's market potential and investor confidence.

- First PAH Patient Dosed in Ongoing Registrational Phase 3 PROSERA Study -

- Inclusion of Japan in Phase 3 PROSERA Study Following CTN Acceptance by PMDA -

- Cash, cash equivalents and marketable securities totaled $296 million at year-end 2023 -

SAN DIEGO--(BUSINESS WIRE)-- Gossamer Bio, Inc. (Nasdaq: GOSS), a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension (PAH), today announced its financial results for the fourth quarter and year ended December 31, 2023, and provided a business update.

“We were thrilled to enroll the first patient in the registrational PROSERA Study last year, and we are pleased with the pace of site activations and enrollment into the study,” said Faheem Hasnain, Chairman, Co-Founder and CEO of Gossamer Bio. “This advancement marks a significant milestone in Gossamer’s journey, and it was made possible due to the tireless efforts of the Gossamer team. We are excited to be one step closer to bringing seralutinib to patients.

“Additionally, we believe Gossamer is one of the first companies to take advantage of new Japanese regulatory guidelines, formally issued at the end of last year, to allow for the inclusion of Japanese subjects in our global registrational study of seralutinib without performing a pharmacokinetic bridging study. Subject to final results, PROSERA could form the basis of a Japanese New Drug Application, accelerating the potential commercial availability of seralutinib to PAH patients in Japan and unlocking a valuable geographic market for Gossamer.

“Beyond PAH, we remain excited about the potential of seralutinib to treat patients living with other forms of pulmonary hypertension, including pulmonary hypertension associated with interstitial lung disease, or PH-ILD. Patients with PH-ILD are in desperate need of safe and efficacious therapies, with just one therapy approved in the US and no approved therapies available in the rest of the world. We believe seralutinib holds great promise for these patients, and our team is eagerly working through a clinical development plan.”

Seralutinib (GB002): Inhaled PDGFR, CSF1R and c-KIT Inhibitor

• The first PAH patient in the ongoing Phase 3 PROSERA Study was dosed in the fourth quarter of 2023. The Phase 3 PROSERA Study is a global registrational clinical trial in patients with Functional Class II and III PAH. The primary endpoint is change in six-minute walk distance (6MWD) from baseline at week 24. Topline results from the PROSERA Study are expected in the fourth quarter of 2025.
• The Pharmaceuticals and Medical Devices Agency of Japan, or PMDA, allowed inclusion of Japanese clinical trial sites in the ongoing Phase 3 PROSERA Study. Subject to final clinical trial results, PROSERA could form the basis of a commercial marketing application in Japan.

Financial Results for Quarter and Full Year Ended December 31, 2023

• Cash, Cash Equivalents and Marketable Securities: Cash, cash equivalents and marketable securities as of December 31, 2023, were $296.4 million. As a result, we expect our current cash, cash equivalents and marketable securities will be sufficient to fund operating and capital expenditures into the first half of 2026.
• Research and Development (R&D) Expenses: For the quarter ended December 31, 2023, R&D expenses were $30.0 million compared to R&D expenses of $41.5 million for the same period in 2022. R&D expenses for the full year ended December 31, 2023, were $135.3 million compared to $170.9 million for the full year ended December 31, 2022.
• General and Administrative (G&A) Expenses: For the quarter ended December 31, 2023, G&A expenses were $9.1 million compared to $12.8 million for the same period in 2022. G&A expenses for the full year ended December 31, 2023, were $38.5 million compared to $47.6 million for the full year ended December 31, 2022.
• Net Loss: Net loss for the three months ended December 31, 2023, was $48.1 million, or $0.21 per share, compared to a net loss of $55.8 million, or $0.59 per share, for the same period in 2022. Net loss for the full year ended December 31, 2023, was $179.8 million, or $1.18 per share compared to a net loss of $229.4 million, or $2.71 per share, for the full year ended December 31, 2022.

About Gossamer Bio

Gossamer Bio is a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension. Its goal is to be an industry leader in, and to enhance the lives of patients suffering from, pulmonary hypertension.

Forward-Looking Statements

Gossamer cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: the anticipated timing of a data readout from our Phase 3 PROSERA Study; expectations on commencing a clinical development program in PH-ILD; the ability to file a commercial marketing application in Japan pending clinical data; and the expected timeframe for funding our operating plan with current cash, cash equivalents and marketable securities. The inclusion of forward-looking statements should not be regarded as a representation by Gossamer that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Gossamer’s business, including, without limitation: potential delays in the commencement, enrollment and completion of clinical trials; disruption to our operations from pandemics, including clinical trial delays; the Company’s dependence on third parties in connection with product manufacturing, research and preclinical and clinical testing; the results of preclinical studies and early clinical trials are not necessarily predictive of future results; the success of Gossamer’s clinical trials and preclinical studies for seralutinib; regulatory developments in the United States and foreign countries; unexpected adverse side effects or inadequate efficacy of seralutinib that may limit its development, regulatory approval and/or commercialization, or may result in clinical holds, recalls or product liability claims; Gossamer’s ability to obtain and maintain intellectual property protection for seralutinib; Gossamer’s ability to comply with its obligations in collaboration agreements with third parties or the agreements under which it licenses intellectual property rights from third parties; unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may adversely affect our business and financial condition and the broader economy and biotechnology industry; Gossamer may use its capital resources sooner than it expects; and other risks described in the Company’s prior press releases and the Company’s filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in the Company’s annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Gossamer undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

GOSSAMER BIO, INC. CONDENSED CONSOLIDATED FINANCIAL STATEMENT DATA (UNAUDITED; IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
	Three months ended December 31,								Year ended December 31,
STATEMENTS OF OPERATIONS DATA:		2023				2022				2023				2022
Operating expenses:
Research and development	$	29,970			$	41,508			$	135,304			$	170,919
In process research and development		10,000				15				10,000				65
General and administrative		9,057				12,834				38,455				47,609
Total operating expenses		49,027				54,357				183,759				218,593
Loss from operations		(49,027	)			(54,357	)			(183,759	)			(218,593	)
Other income (expense)
Interest income		310				594				1,997				1,583
Interest expense		(3,239	)			(3,457	)			(13,511	)			(13,880	)
Other income, net		3,808				1,456				15,456				1,512
Total other income (expense), net		879				(1,407	)			3,942				(10,785	)
Net loss	$	(48,148	)		$	(55,764	)		$	(179,817	)		$	(229,378	)
Net loss per share, basic and diluted	$	(0.21	)		$	(0.59	)		$	(1.18	)		$	(2.71	)
Weighted average common shares outstanding, basic and diluted		225,409,315				94,280,553				152,621,669				84,574,869

BALANCE SHEET DATA:	December 31, 2023				December 31, 2022
Cash, cash equivalents, and marketable securities	$	296,425			$	255,678
Working capital		254,921				212,650
Total assets		311,916				272,450
Total liabilities		249,147				260,373
Accumulated deficit		(1,212,040	)			(1,032,223	)
Total stockholders' equity		62,769				12,077

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240305623826/en/

For Investors and Media:

Bryan Giraudo, Chief Financial Officer & Chief Operating Officer

Gossamer Bio Investor Relations

ir@gossamerbio.com

Source: Gossamer Bio, Inc.

FAQ

When was the first patient dosed in the Phase 3 PROSERA Study?

The first patient was dosed in the Phase 3 PROSERA Study last year.

What is the total cash, cash equivalents, and marketable securities at year-end 2023?

The total was $296 million at year-end 2023.

What is Gossamer Bio focused on developing and commercializing?

Gossamer Bio is focused on developing and commercializing seralutinib for the treatment of pulmonary arterial hypertension (PAH).

Who is the Chairman, Co-Founder, and CEO of Gossamer Bio?

Faheem Hasnain is the Chairman, Co-Founder, and CEO of Gossamer Bio.

What milestone did Gossamer Bio achieve with the enrollment of the first patient in the PROSERA Study?

The enrollment of the first patient in the PROSERA Study marked a significant milestone in Gossamer Bio's journey.