Gossamer Bio downgraded to Equal Weight from Overweight at Barclays

Barclays analyst Carter Gould downgraded Gossamer Bio to Equal Weight from Overweight with a price target of $2, down from $18, after the company announced headline data from the seralutinib Phase 2 TORREY study in pulmonary arterial hypertension. The statistical significance positive "was modest and fell short of clinical significance," Gould tells investors in a research note. The analyst believes this will limit "how de-risking these data will be viewed, particularly against the backdrop of uncertain funding for the full phase 3 program." In addition, Gossamer’s ultimate clinical impact remains unclear given likely shifts in the underlying standard of care over the next 12-18 months with sotatercept’s introduction, says Gould.