Gossamer Bio downgraded to Market Perform from Outperform at Raymond James

Raymond James analyst Timur Ivannikov downgraded Gossamer Bio (GOSS) to Market Perform from Outperform without a price target following the publication of Merck’s (MRK) sotatercept’s Phase 3 data. The analyst already thought seralutinib would exhibit weaker efficacy than sotatercept in comparable populations, but says "the story got even worse" with sotatercept’s Phase 3 STELLAR outperforming Phase 2 PULSAR. Merck reported a difference of 40.8m in Phase 3 compared to LSMD of 24.9m in Phase 2, which makes the development path for Gossamer’s seralutinib even more difficult, the analyst tells investors in a research note.