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Gossamer Bio price target lowered to $7 from $15 at BofA

BofA analyst Geoff Meacham lowered the firm’s price target on Gossamer Bio (GOSS) to $7 from $15 and keeps a Buy rating on the shares. Despite a positive result for the phase 2 TORREY study in pulmonary arterial hypertension, or PAH, investors were "largely disappointed" by the efficacy data, which looks to be weaker than competitor Merck’s (MRK) sotatercept, sending shares down over 70% yesterday, noted Meacham. His lower target is based on a lower market opportunity, but he keeps a Buy rating since shares are trading below cash of $3 per share and he sees "a positive benefit / risk skew" for Gossamer, the analyst added.

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