Guggenheim starts Gossamer at Neutral after ‘underwhelming’ data

Guggenheim analyst Vamil Divan initiated coverage of Gossamer Bio with a Neutral rating and no price target. The analyst assigns a 70% probability of success for seralutinib and estimates peak adjusted annual sales of $550M in pulmonary arterial hypertension. Seralutinib’s efficacy in the Phase 2 TORREY study was underwhelming and could ultimately limit seralutinib to a minor share of the PAH market, the analyst tells investors in a research note.