Piper says ‘Street overreacted’ to Gossamer data, seralutinib still ‘promising’

Piper Sandler analyst Yasmeen Rahimi believes "the Street overreacted" in terms of the stock movement for Gossamer Bio because PVR and 6MWT came in below expectations in the data reported from its TORREY Phase 2 study of seralutinib in patients with pulmonary arterial hypertension, or PAH. However, seralutinib showed consistent alignment across key efficacy measures and "the Street may not appreciate that the OLE data could show promising 6MWT and PVR changes," further de-risking the Phase 3 study. Rahimi, who argues that the "future of seralutinib is promising" despite the market reaction to this data, keeps an Overweight rating and $15 price target on Gossamer shares, which are down $6.88, or 74%, to $2.42 in morning trading.