Gossamer Bio partnership with Chiesi a positive, says Guggenheim

Guggenheim tells investors in a research note that Gossamer Bio announced a partnership with Chiesi Group for the development and commercialization of seralutinib in pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease and other potential indications. The firm thinks that the partnership is a positive development for Gossamer as the cash provided by the $160M development reimbursement largely allays concerns around the funding of their ongoing Phase 3 PROSERA study in PAH, while also providing the company with the ability to initiate a registrational Phase 3 study in PH-ILD as early as mid-2025, but it does limit the peak sales and earnings potential for Gossamer given the 50/50 commercial profit split in the U.S. and the sale of ex-U.S. commercial rights. Guggenheim made no change to its Neutral rating on shares of Gossamer Bio and said it was “somewhat surprised” by the muted stock reaction to the news.