Shares of Gossamer Bio fell Thursday, and the company earned a downgrade from analysts at UBS.
Citing a "lack of near-term catalysts," the firm downgraded the biopharmaceutical company to Neutral from Buy and slashed its price target to $1.25 from $8. Shares of Gossamer traded 5% lower Thursday afternoon at $1.20.
Gossamer is developing an inhaled pulmonary arterial hypertension (PAH) treatment called seralutinib, but UBS isn’t expecting upside anytime soon.
“We continue to see meaningful and underappreciated potential for seralutinib ... However, from a stock perspective, we think the next few years are more about execution,” the analysts wrote.
The firm also lowered its peak seralutinib sales estimate to $1.5 billion from $2 billion “in light of the strength of competitor sotatercept ... and limited catalysts to get investors more confident in seralutinib.”
Looking ahead, phase 3 data will be something of a “show-me story,” analysts wrote.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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