Gossamer Bio Plunges 80% in a Day... Falls Short of Trial Bar with Just 13m Gain [New York Movers]

Shares of Gossamer Bio (ticker: GOSS) have plunged by more than 80%. The drop came after news that the company’s investigational pulmonary arterial hypertension (PAH) treatment failed to meet the threshold for statistical significance in a clinical trial.

Gossamer Bio closed on the 23rd (local time) at 0.42 dollars, down 80.13% from the previous trading day. In after-hours trading, the stock is falling nearly an additional 2%.

According to Reuters, the company’s PAH therapy seralutinib improved the 6-minute walking distance (6-minute walking distance) by only 13.3 meters compared with placebo at week 24 of the trial. This fell short of the threshold for statistical significance set in the study.

The company said that while it reviews certain discrepancies related to the placebo response observed in the PAH trial, it also plans to temporarily halt patient enrollment in a separate late-stage clinical trial that was underway for another lung disease.

Faheem Hasnain, Chief Executive Officer (CEO) of Gossamer Bio, said on a conference call with analysts that when the latest late-stage clinical data are combined with earlier mid-stage trial data, they form a "compelling package" to submit to the U.S. Food and Drug Administration (FDA). He argued that the results should be viewed as "clinically meaningful."