1. Gossamer Bio, Inc. (NASDAQ:GOSS)
Number of Hedge Fund Investors: 38
Gossamer Bio is a biopharmaceutical company in the clinical stage that is primarily concerned with the development and marketing of seralutinib as a therapy for pulmonary hypertension. Its objectives are to lead the industry in pulmonary hypertension and improve the quality of life for those who suffer from it in the US.
Analysts are bullish on the stock and rate it as a “strong buy,” with an average target price of $9.20 and an upside potential of 793.20% from the current stock price of $1.06. In Q1 2024, the company saw an increase in popularity among hedge funds tracked by Insider Monkey, as the number of bullish investors increased from the last quarter from 31 to 38. Steve Zhengis’s Deepcurrents Investment Group is the largest stakeholder in the company, with 29,860,000 shares worth $11.71 million.
Recent Phase 2 research results show that their medicine has the potential to treat pulmonary arterial hypertension (PAH). Working together with Chiesi, GOSS hopes to boost seralutinib’s reputation and get it closer to crucial Phase 3 trials.
Gossamer Bio Inc. (NASDAQ:GOSS) is trading at $1.03 per share. The company’s SG&A costs have continuously decreased over the preceding four years, demonstrating better cost control and operational efficiency. In 2023, SG&A costs declined by 19.22% YoY, from 47.61 to 38.46.
Gossamer Bio Inc (NASDAQ:GOSS) announced $0.19 EPS in the first quarter of fiscal year 2024, which met the average analyst estimate. The GOSS increased its financial runway for future growth this quarter by reporting $396 million in cash and an extra $160 million in reimbursement payments.
Gossamer Bio (NASDAQ: GOSS) has made significant strides with its seralutinib product, as seen by Chiesi’s $160 million development reimbursement and the anticipated start of a Phase 3 trial in mid-2025. As of March 31, 2024, the company reported having $244.4 million in cash and equivalents, 21.07% cash growth since 2023. The pro forma total post-reimbursement was $396 million, which is more than enough to sustain operations until H1 2027. While G&A spending saw a minor reduction to $9.6 million in Q1 2024 from the same quarter last year, R&D expenses fell to $32.4 million from $37.8 million. Over the previous year, the net loss decreased to $41.9 million ($0.19 per share) from $49.2 million ($0.52 per share). Positive recent developments from partnerships and clinical studies put the business in a good position for future expansion.
Key concerns for Gossamer Bio include finance requirements, regulatory obstacles, competition, and clinical trial results. In spite of this, investors maintain a buy rating for Gossamer Bio because of its favorable valuation (below cash value) and the possibility that seralutinib will be approved. With Chiesi’s assistance, the business should be able to finish Phase 3 with its $244 million cash balance. Seralutinib’s inhaled formulation’s ease of use and the unique mechanisms separating it from Sotatercept give it a strong market position.
While we acknowledge the potential of GOSS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Gossamer Bio but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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