Gossamer Bio Posts Quarterly Losses Above Expectations Despite Third-Quarter Revenue Growth
Key Facts
Gossamer Bio reported on November 10 results for the third quarter ended September 30, 2026, posting collaboration revenue of $38.431 million, compared with $13.294 million in the same period a year earlier. Net loss was $48.072 million, or $7.36 per share, compared with a net loss of $48.221 million and a loss of $16.92 per share a year earlier. The company attributed most of the $25.1 million revenue increase to revenue recognized when it terminated its collaboration agreement with Chiesi in July. This means the quarterly revenue surge was primarily linked to a change in the agreement and the return of drug rights, while net loss edged down year over year. Investors are now focused on the company's cash resources and the regulatory path for its seralutinib application.
Gossamer said the termination returned global development and commercialization rights for seralutinib to the company, while Chiesi retained limited royalty rights and payments tied to certain regulatory and commercial milestones. The agreement calls for Chiesi to pay Gossamer $5 million. The companies had shared profits in the United States, while Chiesi's rights extended to other markets; ending the collaboration allowed Gossamer to regain global rights to the drug. The shift places responsibility for developing and marketing seralutinib with Gossamer, while leaving some potential payments to Chiesi tied to later milestones. The quarterly figures show the effect of the termination on reported revenue, but do not by themselves represent recurring income from drug sales.
On the expense side, research and development costs fell to $18.8 million in the third quarter of 2026, from $45.5 million a year earlier. The company attributed the decline mainly to a $15.7 million decrease in seralutinib clinical trial costs. General and administrative expenses, by contrast, rose to $9.6 million from $9.4 million in the comparable period. The figures show that lower research spending was the largest change in reported expenses, while administrative costs remained close to their previous level. The drop in spending did not change the fact that the company continued to report a net loss during the quarter.
Cash, cash equivalents and marketable securities totaled $51.2 million on September 30, 2026, compared with $57.0 million on June 30. The company said in August that its cash resources at the time were sufficient to cover operating and capital expenses through the first quarter of 2027. That estimate dates from August, when the liquidity balance differed from the amount reported at the end of September. The company links part of its funding outlook to the drug's regulatory path, having submitted a new drug application to the U.S. Food and Drug Administration in September. The earnings release does not provide a new estimate of how long liquidity will last beyond the end of the quarter.
Gossamer submitted the seralutinib new drug application for the treatment of pulmonary arterial hypertension in September 2026, the company's first such application. The submission relied on the Phase 3 PROSERA trial as one adequate and well-controlled clinical study, alongside confirmatory evidence from the Phase 2 TORREY trial and supporting analyses. In the predefined PROSERA subgroup of intermediate- and high-risk patients, which included 234 patients, the improvement over placebo was 20.0 meters, with a p-value of 0.0207. The company said 3 of 4 key secondary endpoints recorded a p-value below 0.0125, while noting that the values are nominal because the primary endpoint did not meet its threshold. The subgroup results remain part of the evidence submitted by the company, while the application is under agency review.
Gossamer said the FDA described the strength of statistical significance and the size of the treatment effect in PROSERA as “issues for substantive review, not for filing acceptance.” The agency will decide whether to accept the application after its preliminary review, then assess the adequacy of its components, including efficacy and safety evidence, during substantive review. If the application is accepted for filing, the company said in August that seralutinib could be eligible for an agency approval decision in the third quarter of 2027. That timeline is conditional on the application being accepted and is not a confirmed date for an approval decision. GOSS shares closed at $10.65 on November 9, the day before the quarterly results were announced.
The company completed a 1-for-80 reverse stock split in September, and trading in the stock began on a split-adjusted basis under the ticker GOSS. The move came in a quarter marked by the recognition of substantial revenue upon termination of the Chiesi collaboration, alongside lower research and development expenses and a decline in liquidity from the end of June. The next developments announced by the company center on the preliminary review of the seralutinib application, followed by the agency's assessment of efficacy and safety evidence if it accepts the application. The company has tied the possibility of an approval decision in the third quarter of 2027 to acceptance of the application for filing. The next regulatory step therefore remains central to monitoring the company's plans for the drug and its earlier estimate of cash resources.