NVS - Is Gossamer Bio a Buy?
Most investors know what they're getting into when buying a stake in an early-stage pharmaceutical company. Anyone needing a reminder only has to look at the stock chart of Gossamer Bio (NASDAQ: GOSS).
The company raised $291 million from an initial public offering (IPO) in February, but the stock has been volatile in the nine months since. Today, shares trade hands at prices slightly above where they closed on their first day of trading.
Volatility isn't unusual for a pre-revenue pharma, but investors recently had to contend with a new source of uncertainty. The leading drug in the class of compounds shared by its lead drug candidate flopped in a clinical trial run by a competitor. Does that predict a similar fate for Gossamer Bio's workhorse, or provide a clear path to the top of a lucrative market?