GOSS - Why Gossamer Bio Stock Is Swinging Wildly Today
Shares of Gossamer Bio (NASDAQ: GOSS) fell as much as 14.6% at the market open on Tuesday, then soared as much as 21.4% less than an hour later. The biotech stock was up by 6.7% as of 11:20 a.m. EDT.
Why such wild swings? Novartis (NYSE: NVS) announced that its experimental asthma drug fevipiprant failed to meet the primary endpoint in two late-stage clinical studies. Gossamer's lead pipeline candidate, GB001, is a DP2 antagonist like fevipiprant. Investors at first assumed that Novartis' failure could mean that Gossamer's drug is likely to flop as well. However, the immediate negative reaction gave way to optimism that Gossamer might be successful anyway -- and without having to face competition from Novartis.
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