Gossamer Bio Price Target Slashed to $0.77, Stock Plunges 60% After Trial Failure
Analysts have cut Gossamer Bio’s consensus price target from $4.06 a year ago to $0.77 this month after the Phase 3 PROSERA trial failed its primary endpoint, triggering a 60% stock drop. However, 81.2% institutional and insider ownership and a hammer chart pattern suggest potential recovery.
1. Consensus Price Target Decline
Gossamer Bio’s consensus price target has plunged from $4.06 a year ago to $2.83 last quarter and $0.77 this month, reflecting growing analyst skepticism about its clinical assets.
2. Phase 3 PROSERA Trial Failure Impact
The Phase 3 PROSERA trial for seralutinib missed its primary endpoint, triggering a stock collapse exceeding 60% and eroding investor confidence in the pulmonary arterial hypertension therapy.
3. Institutional Ownership and Technical Indicators
With institutional and insider holders owning 81.2% of shares, a hammer chart formation and upward revisions in earnings estimates suggest the stock may have found support and is poised for a rebound.