GOSS

Business Context and Reporting Period

Gossamer Bio, Inc. is a late-stage clinical biopharmaceutical company focused on developing seralutinib for pulmonary hypertension (PH), including pulmonary arterial hypertension (PAH) and PH associated with interstitial lung disease (PH-ILD). This Form 10-Q covers the quarterly period ended June 30, 2025. The Company operates as a single segment and relies heavily on its collaboration with Chiesi Farmaceutici S.p.A. for revenue and cost-sharing.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Decline: Total revenue decreased significantly compared to the prior year periods due to the absence of one-time license revenue recognized in 2024. In the three months ended June 30, 2024, revenue was $95.8 million, driven by $88.8 million in license sales from the Chiesi Collaboration Agreement. In the current period, revenue of $11.5 million consisted entirely of cost-sharing reimbursements for research and development services.
• Net Loss vs. Net Income: The Company reported a net loss of $38.3 million for the three months ended June 30, 2025, compared to net income of $49.2 million in the same period in 2024. The prior year's income was largely attributable to the recognition of the Chiesi license revenue.
• Increased R&D Spend: Research and development expenses increased by $6.5 million (18.5%) for the three months ended June 30, 2025, compared to the prior year, primarily due to increased costs for the seralutinib clinical trials, offset by the cessation of costs for terminated programs.
• Cash Position: Cash and cash equivalents decreased from $46.1 million at December 31, 2024, to $26.3 million at June 30, 2025, though total liquid assets (including marketable securities) remain at $212.9 million.

Outlook, Risks, and Management Commentary

• Clinical Progress: The Company completed enrollment for the Phase 3 PROSERA study in PAH in June 2025 and expects to report topline data in February 2026. The Phase 3 SERANATA study for PH-ILD is expected to activate its first clinical sites in Q4 2025.
• Liquidity: Management believes current cash, cash equivalents, and marketable securities are sufficient to fund operations for at least the next 12 months. However, the Company expects to continue incurring significant operating losses and may need to raise additional capital through equity or debt offerings.
• Chiesi Collaboration: The Company continues to recognize revenue over time based on the progress of research and development services. A contract liability of $55.0 million remains, representing unsatisfied performance obligations expected to be recognized over 3.5 years.
• Risks: Key risks include the failure to achieve regulatory approval for seralutinib, the inability to raise additional capital, and potential impacts from healthcare reform legislation (e.g., the Inflation Reduction Act and the One Big Beautiful Bill Act) which could affect pricing and reimbursement.

Investor Verification Checklist

• Verify the timeline and potential data readout date for the Phase 3 PROSERA study (expected February 2026).
• Confirm the sufficiency of the $212.9 million cash position relative to the projected burn rate for the next 12 months.
• Review the terms of the 5.00% Convertible Senior Notes due 2027, including the conversion price of approximately $16.23 per share and redemption conditions.
• Monitor the recognition of the $55.0 million contract liability from the Chiesi Collaboration Agreement and any potential adjustments to estimated collaboration expenses.
• Assess the impact of the "One Big Beautiful Bill Act" (enacted July 2025) on Medicaid funding and potential future revenue streams.