Gossamer Bio Raises $212 Million in Private Placement Financing

Rare Daily Staff

Gossamer Bio said it raised $212 million in a private placement financing to advance the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension.

Pulmonary arterial hypertension (PAH) is life-threatening high blood pressure in the arteries of the lungs, affecting the ability of the heart and lungs to work properly in afflicted patients. PAH is a serious, progressive disease for which there is no cure.

The financing includes participation from new and existing institutional investors, including New Enterprise Associates (NEA), EcoR1 Capital, Armistice Capital, Farallon, Madison Avenue Partners, Nantahala, Samsara BioCapital, SilverArc Capital, Octagon Capital, Boxer Capital, Invus, the Federated Hermes Kaufmann Funds, Palo Alto Investors, and Rock Springs Capital, and certain directors and executive officers of Gossamer.

The financing comes two months after Gossamer said it would prioritize its pipeline to focus on seralutinib, cutting 25 percent of its workforce. Further development of all clinical and preclinical product candidates was terminated, and strategic options were being assessed for those candidates.

In the private placement, Gossamer is selling 129,869,440 shares of its common stock and accompanying warrants to purchase up to 32,467,360 shares of common stock, at a combined price of $1.63125 per share of common stock and accompanying warrant (or a combined price of $1.85125 per share and accompanying warrant for participating officers and directors). The warrants will have an exercise price of $2.04 per share of common stock, will be immediately exercisable and expire on July 24, 2028. The private placement is expected to close on July 24, 2023, subject to customary closing conditions. The financing was priced at-the-market under Nasdaq rules.

In addition to announcing this financing, Gossamer disclosed via an SEC 8-K filing that it would give an interim update of its phase 2 TORREY open-label extension (OLE) data and details of the design of the phase 3 PROSERA study in a conference call to be held on July 25.