Gossamer Bio secures option to acquire Respira Therapeutics

SAN DIEGO - Gossamer Bio, Inc. (NASDAQ:GOSS), whose stock has surged over 230% year-to-date according to InvestingPro data, has entered into an option agreement to acquire Respira Therapeutics and its lead product candidate RT234, according to a press release statement from the company. The biotech firm, currently valued at approximately $680 million, has shown strong momentum despite ongoing profitability challenges.

RT234 is an investigational inhaled, as-needed (PRN) vardenafil dry powder formulation designed for pulmonary hypertension (PH) conditions, including pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).

Under the agreement terms, Gossamer will issue 2.5 million shares (approximately 1% of outstanding common shares) upon signing, with an additional 1.5 million shares due if the option is exercised. Respira shareholders will be eligible for success-based milestone payments and a high single-digit royalty on potential net sales. InvestingPro analysis reveals the company maintains a healthy current ratio of 4.4, indicating strong ability to meet short-term obligations, though it’s currently operating at a significant cash burn rate.

During the option period of up to two years, Gossamer will fund certain pre-agreed development expenses focused on chemistry, manufacturing, controls (CMC) and device readiness for RT234.

The company noted that two completed open-label Phase 2 studies in PAH patients showed RT234 demonstrated improvements in both hemodynamic and functional measures, with no major safety issues reported to date.

Faheem Hasnain, Co-Founder, Chairman, and CEO of Gossamer Bio, stated, "There is a clear unmet need for an ’as needed’ therapy in PAH and PH-ILD, where patients lack an option for rapid symptom management."

If exercised, Gossamer intends to pursue a 505(b)(2) regulatory pathway for RT234 in the United States and does not expect to commence clinical trials until at least 2027.

The transaction structure is designed to minimize near-term cash burn while allowing Gossamer to maintain focus on its existing pulmonary hypertension programs, particularly seralutinib, which is in late-stage development for PAH and PH-ILD.

Respira Therapeutics is backed by Samsara BioCapital, a life sciences investment firm.

In other recent news, Gossamer Bio has been the focus of several analyst updates and developments. UBS upgraded Gossamer Bio’s stock rating from Neutral to Buy, raising the price target to $9.00 due to optimism surrounding the company’s Phase 3 trial for seralutinib, a treatment for pulmonary arterial hypertension (PAH). H.C. Wainwright has maintained its Buy rating with a $10 price target, citing the potential of seralutinib to modify disease progression in PAH patients. Similarly, Cantor Fitzgerald reiterated its Overweight rating, highlighting improving investor sentiment as Gossamer Bio approaches its PROSERA clinical trial readout expected in February 2026. These recent developments indicate a general positive outlook from analysts regarding Gossamer Bio’s future performance in its PAH treatment trials. The emphasis on seralutinib’s potential has been a common theme in these analyses. Investors are closely watching as the company prepares for key clinical data releases in early 2026.

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