Gossamer Bio, Inc. (GOSS) Accused of Misleading Shareholders
On February 8, 2019, Gossamer held its IPO offering approximately 17.25 million shares at $16.00 per share and raising $256 million in proceeds. In Gossamer’s IPO offering materials, the Company claimed that GB001 had not met its primary endpoint for improvement in a phase 2 trial due to “study design and execution issues related to patient selection” and assured that Novartis, who had a product like GB001, had a successful phase 2 trial that clinically validated DP2 antagonism. Gossamer maintained these statements throughout the class period, allowing its stock to trade as high as $27.15 per share. However, on December 16, 2019, Novartis announced it was terminating the development of its similar DP2 antagonist drug for asthma after it failed a pair of phase 3 clinical trials. On this news, Gossamer’s stock plummeted 37% to close at $15.96 per share. The stock has yet to recover.
