Gossamer Bio Secures Up to $250 Million in Funding to Advance Seralutinib Development for Pulmonary Hypertension

Gossamer Bio has entered into a private placement agreement valued at up to $250 million, with $150 million in committed capital aimed at advancing the development and potential U.S. Food and Drug Administration (FDA) approval of seralutinib.

Seralutinib is being developed to treat pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).

The financing includes an initial closing and a subsequent tranche contingent on FDA acceptance of a new drug application (NDA) for seralutinib in PAH, along with warrants that become exercisable upon FDA approval.

The company intends to submit the NDA by September 2026. Proceeds from the investment are expected to support the continued clinical development and potential commercialization of seralutinib, with net funds projected to sustain operations through 2028.

Gossamer Bio recently regained full global rights to seralutinib.

The financing is supported by key institutional investors, including EcoR1 Capital and RA Capital Management. The initial closing is expected to generate approximately $25 million through the sale of pre-funded warrants priced at $0.14 per share, minus a nominal exercise price.

A follow-on closing would release an additional $125 million upon NDA acceptance. Investors are contractually committed to fulfilling this portion of the investment should the NDA acceptance milestone be achieved. The purchase price for the second tranche of pre-funded warrants will be based on the market’s five-day volume-weighted average price, reduced by their nominal exercise cost.

Gossamer Bio’s chairman, co-founder, and CEO Faheem Hasnain stated, “This committed funding approach aligns capital availability with critical regulatory milestones and is designed to support the planned submission and review of our NDA.”

“We’re grateful for the continued confidence of these leading healthcare investors as we work toward bringing a potentially impactful new therapy to patients living with PAH.”

Additionally, investors will receive warrants exercisable upon FDA approval. If fully exercised at $0.187 per share, these could provide up to $100 million more in capital. The warrants will expire either 30 days after FDA approval is secured or five years from their issuance date, whichever comes first.

Leerink Partners and Cantor are acting as joint placement agents for the financing.

In May 2024, Gossamer Bio and Chiesi Farmaceutici announced a global partnership and licensing agreement to develop and commercialize seralutinib for pulmonary hypertension indications.

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