Gossamer Bio gains after rival Aerovate scraps late-stage trial of lead drug

Jade Biosciences

17/06/2024 16:51

** Shares of drug developer Gossamer Bio  GOSS.O  rise 14%
to 59 cents after competitor Aerovate Therapeutics  AVTE.O 
scraps late-stage trial of lead lung disease drug 
    ** Aerovate's sole product, called AV-101, failed on key
goals in the mid-stage portion of a mid-to-late-stage study,    
 sending shares down more than 92% to $1.89
    ** AV-101 was tested in adults with a pulmonary arterial
hypertension (PAH), characterized by high blood pressure in the
arteries of the lungs 
    ** Gossamer's experimental therapy, seralutinib, is
currently in late-stage development for PAH treatment 
    ** Brokerage Leerink Partners said Aerovate's update has no
efficacy readthrough to GOSS that has already generated
encouraging mid-stage results 
    ** "With AVTE's program now discontinued, there could be
more PAH patients available for GOSS to potentially enroll" -
brokerage 
    ** Current treatment options include Merck's  MRK.N 
Winrevair, which was approved by the U.S. FDA in March 
    ** Including session's rise, GOSS down more than 34% 

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))