Insider Buying

Insider Buying Report: Gossamer Bio Inc (GOSS:US)

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Gossamer Bio Inc (GOSS:US)

12-month performance: -41%
Insider activity: Bullish
Insider buying pattern: Purchases from three insiders including Chairman and CFO
Recent news: Released Phase 2 trial data

If multiple insiders are buying company stock, the stock may be worth a closer look. This buying pattern – which is called ‘cluster buying’ – is a particularly strong insider transaction signal.

In this report, we are going to highlight some cluster buying at Gossamer Bio Inc (GOSS:US). Gossamer Bio is a clinical-stage biopharmaceutical company that is focused on discovering, acquiring, developing, and commercializing therapeutics in the disease areas of immunology, inflammation, and oncology. It’s listed on the NASDAQ Global Select Market and currently has a market capitalization of $734 million.

Gossamer Bio: insider buying

Form 4 filings show that on 14 October, three insiders at Gossamer Bio purchased stock. Those buying included:

● Executive Chairman Faheem Hasnain, who purchased 96,520 shares
● CFO Bryan Giraudo, who purchased 3,000 shares
● Executive Vice President and General Counsel Christian Waage, who purchased 2,500 shares

Combined, these insiders spent around $1.05 million on Gossamer stock.

GOSS_US     Source: 2iQ Research

Cluster buying

This pattern of cluster buying looks interesting for a couple of reasons. Firstly, these are top-level insiders that have purchased stock. All three are likely to have deep insight into the company and its operations.

Secondly, this insider buying represents the largest amount of insider buying at Gossamer Bio in several years. Our Insider Model rates this buying activity as very bullish.

Phase 2 trials

Gossamer Bio shares fell recently after the company released topline results for phase 2b LEDA trials of its GB001 drug on patients with moderate-to-severe eosinophilic asthma. While consistent and meaningful numeric reductions in the odds of asthma worsening as compared to placebo were observed across all GB001 groups, the primary endpoint of the trial was not met. However, management sounded optimistic about the future:

“While we did not achieve statistical significance on the primary endpoint in the LEDA Study, we are encouraged by the consistent results observed for all three doses of once-daily, oral GB001 therapy across the primary and secondary endpoints” said Sheila Gujrathi, CEO of Gossamer. “We believe these data provide important information for designing a well-powered Phase 3 program for GB001 in severe asthma. We plan to engage in global regulatory discussions in order to inform our thinking around potential partnerships or strategic alternatives for this program.”

The insider buying activity here suggests that insiders remain confident in GB001’s prospects. We see this insider buying as a bullish signal.