Chardan Lights Up Gossamer Bio With $160 Target Amid PAH Approval Hopes

Chardan Capital has launched coverage on Gossamer Bio Inc. (NASDAQ:GOSS), issuing a Buy recommendation and a $160 price target. The target represents a dramatic upside from Gossamer’s current trading level of $9.28, which sits just above its 52‑week low of $8.99 and is down 96 % from its all‑time high. With a market capitalization of only $56.8 million, the company is a small‑cap play that Chardan believes is poised for significant upside.

The catalyst for the bullish view is the potential FDA approval of seralutinib, an inhaled multi‑kinase inhibitor that targets PDGFRα/β, CSF1R and c‑KIT for use as an add‑on therapy in pulmonary arterial hypertension (PAH). The drug’s clinical data come from the Phase 3 PROSERA study, which narrowly missed its statistical endpoint, and the Phase 2 TORREY study. Chardan notes that a favorable FDA decision would unlock up to $100 million in warrant proceeds.

A key turning point is the anticipated acceptance of the New Drug Application (NDA) in the fourth quarter of 2026. If approved, the filing would de‑risk the program and trigger a $125 million second closing from the August private placement, bringing Gossamer’s pro‑forma cash to roughly $200 million. This would fund operations through 2028 and allow the company to weather a potential third‑quarter 2027 FDA decision.

Chardan’s valuation model assumes a 65 % probability of approval and projects roughly $1.3 billion in unadjusted seralutinib revenue by 2035. The model is built on a peak market share of about 10 % of treated U.S. PAH patients and 6 % of the ex‑U.S. market, within a PAH market that the company forecasts to reach $14 billion by 2035.

Despite the upside, Chardan cautions that Gossamer is burning cash, reporting negative free‑cash‑flow of $162.6 million. Nevertheless, the analyst team regards the stock as undervalued at current levels and has named Gossamer its top small‑cap pick for 2027.

Other analysts have taken note: Leerink upgraded Gossamer to Outperform following positive FDA feedback on the PROSERA trial, and H.C. Wainwright reaffirmed a Buy with a $2.00 target. Gossamer has also reacquired worldwide rights to seralutinib, further consolidating its position in the PAH space.