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Gossamer Bio Announces 2018 Annual Financial Results

SAN DIEGO–(BUSINESS WIRE)–Gossamer
Bio, Inc.
(Nasdaq:GOSS), a clinical-stage biopharmaceutical company
focused on discovering, acquiring, developing and commercializing
therapeutics in the disease areas of immunology, inflammation and
oncology, today announced its financial results for the year ended
December 31, 2018 and provided an update on recent corporate
developments.

Since the launch of Gossamer just over a year ago, we have built a
robust and balanced pipeline of product candidates, including three
clinical-stage assets and multiple preclinical programs, all with
potential to meet high unmet medical needs across multiple disease
areas,” said Sheila Gujrathi, M.D., Gossamer’s Co-Founder and Chief
Executive Officer. “With the recent successful completion of our initial
public offering, we added to our already strong cash position, extending
our runway and providing additional resources to rapidly advance our
product candidates. I am extremely proud of all that the Gossamer team
has accomplished to date. Our objective is to leverage our deep
experience in immunology to enhance and extend the lives of patients
with inflammatory and immune-related diseases, including cancer, and I
look forward to sharing our progress as we work to bring forth important
new medicines to patients.”

Recent Highlights

Commenced Phase 2b trial for GB001. In October 2018, Gossamer
commenced a Phase 2b trial of the company’s lead candidate, GB001, an
oral antagonist of prostaglandin D2 receptor 2 (DP2), in patients with
moderate-to-severe eosinophilic asthma. Gossamer expects to conduct an
interim analysis for this trial in the first half of 2020 and to
announce topline data from the trial in the second half of 2020.

Completed initial public offering (IPO). In February 2019,
Gossamer closed its IPO of 19,837,500 shares of its common stock at a
price to the public of $16.00 per share. Gossamer raised aggregate gross
proceeds of $317.4 million from the offering, prior to deducting
underwriting discounts and other offering expenses.

Full-Year 2018 Financial Results

  • Cash, Cash Equivalents and Marketable Securities: Cash, cash
    equivalents and marketable securities as of December 31, 2018 were
    $228.7 million. Subsequent to year end, Gossamer raised approximately
    $295.2 million in its IPO, net of underwriting discounts.
  • Research and Development (R&D) Expenses: For the year ended
    December 31, 2018, R&D expenses were $55.3 million, which included
    $6.0 million of costs related to personnel and external consultants.
  • In-Process Research and Development (IPR&D) Expenses: For
    the year ended December 31, 2018, IPR&D expenses were $49.7 million,
    which was primarily attributable to approximately $27.5 million of
    costs related to up-front in-licensing and product acquisition
    payments related to GB004 and GB1275, and $19.1 million of costs
    associated with the issuance of stock in connection with the
    acquisition of GB001.
  • General and Administrative (G&A) Expenses: For the year
    ended December 31, 2018, G&A expenses were $44.1 million, which was
    primarily attributable to $30.3 million in stock-based compensation
    costs, $6.0 million in personnel-related costs, $3.7 million in
    professional fees, $1.3 million in legal fees and $0.8 million in
    facility-related costs.
  • Net Loss: For the year ended December 31, 2018, net loss was
    $147.0 million, or a loss of $22.59 per share.

About Gossamer Bio

Gossamer Bio is a clinical-stage biopharmaceutical company focused on
discovering, acquiring, developing and commercializing therapeutics in
the disease areas of immunology, inflammation and oncology. Its goal is
to be an industry leader in each of these therapeutic areas and to
enhance and extend the lives of patients suffering from such diseases.
More information can be found at www.gossamerbio.com.

Forward-Looking Statements

Gossamer cautions you that statements contained in this press release
regarding matters that are not historical facts are forward-looking
statements. These statements are based on the company’s current beliefs
and expectations. Such forward-looking statements include, but are not
limited to, statements regarding the anticipated timing to conduct an
interim analysis of and release topline data from the Phase 2b clinical
trial of GB001 in moderate-to-severe eosinophilic asthma; and plans to
rapidly advance other product candidates. The inclusion of
forward-looking statements should not be regarded as a representation by
Gossamer that any of its plans will be achieved. Actual results may
differ from those set forth in this press release due to the risks and
uncertainties inherent in Gossamer’s business, including, without
limitation: potential delays in the commencement, enrollment and
completion of clinical trials; the company’s dependence on third parties
in connection with product manufacturing, research and preclinical and
clinical testing; the success of Gossamer’s clinical trials and
preclinical studies for its product candidates; regulatory developments
in the United States and foreign countries; unexpected adverse side
effects or inadequate efficacy of the company’s product candidates that
may limit their development, regulatory approval and/or
commercialization, or may result in recalls or product liability claims;
Gossamer’s ability to obtain and maintain intellectual property
protection for its product candidates; Gossamer’s ability to comply with
its obligations in the agreements under which it licenses intellectual
property rights from third parties; and other risks described in the
company’s prior press releases and the company’s filings with the
Securities and Exchange Commission (SEC), including under the heading
“Risk Factors” in the company’s annual report on Form 10-K and any
subsequent filings with the SEC. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof, and Gossamer undertakes no obligation to update such
statements to reflect events that occur or circumstances that exist
after the date hereof. All forward-looking statements are qualified in
their entirety by this cautionary statement, which is made under the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995.

Years Ended December 31,
STATEMENTS OF OPERATIONS DATA: 2018 2017
Operating expenses:
Research and development $ 55,283 $ 891
In process research and development 49,659 5,500
General and administrative 44,051 262
Total operating expenses 148,993 6,653
Loss from operations (148,993 ) (6,653 )
Other income (expenses)
Interest income 1,720
Interest expense (12 ) (118 )
Other income (expense) 316
Total other income (expense), net 2,024 (118 )
Net loss $ (146,969 ) $ (6,771 )
Net loss per share, basic and diluted $ (22.59 ) $ (0.74 )
Weighted average common shares outstanding, basic and diluted 6,504,871 9,160,888

GOSSAMER BIO, INC.
CONDENSED CONSOLIDATED FINANCIAL
STATEMENT DATA
(UNAUDITED; IN THOUSANDS, EXCEPT SHARE AND PER
SHARE DATA)

December 31,
BALANCE SHEET DATA: 2018 2017
Cash, cash equivalents, and marketable securities $ 228,658 $ 315
Working capital 211,550 (821 )
Total assets 239,419 445
Total liabilities 21,121 7,307
Accumulated deficit (153,863 ) (6,894 )
Total stockholders deficit (120,069 ) (6,862 )

Contacts

Gossamer Bio:

For Investors:
Argot Partners
Kimberly
Minarovich
Tel 212.600.1902
[email protected]

For
Media:
Argot Partners
David Rosen
Tel 212.600.1902
[email protected]

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