Gossamer Bio(GOSS) - 2021 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (unaudited) Gossamer Bio reported a Q1 2021 net loss of $57.6 million, with total assets at $482.5 million and an accumulated deficit of $635.2 million Condensed Consolidated Balance Sheets Total assets decreased to $482.5 million as of March 31, 2021, from $539.4 million, driven by reduced cash Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $439,659 | $486,055 | | Total current assets | $465,847 | $522,322 | | Total assets | $482,469 | $539,433 | | Liabilities & Equity | | | | Total current liabilities | $29,444 | $38,650 | | Long-term convertible senior notes | $145,168 | $143,642 | | Total liabilities | $210,385 | $218,749 | | Accumulated deficit | ($635,171) | ($577,530) | | Total stockholders' equity | $272,084 | $320,684 | Condensed Consolidated Statements of Operations and Comprehensive Loss Net loss increased to $57.6 million in Q1 2021 from $54.1 million in Q1 2020, driven by higher interest expense Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Research and development | $41,827 | $41,414 | | General and administrative | $11,346 | $10,748 | | Total operating expenses | $53,203 | $54,967 | | Loss from operations | ($53,203) | ($54,967) | | Interest expense | ($4,780) | ($707) | | Net loss | ($57,641) | ($54,074) | | Net loss per share, basic and diluted | ($0.78) | ($0.87) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities increased to $58.9 million in Q1 2021, resulting in a $46.2 million cash decrease Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($58,896) | ($52,295) | | Net cash provided by investing activities | $11,968 | $28,038 | | Net cash provided by financing activities | $774 | $571 | | Net decrease in cash, cash equivalents and restricted cash | ($46,154) | ($23,686) | | Cash, cash equivalents and restricted cash, at end of period | $440,224 | $111,353 | Notes to Unaudited Condensed Consolidated Financial Statements Notes detail the company's biopharmaceutical focus, $635.2 million accumulated deficit, COVID-19 impact, and debt instruments - The company is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing therapeutics in immunology, inflammation and oncology[21] - As of March 31, 2021, the company had an accumulated deficit of $635.2 million and has funded operations primarily through equity and debt financings totaling $942.0 million since October 2017[23] - The COVID-19 pandemic poses a risk of delays in clinical trial enrollment and data reporting for key programs like GB004 (ulcerative colitis) and seralutinib (PAH)[25] - The company has a Credit Facility for up to $150.0 million, with $30.0 million drawn as of March 31, 2021, and issued $200.0 million in 5.00% Convertible Senior Notes due 2027 in May 2020[45][52] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses advancing clinical pipeline, with topline results for seralutinib and GB004 expected in H1 2022, and sufficient cash into H2 2023 - The company is advancing four clinical-stage product candidates, with topline results for seralutinib (PAH) and GB004 (ulcerative colitis) expected in the first half of 2022[99] - The company does not plan to move forward with further clinical trials for its asthma candidate, GB001, without a partner after it failed to meet its primary endpoint in a Phase 2 trial[99] R&D Expenses by Program (in thousands) | Program | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Seralutinib | $10,667 | $7,554 | | GB004 | $8,858 | $3,739 | | GB1275 | $2,832 | $4,345 | | GB001 | $1,268 | $11,376 | | Other Programs | $18,202 | $14,400 | | Total R&D | $41,827 | $41,414 | - The company believes its existing cash, cash equivalents, and marketable securities of $453.3 million will be sufficient to fund operations into the second half of 2023[126][137] PART II. OTHER INFORMATION Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes to market risk exposures, including interest rate, foreign currency, and inflation risks, were reported since the 2020 10-K - There have been no material changes to the company's market risk factors since its 2020 Annual Report on Form 10-K[140] Item 4. Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls - Disclosure controls and procedures were effective as of March 31, 2021, based on management's evaluation[142] - No material changes in internal control over financial reporting occurred during the quarter[143] Other Items (Items 1, 1A, 2, 5, 6) This section covers legal proceedings, risk factors, and IPO proceeds, noting a class-action lawsuit dismissal and $148.1 million IPO proceeds used - The company is defending a class action lawsuit related to its February 2019 IPO, with a motion to dismiss substantially granted on April 19, 2021[95][146] - No material changes to risk factors were reported since the 2020 Annual Report on Form 10-K[147] - Approximately $148.1 million of the $291.3 million net proceeds from the February 2019 IPO have been used for general corporate purposes as of March 31, 2021[149][150]