Topic: How To Invest

Q: Hi Pat. I see Gossamer Bio has launched an IPO. What are your thoughts on the stock? Thanks!

Article Excerpt

A: Gossamer Bio, $23.15, symbol GOSS on Nasdaq (Shares outstanding: 63.3 million; Market cap: $1.4 billion; www.gossamerbio.com), specializes in the development and commercialization of therapeutics for immunology, inflammation, and oncology diseases. The California-based company is run by former executives of Receptos, a biotech firm that was acquired by Celgene (symbol CELG on Nasdaq) for $7.2 billion in 2015. On February 7, 2019, Gossamer first sold shares to the public in an initial public offering (IPO) at $16 a share. It sold 17.3 million shares—3 million more than it originally intended. The shares have since risen over 35% to today’s price. The IPO valued the company at slightly more than $1 billion, making it one of two biotech “unicorns” to go public in the same week. Unicorns are private companies, financed by venture capital, that have reached market valuations of $1 billion or more, even though most have yet to become profitable. Aside from Gossamer, the other biotech unicorn launching that same week was…

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