Shares plunged 10.5% to $0.14 on September 10 as Gossamer Bio executed one of the most aggressive reverse stock splits in recent biotech memory — an 80-to-1 consolidation designed to save its Nasdaq listing. The reverse stock split is intended to help the company regain compliance with the minimum bid price requirement for continued listing on the Nasdaq Global Select Market.
The split becomes effective tonight at 11:59 p.m. Eastern, with adjusted shares trading under the same "GOSS" ticker beginning September 11.
An 80-to-1 Ratio Signals Just How Far the Stock Has Fallen
Gossamer IPO'd in February 2019 at $16.00 per share. At today's $0.14, the stock has lost more than 99% of its value. With roughly 489 million shares outstanding , the split will collapse that to approximately 6.1 million shares and mechanically lift the price to around $11.20 — well above Nasdaq's $1.00 minimum. But history shows reverse splits in sub-dollar biotechs rarely hold; the sell-off today suggests investors already expect post-split erosion.
$57 Million in Cash, One Shot at FDA Approval
The company reported approximately $57 million in cash as of June 30, 2026 , with less than one year of cash runway based on current spending. Everything hinges on its sole drug candidate — an inhaled treatment for pulmonary arterial hypertension, a serious lung disease. Gossamer plans to submit the drug's application to the FDA this month, with a potential approval decision in Q3 2027.
Debt Restructuring Bought Time, but Dilution Has Been Massive
Earlier this year, Gossamer swapped roughly $181 million of convertible debt for $65.2 million in new, higher-rate secured notes plus equity and warrants , diluting shareholders by 115% in the past year.
A new $250 million private placement — with $125 million contingent on FDA acceptance of the drug application — could dilute holders further on a now much-smaller share base post-split.
The Bottom Line: Listing Saved, But the Real Test Is Clinical
The reverse split is a survival move, not a growth signal. Even Gossamer acknowledges the split "may not result in a sustained increase in the price" of its stock. With a ~$68 million market cap, dwindling cash, and an all-or-nothing FDA bet, the split merely keeps GOSS on the exchange long enough to find out whether its only drug works.