Gossamer Bio To Buy Respira Therapeutics And Its Lead Product Candidate RT234, Stock Down

(RTTNews) - Gossamer Bio, Inc. (GOSS), Thursday announced an option agreement to acquire Respira Therapeutics and its lead product candidate, RT234, an investigational inhaled vardenafil dry-powder therapy for pulmonary hypertension.

The deal is anticipated to expand the company's pulmonary hypertension franchise, and strengthen its engagement with pulmonary hypertension clinicians and patients.

As per the terms of the deal, the clinical biopharmaceutical company will issue 2.5 million shares in connection with signing with an additional 1.5 million shares due upon exercise of the option.

Additionally, current and former shareholders of Respira will be eligible for certain success-based clinical, regulatory, and commercial milestone payments and a high single-digit royalty on potential net sales of RT234.

During the option period, Gossamer will fund certain pre-agreed development expenses for upto approximately 2 years, the company added.

In the pre-market hours, GOSS is moving down 3.01 percent, to $2.9 on the Nasdaq.