OrbiMed Advisors LLC, a 10% owner in Passage BIO, Inc. (NASDAQ:PASG), recently disclosed the sale of 230,321 shares of the company's common stock. The transaction, which took place on December 20, 2024, was executed at a price of $0.60 per share, amounting to a total of $138,192. The sale occurred as the clinical-stage genetic medicines company, currently valued at approximately $40 million, faces challenging market conditions. According to InvestingPro analysis, while the company maintains a strong liquidity position with a current ratio of 5.15, it is rapidly burning through its cash reserves.
Following the sale, OrbiMed Advisors LLC retains ownership of 7,404,869 shares in Passage BIO. The shares are held indirectly through OrbiMed Private Investments VII, LP, with OrbiMed Advisors acting as the managing member of the general partner, OrbiMed Capital GP VII LLC. The investment and voting power over these shares are exercised by a management committee comprising Carl L. Gordon, Sven H. Borho, and W. Carter Neild, each of whom disclaims beneficial ownership of the shares. InvestingPro subscribers can access 7 additional key insights about Passage BIO's financial health and market position.
In other recent news, Passage Bio, Inc. has been making significant strides in gene therapy for dementia. The company's lead product, PBFT02, has shown promising preclinical and interim clinical data, demonstrating potential as a treatment for frontotemporal dementia with GRN mutations. The data revealed that PBFT02 improved histopathology and reduced neuroinflammation, key factors in dementia pathology. Furthermore, Passage Bio has out-licensed treatments for GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy to GEMMA Biotherapeutics, Inc., a deal that includes an upfront payment of $10 million with potential additional payments tied to business milestones.
Analysts at Canaccord Genuity maintained a Buy rating for Passage Bio, reflecting positive interim data from the upliFT-D Phase 1/2 study. The company is also currently evaluating options to regain compliance with Nasdaq's listing requirements following a potential delisting notice due to its share price falling below the minimum bid price requirement. Passage Bio has appointed Thomas Kassberg as a Class I director and member of the Audit Committee, granting him non-incentive stock options as part of his compensation package. Lastly, the company has received approval from the U.S. Food and Drug Administration to evaluate PBFT02 for frontotemporal dementia patients with C9orf72 gene mutations. These are the recent developments in Passage Bio's ongoing efforts.
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