OrbiMed Advisors Sells Over $27K Worth of Shares in Passage BIO

OrbiMed Advisors LLC, a prominent shareholder in Passage BIO, Inc. (NASDAQ:PASG), has recently divested a portion of its investment in the company. On September 19, 2024, OrbiMed sold 39,300 shares at an average price of $0.71, with a total transaction value exceeding $27,903.

The sale occurred within a price range of $0.70 to $0.73 per share, and despite this reduction, OrbiMed Advisors LLC still retains a significant number of shares in Passage BIO, Inc., holding 7,794,569 shares post-transaction.

The shares sold are affiliated with OrbiMed Private Investments VII, LP, for which OrbiMed Capital GP VII LLC serves as the general partner. OrbiMed Advisors, a registered investment adviser, manages the general partner through a committee that includes Carl L. Gordon, Sven H. Borho, and W. Carter Neild. However, each committee member has disclaimed beneficial ownership of the shares, except where they have a personal financial interest.

Both OrbiMed Advisors and OrbiMed Capital GP VII LLC have stated that while they possess voting and investment powers over the shares of OrbiMed Private Investments VII, LP, they disclaim beneficial ownership of the reported securities, with the exception of any personal financial interests. This disclaimer extends to the responsibilities outlined under Section 16 of the Securities Exchange Act of 1934.

Insider transactions like this one are closely monitored by investors and market analysts as they can provide insights into the opinions of major stakeholders regarding the company’s valuation and future outlook. Passage BIO, Inc. operates within the biotechnology sector, focusing on developing innovative genetic therapies for rare diseases.

In other developments, Passage BIO Inc. continues to progress with its operational and strategic initiatives. The company has announced promising interim results from the upliFT-D Phase 1/2 study, leading to a maintained Buy rating from Canaccord Genuity. Moreover, the firm has out-licensed treatments for conditions including GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy to GEMMA Biotherapeutics, Inc., which includes an upfront fee of $10 million along with potential milestone payments.

Recently, the company appointed Thomas Kassberg as a Class I director and a member of the Audit Committee. Kassberg brings extensive biotechnology experience and has been awarded non-incentive stock options as part of his compensation. Additionally, Passage Bio is assessing options to address a potential delisting from Nasdaq due to its share price dropping below the minimum required bid price.

The U.S. Food and Drug Administration has approved the investigation of PBFT02, their gene therapy targeting frontotemporal dementia for patients with C9orf72 gene mutations. The company has also reported an anticipated impairment cost ranging from $3.5 million to $5.5 million in connection with a recent sublease agreement and corporate restructuring efforts.

As OrbiMed Advisors adjusts its stake in Passage BIO, it’s essential to evaluate the company’s financial health and market performance. Currently, Passage BIO has a market capitalization of $39.53 million and has experienced a substantial decline in stock price over the last six months, dropping by 51.01%. This downward trend may have influenced OrbiMed’s decision to sell part of its shares.

Although Passage BIO has more cash than debt, it is rapidly depleting its cash reserves and has not reported profit over the past year. Analysts do not forecast any profitability in the current year, as indicated by a negative price-to-earnings ratio of -0.47. Nevertheless, the company’s liquid assets are greater than its short-term liabilities, providing some financial flexibility in the immediate future.

For investors contemplating the ramifications of OrbiMed’s sale, these financial details and broader market analysis may provide significant insight into Passage BIO’s financial status and outlook.

Lastly, fair value estimates for Passage BIO vary widely. Analysts suggest a fair value of $7 USD, while alternate estimates place it at $0.97 USD. This gap in evaluations may reflect differing opinions on the company’s growth potential and the effectiveness of its strategies in the competitive biotechnology landscape.

This article was generated with AI assistance and reviewed by an editor.