OrbiMed Advisors LLC, a significant shareholder in Passage BIO, Inc. (NASDAQ:PASG), has recently sold a portion of its holdings in the company. The transaction, which took place on September 19, 2024, involved the sale of 39,300 shares at a weighted average price of $0.71, with a total value exceeding $27,903.
The sale was conducted within a price range of $0.70 to $0.73 per share. Following the transaction, OrbiMed Advisors LLC continues to hold a substantial number of shares in Passage BIO, Inc., with 7,794,569 shares remaining in its possession.
The shares sold are associated with OrbiMed Private Investments VII, LP, for which OrbiMed Capital GP VII LLC acts as the general partner. OrbiMed Advisors, a registered investment adviser, manages the general partner through a management committee consisting of Carl L. Gordon, Sven H. Borho, and W. Carter Neild. Despite the management role, each member of the committee has disclaimed beneficial ownership of the shares, except to the extent of their pecuniary interest.
OrbiMed Advisors and OrbiMed Capital GP VII LLC have both indicated that, although they have voting and investment power over the shares held by OrbiMed Private Investments VII, LP, they disclaim beneficial ownership of the reported securities, except for any personal pecuniary interest they might have. This disclaimer also extends to the implications of such ownership under Section 16 of the Securities Exchange Act of 1934.
Investors and market watchers often pay close attention to insider transactions such as these, as they may provide insights into the perspectives of major stakeholders on the company's current valuation and future prospects. Passage BIO, Inc., which operates in the biotechnology sector, specializes in developing transformative genetic medicines for rare diseases.
In other recent news, Passage Bio Inc. has been maintaining a steady pace in its business operations and strategic efforts. The company has recently reported positive interim data from the upliFT-D Phase 1/2 study, as highlighted by Canaccord Genuity, which also maintained a Buy rating for the company's stock. In addition, the firm has out-licensed treatments for GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy to GEMMA Biotherapeutics, Inc. This deal includes an upfront payment of $10 million and potential additional payments tied to business milestones.
The company has also appointed Thomas Kassberg as a Class I director and member of the Audit Committee. Kassberg, who has extensive experience in the biotechnology field, was also granted non-incentive stock options as part of his compensation package. Passage Bio is also facing potential delisting from Nasdaq due to its share price falling below the minimum bid price requirement, and the company is currently evaluating options to regain compliance with Nasdaq's listing requirements.
Passage Bio has also received approval from the U.S. Food and Drug Administration to evaluate its gene therapy treatment, PBFT02, for frontotemporal dementia patients with C9orf72 gene mutations. Furthermore, the company has reported an estimated impairment cost between $3.5 million and $5.5 million, in line with its recent sublease agreement and corporate restructuring efforts. These are some of the recent developments in Passage Bio's ongoing efforts to address the unmet needs of the patient community.
InvestingPro Insights
As OrbiMed Advisors LLC adjusts its stake in Passage BIO, Inc. (NASDAQ:PASG), it's crucial to consider the financial health and market performance of the company. According to real-time data from InvestingPro, Passage BIO has a market capitalization of $39.53 million and has experienced a significant price decline over the past six months, with a 51.01% drop in share value. This suggests a bearish sentiment in the market, which could be a factor influencing OrbiMed's decision to sell a portion of its holdings.
InvestingPro Tips highlight that while Passage BIO holds more cash than debt, it is quickly burning through cash and has not been profitable over the last twelve months. Analysts do not anticipate the company will be profitable this year, which is reflected in the company's negative P/E ratio of -0.47. Additionally, the company's liquid assets exceed its short-term obligations, providing some financial flexibility in the near term.
For investors considering the implications of OrbiMed's sale, these financial metrics and additional tips available on InvestingPro, including an analysis of the company's weak gross profit margins and the fact that it does not pay a dividend, may offer valuable context. With a total of 9 InvestingPro Tips available, investors can gain a more comprehensive understanding of Passage BIO's financial position and future outlook by visiting https://www.investing.com/pro/PASG.
Finally, the fair value estimates for Passage BIO vary, with analyst targets suggesting a fair value of $7 USD, while InvestingPro's fair value estimate stands at $0.97 USD. This disparity in valuation could indicate differing views on the company's growth potential and the efficacy of its business strategy in the competitive biotechnology industry.
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