PHILADELPHIA, PA — Passage Bio, Inc. (Nasdaq: PASG) released its financial results for the second quarter ended June 30, 2024, along with significant business highlights.
CEO Will Chou emphasized the company’s progress. “This has been a pivotal quarter, marked by momentum in our upliFT-D trial, clarity on expanding PBFT02 into more neurodegenerative indications, and out-licensing our pediatric lysosomal storage disorder programs,” he said.
The company enrolled the first patient in Cohort 2 of the upliFT-D trial for frontotemporal dementia (FTD-GRN). This follows the Independent Data Monitoring Committee’s (IDMC) positive recommendation based on Cohort 1’s safety data. Updated safety and biomarker data from Cohort 1 will be presented at the ISFTD2024 conference in Amsterdam this September. The FDA has also approved expanding the trial to include patients with FTD-C9orf72, with dosing expected to start in the first half of 2025.
Passage Bio completed the out-licensing of its pediatric lysosomal storage disease programs to GEMMA Biotherapeutics. The agreement includes initial and milestone payments totaling up to $20 million, and potential future royalties up to $114 million. GEMMA Biotherapeutics now holds exclusive worldwide licenses to develop treatments for GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy.
Financially, Passage Bio reported cash, cash equivalents, and marketable securities of $91.8 million as of June 30, 2024. This is down from $151.5 million the previous year but is expected to fund operations through Q2 2026. R&D expenses for Q2 were $10.4 million, down from $17.3 million the same period in 2023. G&A expenses were $6.5 million, compared to $8.1 million in Q2 2023. The net loss for the quarter was $16.0 million, or $0.26 per share, an improvement from the $23.9 million loss, or $0.44 per share, a year earlier.
Buy, Sell, or Hold?
Passage Bio shows promise with its clinical advancements and strategic partnerships. However, financial constraints and ongoing trial expenses suggest a Hold rating. Investors should monitor upcoming trial results and strategic moves.
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