Optimistic Buy Rating for Passage Bio’s PBFT02: Promising Efficacy and Managed Safety Concerns

In a report released on June 25, Yun Zhong from Wedbush maintained a Buy rating on Passage Bio (PASG – Research Report), with a price target of $3.00.

Yun Zhong has given his Buy rating due to a combination of factors that highlight the potential of Passage Bio’s PBFT02 therapy for frontotemporal dementia (FTD). Despite initial concerns regarding a serious adverse event (SAE) of pulmonary embolism in the first patient receiving Dose 2, Zhong believes these worries are exaggerated. The company plans to implement a short course of low-dose prophylactic anticoagulation, which is expected to mitigate such risks effectively. Additionally, both the Independent Data Monitoring Committee and the FDA have permitted the continuation of dosing with enhanced safety monitoring, indicating confidence in the treatment’s safety profile.
Moreover, the clinical data from the first Dose 2 patient showed promising results, with cerebrospinal fluid PGRN levels nearing the upper limit of the healthy adult reference range within 30 days. This suggests a potential for continued improvement, as seen in previous patients. The observed stabilization of CSF PGRN expression levels over 12 months and the prevention of neurodegeneration, as indicated by plasma NfL levels, further support the therapy’s efficacy. These factors, combined with the planned protocol amendments and inclusion criteria changes, position PBFT02 as a promising candidate for regulatory discussions and future development.

Zhong covers the Healthcare sector, focusing on stocks such as MannKind, Rocket Pharmaceuticals, and Keros Therapeutics. According to TipRanks, Zhong has an average return of -18.8% and a 34.47% success rate on recommended stocks.

In another report released on June 24, Chardan Capital also maintained a Buy rating on the stock with a $6.00 price target.