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Passage Bio (PASG)
NASDAQ:PASG
US Market
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Passage Bio (PASG) AI Stock Analysis

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PASG

Passage Bio

(NASDAQ:PASG)

Rating:44Neutral
Price Target:
Passage Bio scores moderately low due to its financial challenges, including no revenue and significant cash burn. However, a strong balance sheet and recent corporate event announcements, including program advancements and extended cash runway, provide some optimism. Technical indicators suggest a neutral to bearish sentiment, and traditional valuation metrics are limited due to the company's stage and lack of profitability.
Positive Factors
Biological Rationale
The sustained elevation of PGRN expression in the CSF and blunted NfL elevations continue to support the underlying biological rationale for PBFT02, keeping the program viable if safety concerns can be mitigated.
Regulatory Progress
Both the Independent Data Monitoring Committee and the FDA have agreed that the next patient can be dosed as planned with additional safety monitoring.
Therapeutic Potential
The prevention of neurodegeneration is suggested by a smaller increase in plasma NfL levels in treated patients compared to untreated patients.
Negative Factors
Market Reaction
PASG shares showed negative reaction to the clinical update from the Ph1/2 study of PBFT02 in frontotemporal dementia (FTD).
Safety Concerns
The emergence of a new SAE (pulmonary embolism) in Patient 8 following treatment with Dose 2 has raised safety concerns.
Valuation Impact
The risk-adjusted valuation of PBFT02 decreased significantly from ~$1B to $283M, impacting the overall valuation.

Passage Bio (PASG) vs. SPDR S&P 500 ETF (SPY)

Passage Bio Business Overview & Revenue Model

Company DescriptionPassage Bio (PASG) is a biotechnology company focused on developing transformative therapies for rare monogenic central nervous system (CNS) disorders. The company specializes in gene therapies, utilizing cutting-edge technologies to address unmet medical needs in neurology. With a robust pipeline of therapies in various stages of development, Passage Bio aims to deliver precision medicine solutions to patients with debilitating genetic conditions.
How the Company Makes MoneyPassage Bio primarily generates revenue through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These collaborations often involve upfront payments, milestone payments based on the achievement of clinical and regulatory milestones, and royalties on future product sales. The company may also receive government grants and research funding to support its R&D initiatives. Passage Bio's focus on developing gene therapies for rare CNS disorders allows it to target markets with high unmet medical needs, potentially leading to premium pricing for successful therapies. As its products progress through clinical trials and potentially reach commercialization, the company aims to generate revenue from sales of its approved therapies.

Passage Bio Financial Statement Overview

Summary
Passage Bio faces common challenges in the biotech industry, with no revenue and significant cash burn. While the balance sheet shows a reasonable equity base, increasing leverage and persistent net losses pose risks that need careful management as the company develops its pipeline.
Income Statement
15
Very Negative
Passage Bio has not generated any revenue over the past years, which is typical for early-stage biotechnology companies. However, the consistent and significant net losses and negative EBIT margins highlight ongoing financial challenges in achieving profitability.
Balance Sheet
60
Neutral
The company's balance sheet shows a reasonable equity base with an Equity Ratio of approximately 60%. However, the Debt-to-Equity ratio is increasing, indicating rising leverage, which may pose a risk if cash reserves decline further.
Cash Flow
40
Negative
Operating cash flow is consistently negative, reflecting significant cash burn typical of biotech firms in development stages. Free cash flow is also negative, although financing activities have bolstered cash positions, providing some liquidity strength.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.21M0.000.000.000.000.00
Gross Profit405.00K-3.08M-3.72M-3.68M-1.54M-800.00K
EBITDA-52.65M-61.69M-98.34M-132.45M-183.84M-111.43M
Net Income-56.85M-64.77M-102.06M-136.13M-185.39M-112.23M
Balance Sheet
Total Assets79.20M102.41M150.54M243.55M355.08M328.01M
Cash, Cash Equivalents and Short-Term Investments57.63M76.76M114.29M189.61M315.77M304.82M
Total Debt24.73M25.48M26.29M27.11M0.000.00
Total Liabilities40.94M41.15M39.26M42.18M36.42M23.29M
Stockholders Equity38.26M61.26M111.28M201.37M318.66M304.71M
Cash Flow
Free Cash Flow-36.10M-47.99M-78.41M-123.48M-152.52M-82.17M
Operating Cash Flow-36.07M-47.96M-78.26M-118.21M-126.88M-80.52M
Investing Cash Flow68.86M54.95M65.24M25.20M-45.81M-172.11M
Financing Cash Flow61.00K8.87M135.00K-1.35M166.66M228.75M

Passage Bio Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.54
Price Trends
50DMA
6.91
Positive
100DMA
7.09
Positive
200DMA
9.49
Negative
Market Momentum
MACD
0.20
Negative
RSI
56.70
Neutral
STOCH
90.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PASG, the sentiment is Positive. The current price of 7.54 is above the 20-day moving average (MA) of 6.50, above the 50-day MA of 6.91, and below the 200-day MA of 9.49, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 56.70 is Neutral, neither overbought nor oversold. The STOCH value of 90.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PASG.

Passage Bio Risk Analysis

Passage Bio disclosed 79 risk factors in its most recent earnings report. Passage Bio reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Passage Bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.88B-0.12-39.86%2.18%21.38%-1.56%
50
Neutral
$43.44M-85.45%61.15%54.71%
44
Neutral
$23.09M-88.27%32.57%
41
Neutral
$146.21M-219.68%29.58%
39
Underperform
$44.51M-322.57%3.39%
35
Underperform
$46.38M-365.03%54.85%
33
Underperform
$18.42M-120.76%47.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PASG
Passage Bio
7.54
-8.86
-54.02%
TPST
Tempest Therapeutics
10.02
-8.44
-45.72%
CMMB
Chemomab Therapeutics
0.89
-0.69
-43.67%
ANVS
Annovis Bio
2.37
-7.30
-75.49%
GBIO
Generation Bio
6.45
-21.25
-76.71%
CGTX
Cognition Therapeutics
2.81
2.11
301.43%

Passage Bio Corporate Events

Business Operations and StrategyFinancial Disclosures
Passage Bio Reports 2024 Financial Results and Program Advances
Positive
Mar 4, 2025

On March 4, 2025, Passage Bio reported its financial results for the fourth quarter and full year 2024, highlighting significant advancements in its PBFT02 program for FTD-GRN patients. The company demonstrated promising interim data showing durable progranulin expression and early biomarker improvements, and it plans to expand its clinical trials to include FTD patients with C9orf72 gene mutations. Passage Bio also extended its cash runway into the first quarter of 2027 by adopting an outsourced analytical testing model and reducing operating expenses, positioning itself well for late-stage development and regulatory engagement.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025