Passage Bio (PASG) AI Stock Analysis

• Market Cap: $20.83M
• Dividend Yield: N/A
• Average Volume (3M): 184.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: N/A
• EPS Growth: 42.39%
• Country: US
• Employees: 60
• Sector: Healthcare
• Sector Strength: 58
• Industry: Biotechnology
• EPS (TTM): -1.07
• Shares Outstanding: 62,148,273
• 10 Day Avg. Volume: 236,638
• 30 Day Avg. Volume: 184,794
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.67
• Price Target Upside: 1817.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Passage Bio's stock is challenged by significant financial hurdles, including lack of revenue and high cash burn, which are typical for biotech firms at this stage. The balance sheet offers some strength, but increasing leverage raises caution. Technical indicators suggest a bearish trend, and valuation metrics highlight the speculative nature of the stock. However, recent advancements in clinical trials and extended cash runway offer a glimpse of potential future growth if these developments lead to successful outcomes.

Positive Factors

Clinical Progress

The company's strategy to explore different dosing levels could enhance understanding of the drug's therapeutic window and improve its clinical viability.

Financial Stability

Restructuring efforts and a transition to an outsourced analytical testing model have extended the cash runway, providing financial stability until the first quarter of 2027.

Regulatory Progress

The plan to evaluate a lower dose could further improve the safety profile, and an alignment with the FDA on the potency assay is an encouraging step forward on the manufacturing end.

Negative Factors

Operational Challenges

A significant headcount reduction as part of restructuring may indicate underlying financial pressures.

Safety Concerns

A serious adverse event in the first patient of Cohort 2 led to a decision to reduce the dose by 50% for safety and regulatory reasons.

Passage Bio Business Overview & Revenue Model

Company Description

Passage Bio, Inc., a genetic medicines company, develops transformative therapies for central nervous system diseases. It develops PBGM01, which utilizes a proprietary, AAVhu68 capsid to deliver to the brain and peripheral tissues a functional GLB1 gene encoding lysosomal acid beta-galactosidase for infantile GM1; PBFT02, which utilizes an AAV1 capsid to deliver to the brain a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD-GRN; and PBKR03, which utilizes a proprietary, AAVhu68 capsid to deliver to the brain and peripheral tissues a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease. The company also develops PBML04 for the treatment of metachromatic leukodystrophy; PBAL05 for the treatment of amyotrophic lateral sclerosis; and PBCM06 for the treatment of Charcot-Marie-Tooth Type 2A. Passage Bio, Inc. has a strategic research collaboration with the Trustees of the University of Pennsylvania's Gene Therapy Program; and collaboration agreement, and a development services and clinical supply agreement with Catalent Maryland, Inc. The company was incorporated in 2017 and is headquartered in Philadelphia, Pennsylvania.

How the Company Makes Money

Passage 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. The balance sheet is relatively strong, but increasing leverage and persistent net losses pose risks that need careful management as the company develops its pipeline.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-3.72M	-3.68M	-1.54M	-800.00K
	EBIT
-70.40M	-108.39M	-138.39M	-185.73M	-112.90M
	EBITDA
-70.40M	-98.34M	-138.39M	-185.73M	-112.90M
	Net Income Common Stockholders
-64.77M	-102.06M	-136.86M	-191.50M	-111.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.76M	114.29M	189.61M	315.77M	304.82M
	Total Assets
102.41M	150.54M	243.55M	355.08M	328.01M
	Total Debt
25.48M	26.29M	27.11M	0.00	0.00
	Net Debt
-12.10M	4.58M	-7.49M	-128.97M	-135.00M
	Total Liabilities
41.15M	39.26M	42.18M	36.42M	23.29M
	Stockholders Equity
61.26M	111.28M	201.37M	318.66M	304.71M
Cash Flow		Free Cash Flow
-47.99M	-78.41M	-123.48M	-152.52M	-82.17M
	Operating Cash Flow
-47.96M	-78.26M	-118.21M	-126.88M	-80.52M
	Investing Cash Flow
54.95M	65.24M	25.20M	-45.81M	-172.11M
	Financing Cash Flow
8.87M	135.00K	-1.35K	166.66K	228.75M

Passage Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PASG, the sentiment is Neutral. The current price of 0.4 is above the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.41, and below the 200-day MA of 0.62, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 47.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PASG.

Passage Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
PASG	44 Neutral	$20.83M	―	-75.07%	―	―	42.39%
CGTX	41 Neutral	$27.63M	―	-157.19%	―	―	-0.38%
TPST	39 Underperform	$24.11M	―	-182.35%	―	―	-220.54%
GBIO	38 Underperform	$29.21M	―	-91.02%	―	236.92%	-0.57%
ANVS	35 Underperform	$31.37M	―	-3159.09%	―	―	68.75%
CMMB	33 Underperform	$26.78M	―	-91.76%	―	―	57.93%

Passage Bio Corporate Events

Passage Bio Reports 2024 Financial Results and Program Advances

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.