Passage Bio (PASG) AI Stock Analysis

• Market Cap: $21.75M
• Dividend Yield: N/A
• Average Volume (3M): 29.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: N/A
• EPS Growth: 32.57%
• Country: US
• Employees: 60
• Sector: Healthcare
• Sector Strength: 51
• Industry: Biotechnology
• EPS (TTM): -2.96
• Shares Outstanding: 3,120,295
• 10 Day Avg. Volume: 23,322
• 30 Day Avg. Volume: 29,785
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.35
• Enterprise Value/Revenue: -2.34
• Enterprise Value/Gross Profit: -18.58
• Enterprise Value/Ebitda: 0.14
• 1Y Price Target: $59.25
• Price Target Upside: 746.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 44 Neutral
• 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

Program Advancements

The progress in the PBFT02 program indicates strong R&D capabilities and potential future revenue from successful therapies, enhancing long-term growth prospects.

Extended Cash Runway

The extended cash runway provides financial stability, allowing Passage Bio to focus on R&D and clinical trials without immediate funding pressures, supporting sustainable operations.

Outsourced Analytical Testing

Outsourcing analytical testing reduces costs and increases operational efficiency, enabling the company to allocate more resources to core R&D activities and strategic initiatives.

Negative Factors

No Revenue Generation

The lack of revenue generation poses a risk to financial sustainability, as the company relies heavily on external funding and partnerships to support its operations.

Significant Cash Burn

Persistent cash burn can deplete financial resources, necessitating additional funding rounds, which may dilute existing shareholders and impact long-term financial health.

Increasing Leverage

Rising leverage increases financial risk, potentially constraining future borrowing capacity and impacting the company's ability to invest in growth opportunities.

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. 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.21M	0.00	0.00	0.00	0.00	0.00
Gross Profit	405.00K	-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 Assets	79.20M	102.41M	150.54M	243.55M	355.08M	328.01M
Cash, Cash Equivalents and Short-Term Investments	57.63M	76.76M	114.29M	189.61M	315.77M	304.82M
Total Debt	24.73M	25.48M	26.29M	27.11M	0.00	0.00
Total Liabilities	40.94M	41.15M	39.26M	42.18M	36.42M	23.29M
Stockholders Equity	38.26M	61.26M	111.28M	201.37M	318.66M	304.71M
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 Flow	68.86M	54.95M	65.24M	25.20M	-45.81M	-172.11M
Financing Cash Flow	61.00K	8.87M	135.00K	-1.35M	166.66M	228.75M

Passage Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 7 is below the 20-day moving average (MA) of 7.13, above the 50-day MA of 6.79, and below the 200-day MA of 9.17, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 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 *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
GBIO	50 Neutral	$40.48M	―	-85.45%	―	61.15%	54.71%
PASG	44 Neutral	$21.75M	―	-88.27%	―	―	32.57%
CGTX	41 Neutral	$208.21M	―	-219.68%	―	―	29.58%
TPST	39 Underperform	$47.55M	―	-322.57%	―	―	3.39%
ANVS	35 Underperform	$46.57M	―	-365.03%	―	―	54.85%
CMMB	33 Underperform	$15.78M	―	-120.76%	―	―	47.86%

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.