OrbiMed Advisors LLC, a significant stakeholder in Passage BIO, Inc. (NASDAQ:PASG), recently executed stock sales amounting to $77,338 in the $47.89 million market cap company. The transactions, which came amid a sharp 31% decline in share price over the past week, were disclosed in a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the stock appears undervalued despite recent volatility.
On December 4, OrbiMed sold 76,200 shares at a weighted average price of $0.79 per share, with the sale prices ranging from $0.75 to $0.82. Following this transaction, OrbiMed retained ownership of 7,718,369 shares.
A subsequent sale occurred on December 6, involving 20,903 shares at an average price of $0.82 per share, within a price range from $0.81 to $0.83. After this sale, OrbiMed's holdings in Passage BIO were reduced to 7,697,466 shares.
The shares are held by OrbiMed Private Investments VII, LP, with OrbiMed Capital GP VII LLC and OrbiMed Advisors LLC potentially sharing voting and investment power, as per their management structure. However, both entities disclaim beneficial ownership except to the extent of their pecuniary interest.
In other recent news, Passage Bio, Inc. has made significant strides in gene therapy for dementia, specifically frontotemporal dementia. The company's product, PBFT02, has shown promise in preclinical and interim clinical data, with an increase in progranulin levels in the cerebrospinal fluid and broad distribution throughout the nervous system. The therapy has also been well-tolerated in the upliFT-D Phase 1/2 study, leading to consistent and durable increases in progranulin levels.
In a strategic move, Passage Bio has out-licensed treatments for GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy to GEMMA Biotherapeutics, Inc. This deal includes an upfront payment of $10 million and potential additional payments tied to business milestones. In addition, Passage Bio has reported an estimated impairment cost between $3.5 million and $5.5 million, aligning with its recent sublease agreement and corporate restructuring efforts.
Canaccord Genuity maintained a Buy rating for Passage Bio, based on positive interim data from the upliFT-D Phase 1/2 study. However, the company is currently evaluating options to regain compliance with Nasdaq's listing requirements, following a potential delisting notice due to its share price falling below the minimum bid price requirement.
Passage Bio has appointed Thomas Kassberg as a Class I director and member of the Audit Committee. Kassberg, with an extensive background in biotechnology, was granted non-incentive stock options as part of his compensation package. Finally, Passage Bio has received approval from the U.S. Food and Drug Administration to evaluate its gene therapy treatment, PBFT02, for frontotemporal dementia patients with C9orf72 gene mutations. These are the recent developments in Passage Bio's ongoing efforts.
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