Figma Shares Indicated To Open $105/$110
PHILADELPHIA - Passage Bio, Inc. (NASDAQ:PASG) announced Thursday that its Board of Directors has approved a 1-for-20 reverse stock split effective July 14, 2025, in an effort to regain compliance with Nasdaq’s minimum bid price requirement of $1.00 per share. The company, currently trading at $0.44 with a market capitalization of $27.4 million, has seen its stock decline over 46% in the past year, according to InvestingPro data.
The genetic medicines company, which focuses on neurodegenerative diseases, will continue trading under its existing symbol PASG but with a new CUSIP number. The split was approved by stockholders at the company’s annual meeting on May 28. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 3.74, though it faces challenges with rapid cash burn.
The reverse split will reduce Passage Bio’s outstanding common shares from approximately 62.4 million to about 3.1 million. Proportionate adjustments will be made to the company’s equity awards, while the number of authorized shares and par value per share will remain unchanged.
Registered stockholders holding shares electronically in book-entry form are not required to take any action, and those holding shares in brokerage accounts will have their positions automatically adjusted. Stockholders who would otherwise receive fractional shares will have their holdings rounded up to the nearest whole share.
The company stated in a press release that the split will affect all stockholders uniformly and would not affect percentage ownership interests, except in cases involving fractional shares.
Passage Bio’s lead product candidate, PBFT02, aims to treat neurodegenerative conditions including frontotemporal dementia by elevating progranulin levels to restore lysosomal function and slow disease progression. With analysts maintaining a "Strong Buy" consensus and InvestingPro reporting multiple additional insights on the company’s financial health and market position, investors can access comprehensive analysis to make informed decisions about this developing story.
In other recent news, Passage Bio, Inc. reported updated interim data from its Phase 1/2 upliFT-D clinical trial for the gene therapy PBFT02, aimed at treating frontotemporal dementia (FTD) with granulin mutations. The results showed that patients receiving the higher dose of PBFT02 maintained elevated cerebrospinal fluid progranulin levels for 18 months post-treatment. Additionally, the first patient treated with a lower dose exhibited significant increases in cerebrospinal fluid progranulin at one month. Patients on the higher dose also demonstrated a 4% average increase in plasma neurofilament light chain levels at 12 months, compared to the expected 28-29% increase in untreated patients. On the safety side, three out of eight patients experienced serious adverse events, prompting the company to plan amendments to the trial protocol. These amendments include prophylactic low-dose anticoagulation and changes to inclusion criteria to study patients earlier in the disease progression. Passage Bio aims to submit the amended protocol to health authorities by July 2025, with additional cohort enrollment following approval. The company is also on track to seek regulatory feedback for a registrational trial design in the first half of 2026.
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