Passage Bio sees $241,038 stock purchase by Lynx1 Capital

On December 27, Lynx1 Capital Management LP, a significant shareholder in Passage BIO, Inc. (NASDAQ:PASG), acquired 373,645 shares of the company's common stock. The shares were purchased at a weighted average price of $0.6451, with the transaction totaling approximately $241,038. The stock, currently trading at $0.57, sits below the purchase price, though InvestingPro analysis suggests the company is undervalued, with analysts setting price targets between $4 and $13.

The purchase was executed in multiple transactions, with prices ranging from $0.6426 to $0.65 per share. Following this acquisition, Lynx1 Capital Management LP now holds 9,256,953 shares indirectly through Lynx1 Master Fund LP. With a market capitalization of $39.4 million, the company maintains a strong liquidity position with a current ratio of 5.15 and more cash than debt on its balance sheet. InvestingPro subscribers can access 8 additional key insights about PASG's financial health and market position.

The filing notes that Weston Nichols, the sole member of Lynx1 Capital Management GP LLC, serves as the investment manager for Lynx1 Capital Management LP. Both the investment manager and Nichols disclaim beneficial ownership of the securities, except for any pecuniary interest they may have.

In other recent news, Passage Bio, Inc. has reported promising advancements in gene therapy for frontotemporal dementia. The company's gene therapy product, PBFT02, demonstrated encouraging preclinical and interim clinical data, showing potential as a treatment for frontotemporal dementia with GRN mutations. The therapy, which uses an AAV1 viral vector for intra-cisterna magna administration of a functional GRN gene, has shown to increase progranulin levels and alter the course of neurodegenerative diseases.

Additional recent developments include an estimated impairment cost between $3.5 million and $5.5 million, following a sublease agreement and corporate restructuring. Passage Bio has also out-licensed treatments for GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy to GEMMA Biotherapeutics, Inc., a deal that includes an upfront payment of $10 million and potential additional milestone payments.

Analysts at Canaccord Genuity maintained a Buy rating for Passage Bio, based on the positive interim data from the upliFT-D Phase 1/2 study. The company is currently reviewing options to regain compliance with Nasdaq's listing requirements after receiving a potential delisting notice.

Thomas Kassberg has been appointed as a Class I director and member of the Audit Committee, a move that adds extensive biotechnology experience to the company's leadership. Lastly, Passage Bio has received approval from the U.S. Food and Drug Administration to evaluate PBFT02 for frontotemporal dementia patients with C9orf72 gene mutations.

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