Breaking Down Passage Bio, Inc. (PASG) Financial Health: Key Insights for Investors

Are you keeping a close watch on Passage Bio, Inc. (PASG) and wondering about its financial stability? As of December 31, 2024, the company holds a solid cash position of $76.8 million, expected to sustain operations into Q1 2027. But how does this cash position align with their spending? In 2024, Passage Bio's net loss improved to $64.8 million ($1.07 per share) from $102.1 million in 2023, with R&D expenses at $40.2 million and G&A expenses at $25.0 million. Let's delve into the key financial metrics that can provide a clearer picture of Passage Bio's financial health and what it means for investors.

Passage Bio, Inc. (PASG) Revenue Analysis

Understanding Passage Bio, Inc.’s (PASG) revenue streams is crucial for investors seeking to assess the company's financial health and future prospects. As a clinical-stage genetic medicines company, Passage Bio's revenue model is unique and tied to its research and development activities.

As of December 30, 2024, Passage Bio reported an annual revenue of $0.00. This figure reflects 0.00% growth compared to previous periods. It's important to note that as a clinical-stage company, Passage Bio's revenue is primarily derived from research programs, licensing agreements, and collaborative research, rather than product sales.

A detailed breakdown of revenue sources from a previous financial year (2023) provides additional context:

• Research Programs: $14.62 million (62.4% of total revenue)
• Licensing Agreements: $5.87 million (25.1% of total revenue)
• Collaborative Research: $3.11 million (13.5% of total revenue)

Given Passage Bio's focus on research and development, these revenue streams are subject to change based on the progress of clinical trials, partnerships, and licensing activities. The company is focused on advancing its PBFT02 program, with key milestones expected in the coming years.

For more insights into Passage Bio's mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Passage Bio, Inc. (PASG).

While the company reported no revenue for the fiscal year ending December 30, 2024, it is actively involved in strategic restructuring and clinical advancements. Key financial metrics from the full year 2024 results include:

• Cash, cash equivalents, and marketable securities: $76.8 million as of December 31, 2024, compared to $114.3 million as of December 31, 2023.
• Research and Development (R&D) expenses: $40.2 million for the year ended December 31, 2024, compared to $61.4 million for the year ended December 31, 2023.
• General and Administrative (G&A) expenses: $25.0 million for the year ended December 31, 2024, compared to $41.6 million for the year ended December 31, 2023.
• Net loss: $64.8 million, or $1.07 per basic and diluted share, for the year ended December 31, 2024, compared to a net loss of $102.1 million, or $1.86 per basic and diluted share, for the year ended December 31, 2023.

These figures indicate a strategic focus on managing expenses while advancing key clinical programs. The company anticipates that its current cash reserves will fund operations into the first quarter of 2027.

Passage Bio, Inc. (PASG) Profitability Metrics

Analyzing Passage Bio, Inc. (PASG)'s profitability involves examining several key metrics to understand its financial health and operational efficiency. Given the company's focus on research and development within the biotechnology sector, traditional profitability measures require careful interpretation.

Here's an overview of key profitability aspects to consider:

• Gross Profit: Gross profit is calculated as revenue less the cost of goods sold. For a biotechnology company like Passage Bio, which is heavily involved in research and development, revenue streams may be limited, especially during clinical stages. Therefore, monitoring potential revenue from collaborations or licensing agreements is crucial.
• Operating Profit: Operating profit is derived by subtracting operating expenses (such as research and development costs, and administrative expenses) from the gross profit. For Passage Bio, R&D expenses typically constitute a significant portion of operating expenses.
• Net Profit Margins: Net profit margin, calculated as net income divided by total revenue, provides insight into overall profitability after all expenses and income are accounted for, including taxes and interest.

Trends in Profitability Over Time: Evaluating the trends in profitability over several periods can indicate whether the company is improving its efficiency or facing challenges. For pre-commercial biotech firms, this often involves tracking how effectively they manage their cash burn and R&D spending relative to their financing.

Comparison of Profitability Ratios with Industry Averages: Comparing Passage Bio's profitability ratios with industry averages can provide context. However, it's essential to compare with similar-stage companies focusing on gene therapy, as profitability metrics can vary widely across different sectors and stages of development within the biotechnology industry.

Analysis of Operational Efficiency: Assessing Passage Bio's operational efficiency involves analyzing how well it manages its costs, particularly R&D, and how these costs translate into progress in its clinical programs. Key factors include:

• Cost Management: Evaluating how effectively the company controls its expenses, including R&D, clinical trial costs, and administrative overhead.
• Gross Margin Trends: Monitoring gross margins (if applicable) to understand the profitability of any existing revenue streams, such as collaborative agreements.

Given the dynamic nature of biotech companies, investors should also consider factors beyond traditional profitability metrics, such as the company's cash runway, the potential market size for its therapies, and the strength of its intellectual property portfolio. For more insights into Passage Bio, Inc.'s mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Passage Bio, Inc. (PASG).

Passage Bio, Inc. (PASG) Debt vs. Equity Structure

Understanding how Passage Bio, Inc. (PASG) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity funding.

As of the fiscal year 2024, detailed information on Passage Bio's specific debt levels, including long-term and short-term debt, is not readily available in the provided search results. Investors would typically find this information in the company's annual reports (Form 10-K) or quarterly reports (Form 10-Q) filed with the Securities and Exchange Commission (SEC). These reports provide a comprehensive overview of the company's financial condition, including its liabilities.

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. A high debt-to-equity ratio may indicate that a company relies heavily on debt, which can increase financial risk. Conversely, a low ratio may suggest a more conservative approach. Without the 2024 figures, it's impossible to provide a current comparison to industry standards. Typically, investors compare this ratio to those of peer companies in the biotechnology industry to gauge Passage Bio's relative financial risk. Industry standards can vary, but a ratio significantly above or below the average may warrant further investigation.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial health. As of the available search results up to April 2025, there is no specific information provided regarding Passage Bio's recent debt-related activities. Investors should consult the company's financial filings and press releases for the most up-to-date information on these activities.

Balancing debt and equity is a strategic decision for any company. Debt financing can provide capital for growth without diluting existing shareholders' ownership. However, it also introduces fixed interest payments and the risk of default. Equity funding, on the other hand, does not require fixed payments but dilutes ownership. The optimal balance depends on various factors, including the company's growth prospects, risk tolerance, and market conditions. For Passage Bio, without specific data on their current debt and equity mix, it's challenging to assess their strategy. Monitoring their financial reports for trends in debt and equity levels is essential for understanding their approach.

For further insights into Passage Bio, Inc. (PASG) and its investors, check out: Exploring Passage Bio, Inc. (PASG) Investor Profile: Who’s Buying and Why?

Passage Bio, Inc. (PASG) Liquidity and Solvency

Assessing a company's financial health involves a close look at its liquidity and solvency. For investors in Passage Bio, Inc. (PASG), understanding these metrics is crucial for evaluating the company's ability to meet its short-term obligations and long-term financial stability. You can find more in-depth analysis at Breaking Down Passage Bio, Inc. (PASG) Financial Health: Key Insights for Investors.

Liquidity Ratios:

Liquidity ratios provide insights into a company's ability to cover its short-term liabilities with its current assets. Key liquidity ratios for Passage Bio, Inc. (PASG) include:

• Current Ratio: As of December 31, 2024, the current ratio for PASG was 4.07. This ratio indicates whether a company has enough short-term assets to cover its short-term liabilities. A current ratio above 1 generally suggests good liquidity.
• Quick Ratio: The quick ratio for PASG as of December 31, 2024, was also 4.07. The quick ratio is a stringent measure of liquidity, excluding inventory from current assets to assess a company's ability to meet its immediate liabilities.
• Cash Ratio: The cash ratio for PASG as of December 31, 2024, was 1.94. This ratio measures a company's ability to pay off its current liabilities with only cash and cash equivalents.

Working Capital Trends:

Working capital is the difference between a company's current assets and current liabilities. It is a measure of a company's short-term financial health and its ability to finance its operations. Net current asset value for PASG was $37.66 million as of December 31, 2024.

Cash Flow Statements Overview:

Analyzing cash flow statements provides a clear picture of how a company generates and uses cash. Key components of the cash flow statement include:

• Operating Cash Flow: For the 2024 fiscal year, Passage Bio's operating cash flow was $0.00.
• Free Cash Flow: Passage Bio's free cash flow for Q4 2024 was $0.00. For the 2024 fiscal year, PASG's free cash flow decreased.
• Cash, Cash Equivalents, and Marketable Securities: As of September 30, 2024, Passage Bio had $84.8 million in cash, cash equivalents, and marketable securities, compared to $132.8 million as of September 30, 2023. As of December 31, 2024, the company's cash, cash equivalents, and marketable securities were reported at $76.8 million, a decrease from $114.3 million at the end of 2023.

Liquidity Concerns and Strengths:

While Passage Bio maintains a strong current ratio, indicating a solid ability to cover short-term liabilities, it's important to note a few considerations:

• Cash Runway: The company anticipates that its existing cash, cash equivalents, and marketable securities will be sufficient to fund operations into Q1 2027.
• Operating Expenses: Expenses include research and development (R&D) and general and administrative (G&A) costs. For the year ended December 31, 2024, R&D expenses were $40.2 million, and G&A expenses were $25.0 million.
• Net Loss: The net loss for the year ended December 31, 2024, was $64.8 million, or $1.07 per basic and diluted share, compared to a net loss of $102.1 million for the year ended December 31, 2023.

Solvency Ratios:

Solvency ratios assess a company's ability to meet its long-term obligations. Key solvency ratios for Passage Bio, Inc. (PASG) include:

• Debt-to-Equity Ratio: The debt-to-equity ratio as of the most recent quarter is 0.42.
• Total Debt / Capital (MRQ): 29.37%
• LT Debt / Equity (MRQ): 35.57%
• LT Debt / Total Capital (MRQ): 25.12%
• Total Liabilities / Total Assets (MRQ): The total liabilities to total assets ratio indicates the proportion of a company's assets that are financed by debt.

Passage Bio, Inc. (PASG) Valuation Analysis

Assessing whether Passage Bio, Inc. (PASG) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into the critical metrics that can provide insights into PASG's valuation.

Currently, comprehensive real-time data for traditional valuation metrics such as price-to-earnings (P/E) ratio may be less relevant for companies like Passage Bio, Inc. (PASG), which are in a high-growth phase or are not yet profitable. Therefore, alternative valuation methods and metrics are often considered.

Here's a breakdown of factors to consider:

• Price-to-Book (P/B) Ratio: This ratio compares a company's market capitalization to its book value of equity. It can indicate whether the stock is overvalued if the market price significantly exceeds the book value. Investors should compare PASG's P/B ratio to those of its peers in the biotechnology industry to gauge relative valuation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: EV/EBITDA can provide a more comprehensive valuation measure than P/E, especially for companies with significant debt or those that are not yet profitable. Enterprise Value (EV) accounts for both market capitalization and debt, while EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reflects operational profitability. Again, this ratio is most useful when compared to industry averages.

Analyzing Passage Bio, Inc. (PASG)'s stock price trends over the past year, or longer, is crucial for understanding market sentiment and identifying potential overvaluation or undervaluation. Here's what to consider:

• Stock Price Movement: Significant price appreciation without corresponding fundamental improvements might suggest overvaluation, while a declining stock price despite positive developments could signal undervaluation.
• Volatility: High volatility can make valuation assessment more challenging, as the stock price may not accurately reflect the company's intrinsic value.

Since Passage Bio, Inc. (PASG) is currently not paying dividends, dividend yield and payout ratios are not applicable in this valuation analysis.

Gathering and interpreting analyst consensus on Passage Bio, Inc. (PASG)'s stock valuation is essential. Consider the following:

• Consensus Ratings: Check whether analysts rate the stock as a 'buy,' 'hold,' or 'sell.' A preponderance of 'buy' ratings might indicate undervaluation, while mostly 'sell' ratings could suggest overvaluation.
• Price Targets: Compare the average analyst price target to the current stock price. If the price target is significantly higher than the current price, analysts may believe the stock is undervalued.

Keep in mind that analyst opinions can vary and should be considered alongside other valuation metrics and your own research.

A comprehensive valuation summary for Passage Bio, Inc. (PASG) involves integrating various data points. Here's an example of how the data can be organized:

For a deeper dive into the investors of Passage Bio, Inc. (PASG), explore: Exploring Passage Bio, Inc. (PASG) Investor Profile: Who’s Buying and Why?

Ultimately, determining whether Passage Bio, Inc. (PASG) is overvalued or undervalued requires a holistic view, combining quantitative data with qualitative insights about the company's prospects and the broader market environment. Investors should conduct thorough due diligence and consider their own investment objectives and risk tolerance before making any decisions.

Passage Bio, Inc. (PASG) Risk Factors

Investing in Passage Bio, Inc. (PASG) involves navigating a complex landscape of risks that could significantly impact the company's financial health and future prospects. These risks span internal operational challenges and external market dynamics. Understanding these potential pitfalls is crucial for investors.

Here's an overview of key risks:

• Industry Competition: The biotechnology sector is intensely competitive. Passage Bio faces competition from established pharmaceutical companies and other biotech firms, some with greater financial and research resources. This competition can affect the company’s ability to successfully develop and commercialize its gene therapies.
• Regulatory Changes: The development and commercialization of gene therapies are subject to extensive regulation by health authorities like the FDA in the United States. Changes in regulatory requirements or delays in obtaining necessary approvals can significantly impact Passage Bio's timelines and increase costs.
• Market Conditions: Broader economic downturns or negative sentiment towards the biotechnology industry can affect Passage Bio's ability to raise capital, impact its stock price, and influence partnerships or collaborations.

Operational, financial, and strategic risks are often detailed in Passage Bio's filings with the Securities and Exchange Commission (SEC), particularly in annual reports (10-K) and quarterly reports (10-Q). These documents provide insights into specific challenges identified by the company's management.

Examples of risks disclosed in filings may include:

• Clinical Trial Risks: Gene therapy development is inherently risky, with no guarantee of success in clinical trials. Unexpected adverse events, insufficient efficacy, or delays in enrollment can derail clinical programs.
• Manufacturing Risks: Manufacturing gene therapies is complex and requires specialized facilities and processes. Problems with manufacturing scale-up, quality control, or supply chain disruptions can impact the availability of the company’s products.
• Financial Risks: Passage Bio may require substantial additional funding to advance its pipeline. The inability to secure financing on favorable terms could force the company to delay, reduce, or eliminate its development programs.

Mitigation strategies or plans, if available, might involve:

• Diversifying the pipeline to reduce dependence on a single program.
• Investing in robust manufacturing capabilities and supply chain management.
• Building strong relationships with regulatory agencies to navigate the approval process.
• Maintaining a strong balance sheet to provide financial flexibility.

To gain more insight into the company's mission, vision and core values, review this resource: Mission Statement, Vision, & Core Values of Passage Bio, Inc. (PASG).

Passage Bio, Inc. (PASG) Growth Opportunities

Passage Bio, Inc. (PASG) operates as a clinical-stage genetic medicines company focused on developing transformative therapies for central nervous system disorders. Evaluating the company's growth prospects requires an understanding of its product pipeline, clinical trial progress, and market opportunities.

Key growth drivers for Passage Bio, Inc. (PASG) include:

• Product Innovations: Developing novel AAV-delivered gene therapies targeting unmet medical needs in genetic disorders.
• Market Expansion: Targeting global markets with significant patient populations suffering from rare CNS diseases.
• Strategic Partnerships: Collaborating with academic institutions and other companies to enhance research and development capabilities.

Future revenue growth projections and earnings estimates for Passage Bio, Inc. (PASG) are highly dependent on the successful completion of clinical trials and regulatory approvals. As a clinical-stage company, PASG does not currently generate revenue from product sales. Revenue is expected to commence upon the successful commercialization of its lead product candidates.

Strategic initiatives that may drive future growth include:

• Advancing lead programs, such as PBGM01 for GM1 gangliosidosis, through clinical development.
• Expanding the pipeline with new gene therapy candidates targeting other CNS disorders.
• Securing strategic partnerships to support clinical development and commercialization efforts.

Passage Bio, Inc. (PASG) aims to address the underlying genetic causes of rare, monogenic CNS diseases, differentiating itself through targeted therapies and innovative delivery methods. More details about the company's goals can be found at Mission Statement, Vision, & Core Values of Passage Bio, Inc. (PASG).

The competitive advantages that position Passage Bio, Inc. (PASG) for growth include:

• Proprietary AAV Delivery Platform: Utilizing advanced adeno-associated virus (AAV) vectors for efficient gene delivery to the central nervous system.
• Focus on Rare CNS Disorders: Targeting diseases with limited or no treatment options, providing a significant market opportunity.
• Strong Intellectual Property Portfolio: Protecting its gene therapy candidates and platform technologies with patents and other intellectual property rights.