Transaction Overview
On June 26, 2025, Orbimed Advisors LLC executed a significant transaction involving Passage Bio Inc (NASDAQ: PASG). The firm reduced its holdings by 583,657 shares, bringing its total position in the company to 6,066,343 shares. This adjustment represents a strategic move, reducing the firm's stake in Passage Bio to 0.05% of its portfolio. The transaction was executed at a price of $0.34 per share, reflecting Orbimed's ongoing portfolio management strategy.
About Orbimed Advisors LLC
Orbimed Advisors LLC is a renowned investment firm specializing in the healthcare sector. Established in 1989, the firm has grown significantly, managing approximately $15 billion in assets across five discretionary accounts. Orbimed's investment philosophy focuses on a broad spectrum of healthcare companies, from venture capital start-ups to large multinationals. The firm has expanded its global presence with offices in Mumbai, Shanghai, and Israel, and has launched various funds, including healthcare royalties and credit opportunities. Orbimed's top holdings include Sinovac Biotech Ltd (SVA, Financial), Boston Scientific Corp (BSX, Financial), and Eli Lilly and Co (LLY, Financial).
Details of the Trade
The recent reduction in Passage Bio Inc shares marks a notable shift in Orbimed's investment strategy. The firm now holds 6,066,343 shares, accounting for 9.76% of its total holdings in the traded stock. This move could indicate a reassessment of Passage Bio's potential within Orbimed's broader portfolio. Despite the reduction, the firm's continued investment in Passage Bio suggests a measured approach to managing its exposure to the biotechnology sector.
Passage Bio Inc: Company Overview
Passage Bio Inc is a genetic medicines company focused on developing therapies for rare, monogenic central nervous system (CNS) disorders. The company's pipeline includes treatments for GM1 Gangliosidosis, Frontotemporal dementia, and Krabbe Disease. With a market capitalization of $24.877 million, Passage Bio operates in a single reportable segment, aiming to address critical neurodegenerative disease pathologies. However, the company's financial metrics indicate challenges, with a GF Score of 32/100, suggesting poor future performance potential.
Financial Metrics and Performance
Passage Bio's financial health presents a mixed picture. The company currently operates at a loss, as indicated by a PE percentage of 0.00. Its Financial Strength is moderate, with a Balance Sheet Rank of 7/10, but its Profitability Rank is low at 1/10. The company's Piotroski F-Score is 1, and its Altman Z score is 0.00, indicating potential financial distress. Despite these challenges, Passage Bio has seen a 15.88% gain in stock price since the transaction.
Market Performance and Valuation
Passage Bio's stock has experienced significant volatility since its IPO on February 28, 2020. The stock has declined by 98.23% since its initial offering, reflecting the challenges faced by the company in achieving sustainable growth. Year-to-date, the stock has decreased by 52.53%. Despite recent gains, the company's Momentum Rank is low at 2/10, indicating limited positive momentum in the market.
Implications for Value Investors
Orbimed's strategic reduction in Passage Bio Inc shares offers valuable insights for value investors. The firm's decision to decrease its stake may reflect concerns about the company's long-term prospects, given its current financial challenges and market performance. However, the continued investment suggests potential opportunities for those willing to navigate the risks associated with investing in a company focused on rare CNS disorders. Investors should carefully consider Passage Bio's financial metrics and market position when evaluating its potential as a value investment.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
