Guggenheim Maintains Buy on Passage Bio, Lowers Price Target to $10
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2025
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Source: Benzinga
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Analyst Views on PASG
Wall Street analysts forecast PASG stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.000
Low
21.00
Averages
40.33
High
68.00
Current: 5.000
Low
21.00
Averages
40.33
High
68.00
About PASG
Passage Bio, Inc. is a clinical-stage genetic medicines company focused on improving the lives of patients with neurodegenerative diseases. Its lead clinical product candidate, PBFT02, seeks to elevate progranulin levels to enhance lysosomal function and slow disease progression across a variety of neurodegenerative diseases. PBFT02 utilizes an adeno-associated virus serotype 1, or AAV1, capsid to deliver a functional granulin gene, encoding progranulin (PGRN), to the brain via intra cisterna magna (ICM) administration. Its development programs consist of PBFT02 for the treatment of FTD-GRN, PBFT02 for the treatment of FTD-C9orf72 and amyotrophic lateral sclerosis, and PBFT02 for the treatment of Alzheimer’s disease. Its clinical product candidates include PBGM01, PBKR03 and PBML04. It also has a preclinical research program that explores multiple potential treatment targets for Huntington's disease.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Biotech Sector Update: FDA and EU Approvals
- FDA Drug Approval: Ionis Pharmaceuticals' TRYNGOLZA received FDA approval as an adjunct therapy for severe hypertriglyceridemia, with Phase 3 studies showing up to a 72% reduction in triglycerides, significantly improving patient health and expected to drive revenue growth.
- EU Therapy Approval: Merck's Keytruda in combination with Padcev received European approval for muscle-invasive bladder cancer, with Phase 3 trial data indicating a 60% improvement in event-free survival, laying the groundwork for market expansion in Europe.
- New Treatment Launch: Gilead Sciences' Trodelvy was approved by the FDA as a first-line treatment for metastatic triple-negative breast cancer, demonstrating a 38% reduction in the risk of disease progression or death, projected to boost sales to $1.4 billion in 2025.
- Strategic Restructuring and Layoffs: ADC Therapeutics announced a 17% workforce reduction, expected to save $10 million annually, aimed at reallocating resources to advance the ZYNLONTA project, although facing $3 million in severance costs in the short term, it is expected to enhance long-term financial health.
See More
Passage Bio and Remix Therapeutics Announce Merger Agreement
- Merger Agreement: Passage Bio and Remix Therapeutics have entered into a definitive merger agreement in an all-stock transaction expected to close in Q4 2026, marking a strategic consolidation in the gene therapy sector.
- Strong Financing: Remix has secured approximately $100 million in oversubscribed private placement financing led by Decheng Capital, which is expected to close immediately prior to the merger, providing essential funding for the combined entity.
- Shareholder Structure: Post-merger, Passage Bio shareholders are expected to own about 7% of the combined company, while Remix shareholders will hold approximately 93%, indicating Remix's dominant position in the merger.
- Future Development Plans: Upon completion of the merger, the company will be renamed Remix Therapeutics, Inc. and plans to trade on Nasdaq, with the combined cash and cash equivalents expected to fund operations through 2028, supporting key clinical milestones.
See More
ARS Pharmaceuticals Faces Insurance Coverage Setback
- Insurance Coverage Challenge: ARS Pharmaceuticals' shares plummeted over 24% in after-hours trading after failing to secure broader commercial insurance coverage for its needle-free treatment Neffy, which investors view as a significant hurdle to sales growth and product adoption.
- Merger Deal Impact: Passage Bio's stock fell over 15% after announcing an all-stock merger with Remix Therapeutics, which will focus on RNA-processing therapies, indicating that the merger news did not provide the expected boost to investor confidence.
- Reverse Stock Split Volatility: Boxlight's shares surged 37% during regular trading following a 1-for-6 reverse stock split, but subsequently dropped over 17% in after-hours trading as investors took profits after the rapid increase, highlighting the stock's sensitivity to trading activity.
- Year-to-Date Performance: Year-to-date, Passage Bio and Boxlight have seen their stocks decline by 50% and 52%, respectively, while ARS Pharmaceuticals has dropped 9%, illustrating the vulnerability of small-cap stocks amid market fluctuations.
See More
Remix and Passage Bio Merger Details Unveiled
- Merger Structure: Remix will become the surviving entity operating as Remix Therapeutics, with Passage Bio shareholders receiving a small stake in the combined company, structured as an all-stock merger, where Passage Bio shareholders are expected to own about 7% and Remix shareholders about 93%.
- Financing and Cash Flow: Remix is simultaneously raising $100 million in an oversubscribed private placement, and the combined company is expected to have sufficient cash to fund operations into 2028, providing a financial cushion for future R&D.
- Focus on R&D Pipeline: Post-merger, Remix will concentrate on its RNA-targeted cancer drug pipeline, with its lead candidate REM-422 currently in Phase 1/2 trials for adenoid cystic carcinoma, indicating potential in oncology treatment.
- Market Reaction and Shareholder Sentiment: Following the merger announcement, Passage Bio's stock fell 16% in after-hours trading, with retail sentiment shifting from neutral to extremely bullish, although some users predict the stock may drop below $1 before the deal closes, highlighting market uncertainty regarding the transaction.
See More
Passage Bio and Remix Therapeutics Announce Merger Agreement
- Merger Agreement: Passage Bio and Remix Therapeutics announced a definitive merger agreement on Wednesday, planning to combine in an all-stock transaction expected to close in Q4 2026, marking a strategic consolidation in the biotech sector.
- New Company Name and Exchange: The combined entity will operate under the name Remix Therapeutics and intends to trade on Nasdaq under the ticker symbol “RMTX,” which will enhance market visibility and financing opportunities for the company.
- Financing Commitments: Remix has secured commitments for an oversubscribed private placement financing expected to yield approximately $100 million in gross proceeds, providing robust financial support for the new company's operations and R&D initiatives.
- Shareholder Structure Changes: Under the merger agreement, upon completion, pre-merger Passage Bio shareholders are expected to own nearly 7% of the combined company, while pre-merger Remix stockholders will hold about 93%, indicating Remix's dominant position in the merger.
See More
Passage Bio Reports Q4 2025 Financial Results
- Financial Performance: Passage Bio reported a GAAP EPS of -$4.09 for Q4 2025, indicating significant challenges in profitability that could undermine investor confidence.
- Cash Flow Status: As of December 31, 2025, the company's cash and cash equivalents stood at $46.3 million, a sharp decline from $76.8 million in the same period of 2024, highlighting increasing liquidity risks that may constrain future investments and operational capabilities.
- Funding Outlook: The company expects its current cash and cash equivalents to fund operations through Q1 2027, a timeline that may impact its strategic plans and market competitiveness.
- Market Attention: With deteriorating financial conditions, investors and analysts will closely monitor Passage Bio's subsequent financing strategies and business adjustments to assess its long-term viability and growth potential.
See More
Biotech Sector Update: FDA and EU Approvals
- FDA Drug Approval: Ionis Pharmaceuticals' TRYNGOLZA received FDA approval as an adjunct therapy for severe hypertriglyceridemia, with Phase 3 studies showing up to a 72% reduction in triglycerides, significantly improving patient health and expected to drive revenue growth.
- EU Therapy Approval: Merck's Keytruda in combination with Padcev received European approval for muscle-invasive bladder cancer, with Phase 3 trial data indicating a 60% improvement in event-free survival, laying the groundwork for market expansion in Europe.
- New Treatment Launch: Gilead Sciences' Trodelvy was approved by the FDA as a first-line treatment for metastatic triple-negative breast cancer, demonstrating a 38% reduction in the risk of disease progression or death, projected to boost sales to $1.4 billion in 2025.
- Strategic Restructuring and Layoffs: ADC Therapeutics announced a 17% workforce reduction, expected to save $10 million annually, aimed at reallocating resources to advance the ZYNLONTA project, although facing $3 million in severance costs in the short term, it is expected to enhance long-term financial health.
See More
Passage Bio and Remix Therapeutics Announce Merger Agreement
- Merger Agreement: Passage Bio and Remix Therapeutics have entered into a definitive merger agreement in an all-stock transaction expected to close in Q4 2026, marking a strategic consolidation in the gene therapy sector.
- Strong Financing: Remix has secured approximately $100 million in oversubscribed private placement financing led by Decheng Capital, which is expected to close immediately prior to the merger, providing essential funding for the combined entity.
- Shareholder Structure: Post-merger, Passage Bio shareholders are expected to own about 7% of the combined company, while Remix shareholders will hold approximately 93%, indicating Remix's dominant position in the merger.
- Future Development Plans: Upon completion of the merger, the company will be renamed Remix Therapeutics, Inc. and plans to trade on Nasdaq, with the combined cash and cash equivalents expected to fund operations through 2028, supporting key clinical milestones.
See More
ARS Pharmaceuticals Faces Insurance Coverage Setback
- Insurance Coverage Challenge: ARS Pharmaceuticals' shares plummeted over 24% in after-hours trading after failing to secure broader commercial insurance coverage for its needle-free treatment Neffy, which investors view as a significant hurdle to sales growth and product adoption.
- Merger Deal Impact: Passage Bio's stock fell over 15% after announcing an all-stock merger with Remix Therapeutics, which will focus on RNA-processing therapies, indicating that the merger news did not provide the expected boost to investor confidence.
- Reverse Stock Split Volatility: Boxlight's shares surged 37% during regular trading following a 1-for-6 reverse stock split, but subsequently dropped over 17% in after-hours trading as investors took profits after the rapid increase, highlighting the stock's sensitivity to trading activity.
- Year-to-Date Performance: Year-to-date, Passage Bio and Boxlight have seen their stocks decline by 50% and 52%, respectively, while ARS Pharmaceuticals has dropped 9%, illustrating the vulnerability of small-cap stocks amid market fluctuations.
See More
Remix and Passage Bio Merger Details Unveiled
- Merger Structure: Remix will become the surviving entity operating as Remix Therapeutics, with Passage Bio shareholders receiving a small stake in the combined company, structured as an all-stock merger, where Passage Bio shareholders are expected to own about 7% and Remix shareholders about 93%.
- Financing and Cash Flow: Remix is simultaneously raising $100 million in an oversubscribed private placement, and the combined company is expected to have sufficient cash to fund operations into 2028, providing a financial cushion for future R&D.
- Focus on R&D Pipeline: Post-merger, Remix will concentrate on its RNA-targeted cancer drug pipeline, with its lead candidate REM-422 currently in Phase 1/2 trials for adenoid cystic carcinoma, indicating potential in oncology treatment.
- Market Reaction and Shareholder Sentiment: Following the merger announcement, Passage Bio's stock fell 16% in after-hours trading, with retail sentiment shifting from neutral to extremely bullish, although some users predict the stock may drop below $1 before the deal closes, highlighting market uncertainty regarding the transaction.
See More
Passage Bio and Remix Therapeutics Announce Merger Agreement
- Merger Agreement: Passage Bio and Remix Therapeutics announced a definitive merger agreement on Wednesday, planning to combine in an all-stock transaction expected to close in Q4 2026, marking a strategic consolidation in the biotech sector.
- New Company Name and Exchange: The combined entity will operate under the name Remix Therapeutics and intends to trade on Nasdaq under the ticker symbol “RMTX,” which will enhance market visibility and financing opportunities for the company.
- Financing Commitments: Remix has secured commitments for an oversubscribed private placement financing expected to yield approximately $100 million in gross proceeds, providing robust financial support for the new company's operations and R&D initiatives.
- Shareholder Structure Changes: Under the merger agreement, upon completion, pre-merger Passage Bio shareholders are expected to own nearly 7% of the combined company, while pre-merger Remix stockholders will hold about 93%, indicating Remix's dominant position in the merger.
See More
Passage Bio Reports Q4 2025 Financial Results
- Financial Performance: Passage Bio reported a GAAP EPS of -$4.09 for Q4 2025, indicating significant challenges in profitability that could undermine investor confidence.
- Cash Flow Status: As of December 31, 2025, the company's cash and cash equivalents stood at $46.3 million, a sharp decline from $76.8 million in the same period of 2024, highlighting increasing liquidity risks that may constrain future investments and operational capabilities.
- Funding Outlook: The company expects its current cash and cash equivalents to fund operations through Q1 2027, a timeline that may impact its strategic plans and market competitiveness.
- Market Attention: With deteriorating financial conditions, investors and analysts will closely monitor Passage Bio's subsequent financing strategies and business adjustments to assess its long-term viability and growth potential.
See More
