Passage Bio (NASDAQ:PASG) Announces Restructuring Plan and Financial Update

Passage Bio, Inc., disclosed in an 8-K filing on January 8, 2025, that it has initiated a restructuring plan aimed at ceasing lab operations at its leased laboratory space in Hopewell, New Jersey, spanning about 62,000 square feet. The Board of Directors of Passage Bio approved this plan to align its workforce with strategic research and development needs and reduce operating costs. As part of this plan, the company expects to reduce its workforce by approximately 55%, offering impacted employees severance benefits contingent upon their acceptance of a severance agreement.

This restructuring plan is anticipated to decrease Passage Bio’s annual operating costs by an estimated $9.0 million to $11.0 million. Additionally, the company forecasts incurring around $2.0 million in aggregate severance and exit costs primarily in the first quarter of 2025. The precise financial impact is subject to various assumptions, and unexpected costs might arise as a consequence of the restructuring plan’s implementation.

In connection with the Restructuring Plan, Passage Bio is exploring opportunities to sublease space at the Laboratory Lease to offset financial obligations and sell laboratory equipment. Consequently, the company expects to recognize impairment expenses of approximately $1.0 million to $3.0 million for laboratory equipment by the end of the first quarter of 2025.

The restructuring activities undertaken by Passage Bio are not expected to impact the company’s cash runway significantly, with existing cash, cash equivalents, and marketable securities projected to sustain operating expenses and capital expenditures until the first quarter of 2027.

Furthermore, on January 10, 2025, Passage Bio issued a press release announcing updates on its PBFT02 program, which includes interim data from the Phase 1/2 upliFT-D clinical trial and the successful completion of a suspension-based manufacturing process for PBFT02. The company is focused on evaluating the effectiveness of PBFT02 for frontotemporal dementia treatment and anticipates reporting data milestones throughout 2025 and into 2026.

Passage Bio’s strategic realignment aimed at cost reduction and operational efficiency underscores its commitment to advancing its therapeutic programs and achieving key milestones in the neurodegenerative disease space.

This information was originally disclosed in an 8-K filing by Passage Bio with the Securities and Exchange Commission (SEC) on January 8, 2025. The company’s press release from January 10, 2025, contains additional updates on the PBFT02 program and the latest business developments.

For further details, stakeholders and interested parties can refer to the official filings and press releases available on the company’s website or through the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Passage Bio’s 8K filing here.

About Passage Bio

Passage Bio, Inc, a genetic medicines company, develops gene therapies for central nervous system diseases. It develops PBGM01, a functional GLB1 gene encoding ß-galactosidase for infantile GM1; PBFT02, a functional granulin (GRN) and gene encoding progranulin (PGRN) for the treatment of FTD caused by progranulin deficiency; and PBKR03, a functional GALC gene encoding the hydrolytic enzyme galactosylceramidase for infantile Krabbe disease.