Passage Bio Reports Decreased Net Loss and Strategic Merger Plans Amid Financial Challenges

Passage Bio, Inc. reported a net loss of $7.8 million for the three months ended June 30, 2026, a decrease from a loss of $9.4 million in the same period of the previous year. For the six months ended June 30, 2026, the company recorded a net loss of $15.4 million, down from $24.8 million in the prior year. The reduction in losses is attributed to a significant decrease in research and development expenses, which fell to $3.3 million from $5.8 million year-over-year, primarily due to reduced clinical operations and facility costs following the termination of leases. General and administrative expenses increased to $6.9 million from $4.5 million, largely driven by professional fees associated with the company's ongoing merger activities.

In terms of financial position, Passage Bio's total assets decreased to $25.2 million as of June 30, 2026, down from $62.3 million at the end of 2025. The decline in assets was primarily due to a reduction in cash and cash equivalents, which fell to $24.2 million from $46.3 million. The company’s accumulated deficit also increased to $720.1 million, reflecting ongoing operational losses. Current liabilities decreased to $20.7 million from $23.1 million, indicating a reduction in obligations as the company winds down its gene therapy programs.

Strategically, Passage Bio has entered into a merger agreement with Remix Therapeutics, expected to close in the fourth quarter of 2026. This merger is part of a broader restructuring plan that includes a significant workforce reduction of approximately 75% to decrease operating expenses. The company has also terminated its development services and clinical supply agreements with Catalent and its collaboration agreement with Gemma Biotherapeutics, marking a decisive shift away from its previous gene therapy focus.

Operationally, the company has seen a substantial reduction in its workforce and has ceased its gene therapy programs, including the winding down of its lead product candidate, PBFT02. The company’s headcount has decreased significantly, impacting its operational capacity. As of June 30, 2026, Passage Bio had no ongoing sublease arrangements and has been relieved of all operating lease obligations, which is expected to further reduce future liabilities.

Looking ahead, Passage Bio faces substantial uncertainty regarding its ability to continue as a going concern. The company has indicated that it will require additional funding to meet operational needs and capital requirements, particularly if the merger with Remix does not proceed as planned. The company has limited capacity to raise funds through its existing at-the-market equity offering, with only $15.8 million available as of the end of June 2026. The successful completion of the merger and associated financing will be critical for the company’s future operations and financial stability.