Passage Bio, Inc. reported its financial results for the third quarter of 2025, revealing a net loss of $7.7 million, a significant improvement compared to a net loss of $19.3 million in the same period last year. For the nine months ending September 30, 2025, the company recorded a net loss of $32.5 million, down from $52.0 million in the prior year. The reduction in losses is attributed to decreased operating expenses, particularly in research and development, which fell to $4.3 million from $8.7 million year-over-year, and general and administrative expenses, which decreased to $4.3 million from $7.3 million.
The company’s total assets decreased to $74.2 million as of September 30, 2025, down from $102.4 million at the end of 2024. This decline was primarily due to the absence of marketable securities, as all such securities matured and were converted into cash equivalents. Cash and cash equivalents increased to $52.8 million from $37.6 million at the end of 2024, providing a runway expected to last into the first quarter of 2027. The accumulated deficit as of September 30, 2025, stood at $691.8 million, reflecting the ongoing challenges of funding operations in the biotechnology sector.
Operationally, Passage Bio has undergone significant restructuring, including a workforce reduction of approximately 55% announced in January 2025, aimed at extending its cash runway. The company has also ceased lab operations in Hopewell, New Jersey, leading to an impairment charge of $2.6 million related to long-lived assets. The restructuring has allowed the company to focus on its lead clinical product candidate, PBFT02, which is in development for frontotemporal dementia caused by progranulin deficiency. The company is also exploring PBFT02 for additional neurodegenerative diseases, including FTD-C9orf72 and ALS.
In terms of strategic developments, Passage Bio has entered into several agreements, including sublicenses with Gemma Biotherapeutics for the treatment of GM1 gangliosidosis, Krabbe disease, and metachromatic leukodystrophy. These agreements are expected to generate initial payments totaling $15 million, contingent on certain milestones. The company is also pursuing additional funding through equity offerings and collaborations, as it anticipates needing substantial capital to support ongoing research and development efforts.
Looking ahead, Passage Bio aims to continue advancing its clinical programs while managing its cash resources prudently. The company plans to report updated interim safety and biomarker data from its ongoing trials in the first half of 2026 and seeks regulatory feedback on trial designs for its product candidates. The focus remains on achieving significant milestones that could lead to commercialization, although the path to profitability remains uncertain given the inherent risks in the biotechnology industry.
About Passage BIO, Inc.
Passage Bio, Inc. is a clinical-stage genetic medicines company focused on developing one-time gene therapies for neurodegenerative diseases. Its lead candidate, PBFT02, targets conditions like frontotemporal dementia by delivering functional genes to the central nervous system. The company leverages AAV vectors, innovative delivery routes, and collaborations to address unmet medical needs in CNS disorders with a focus on safety, efficacy, and regulatory success.
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