Passage Bio Reports Improved Financial Results with Reduced Losses in Q2 2025

Passage Bio, Inc. reported its financial results for the second quarter of 2025, revealing a net loss of $9.4 million, a significant improvement compared to a net loss of $16.0 million in the same period last year. For the six months ending June 30, 2025, the company recorded a net loss of $24.8 million, down from $32.7 million in the prior year. The reduction in losses is attributed to decreased operating expenses, particularly in research and development, which fell to $5.8 million from $10.4 million year-over-year, and general and administrative expenses, which decreased to $4.5 million from $6.5 million.

The company’s total assets decreased to $79.2 million as of June 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 had matured and were reinvested into cash equivalents. Cash and cash equivalents increased to $57.6 million from $37.6 million, reflecting a net increase of $20.1 million during the first half of 2025. The company’s accumulated deficit also grew to $684.0 million, up from $659.2 million at the end of 2024.

Strategically, Passage Bio has undergone significant organizational changes, including a workforce reduction of approximately 55% announced in January 2025, aimed at extending its cash runway and reducing operating expenses. 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. In terms of product development, Passage Bio is advancing its lead candidate, PBFT02, for the treatment of frontotemporal dementia caused by progranulin deficiency, with ongoing clinical trials and positive regulatory feedback.

Looking ahead, Passage Bio anticipates continued operational challenges as it seeks additional funding to support its clinical programs. The company plans to finance its operations through equity offerings, debt financing, and potential collaborations. As of June 30, 2025, the company had $15.8 million remaining under its at-the-market equity offering program, which it may utilize to raise additional capital. The management expects that existing cash reserves will be sufficient to fund operations into the first quarter of 2027, but acknowledges the need for substantial additional capital to support ongoing research and development efforts.