Company Overview
Passage Bio, Inc. operates as a genetic medicines company dedicated to developing gene therapies specifically for central nervous system diseases. The company functions within the healthcare sector and the biotechnology industry, positioning itself as an innovator in specialized medical treatments rather than broad-market pharmaceuticals. Passage Bio, Inc. currently maintains a market capitalization of $20.47M and employs a workforce of 24 individuals. The combination of a market cap under $25 million and a lack of reported annual revenue indicates that the company is in an early-stage development phase where capital allocation is focused on research and product formulation rather than commercial scale. This small scale suggests the entity is a micro-cap biotechnology firm that is still navigating the rigorous regulatory and scientific hurdles required to bring its therapeutic candidates to market.
Financial Health
The company reports no revenue for the trailing twelve months, while the net income stands at a loss of $-45,522,000 and the EBITDA is negative at $-42,423,000. The gap between the reported zero revenue and the substantial net loss reveals a cost structure dominated by high research and development expenses rather than cost of goods sold, which is typical for pre-commercial biotechnology entities. Free cash flow is reported at $-18,799,376, indicating that the company is burning cash rapidly to fund its operations and scientific trials. This negative cash flow implies a lack of financial flexibility in the short term, requiring the company to rely on external capital sources or existing reserves to sustain its burn rate. All three margins—gross margin, operating margin, and profit margin—are listed at 0.0%, reflecting the fact that the company has not yet generated commercial sales to calculate profitability ratios. The total cash balance of $46.30M is compared against total debt of $24.01M, resulting in a debt-to-equity ratio of 128.02. Despite holding more cash than debt, the elevated debt-to-equity ratio suggests a leveraged balance sheet relative to shareholder equity, though the absolute dollar amounts of cash provide a buffer against immediate solvency issues. The current ratio is 2.07, which indicates that the company possesses 2.07 times more current assets than current liabilities, pointing to a healthy short-term liquidity position that should allow it to meet its short-term obligations. Return on equity is -113.8% and return on assets is -32.8%, metrics that reveal management has not yet achieved profitability and is currently destroying shareholder value rather than generating returns on the capital invested.
Valuation Assessment
The trailing P/E ratio is N/A due to the absence of net income, while the forward P/E is -1.19, a negative figure that implies expected earnings remain negative in the near future and does not provide a standard multiple for valuation. The price-to-book ratio is 1.08, suggesting the market values the company slightly above its book value, which is common for biotechnology firms where intangible assets like intellectual property are significant but not fully captured on the balance sheet. The price-to-sales ratio is N/A because there is no revenue data, and the EV/EBITDA stands at 0.04, a metric that is difficult to interpret in isolation for a company with negative earnings but indicates a very low enterprise value relative to its adjusted earnings. The 52-week high is $20.00 and the 52-week low is $5.12, meaning the current trading price sits within a wide volatility range that reflects the uncertainty inherent in developing gene therapy assets. The beta value is 1.77, which explains that the stock's price volatility is significantly higher than the broader market, moving roughly 77% more aggressively than the S&P 500 during periods of market fluctuation.
Growth & Income
Revenue growth year-over-year is N/A and earnings growth year-over-year is N/A, as the company has not yet established a track record of commercial sales to measure growth trajectories. Since the company is not a dividend payer, the dividend yield is N/A and the payout ratio is 0.0%, indicating that the company reinvests all available earnings and cash reserves directly into research, development, and clinical trials rather than distributing income to shareholders. The overall growth and income profile for Passage Bio, Inc. is characterized by a total absence of current commercial performance and cash generation, with all financial resources directed toward advancing its pipeline of gene therapies for central nervous system diseases. This profile is typical for early-stage biotechnology companies that prioritize scientific advancement over immediate financial returns or shareholder distributions.