Passage BIO, Inc.

Analysis for Ticker: PASG

Passage Bio Inc is a medical company that develops gene therapies for rare diseases of the central nervous system by using tiny viral envelopes to deliver functional genes directly into the brain. The science looks impressive, but the accounting reveals a terminal sequence. They have successfully incinerated 704,8$ million in investor capital without ever generating a single dollar from a commercial product. It is a system where money from the public market is pumped into a dying host, only to be drained by a network of executives, landlords, and academic partners. To a child, it would look like a group of people building a high-tech car that never moves, while they keep charging the passengers for tickets and using the money to pay for their own expensive lunches. The mechanism for this transfer of wealth was set long ago. In 03/2024, the company used a special tool called an at-the-market facility to quietly sell off shares and raise 8,7$ million from unsuspecting investors. On 15/01/2025, while the business was already bleeding, the chief executive officer William Chou was handed 20.000 shares for 0$, and the chief financial officer Kathleen Borthwick received 10.000 shares for 0$. In simple terms, they printed new pieces of the company and gave them to themselves for free, which makes every piece already owned by the public worth less. In 01/2025, they fired 55% of their workers and walked away from a 62.000 square foot laboratory in New Jersey, losing 6,1$ million just on the equipment they left behind.