Form 4: OrbiMed Advisors LLC Reduces Stake in Passage Bio, Inc. Through Multiple Sales

OrbiMed Advisors LLC, a significant shareholder in Passage Bio, Inc., has sold a portion of its holdings over three days in early January 2025.

Summary

• OrbiMed Advisors LLC, along with OrbiMed Capital GP VII LLC, has reported the sale of Passage Bio, Inc. common stock.
• The sales occurred over three consecutive days, from January 6th to January 8th, 2025.
• On January 6th, 19,481 shares were sold at a weighted average price of $0.77 per share.
• On January 7th, 52,536 shares were sold at a weighted average price of $0.71 per share.
• On January 8th, 75,007 shares were sold at a weighted average price of $0.68 per share.
• Following these transactions, OrbiMed's beneficial ownership decreased from 7,385,388 to 7,257,845 shares.
• The shares are held indirectly through OrbiMed Private Investments VII, LP, with OrbiMed Capital GP VII LLC as the general partner and OrbiMed Advisors LLC as the managing member.

Sentiment

Score: 3

Explanation: The document indicates a significant shareholder is reducing their position, which is generally a negative signal for the stock. The decreasing weighted average sale price over the three days also suggests potential downward pressure.

Negatives

• OrbiMed Advisors LLC, a significant shareholder, has reduced its stake in Passage Bio, Inc., which could be perceived negatively by the market.

Risks

• Continued selling pressure from a major shareholder like OrbiMed could further depress the stock price.
• The weighted average sale prices decreased over the three days, indicating potential downward pressure on the stock.

Management Comments

• Carl L. Gordon, a member of OrbiMed Advisors LLC and OrbiMed Capital GP VII LLC, signed the report on behalf of both entities.
• OrbiMed Advisors and GP VII disclaim beneficial ownership of the securities reported, except to the extent of their pecuniary interest.

Industry Context

This transaction is a routine disclosure of share sales by a major institutional investor. Such sales are common and can be driven by various factors, including portfolio rebalancing or changes in investment strategy.

Comparison to Industry Standards

• Institutional investors like OrbiMed frequently adjust their holdings in biotech companies based on their investment strategies and market conditions.
• Similar transactions are regularly reported by other investment firms in the biotech sector, such as RA Capital Management or Baker Bros. Advisors, when they adjust their positions in their portfolio companies.
• The reported sales are within the typical range of trading activity for institutional investors.

Stakeholder Impact

• The share sales by OrbiMed could negatively impact the share price, affecting current shareholders.
• The reduced stake might raise concerns among other investors about OrbiMed's confidence in Passage Bio's future prospects.

Key Dates

Keywords

OrbiMed Advisors, Passage Bio, Share Sale, Beneficial Ownership, SEC Form 4, Stock Transaction