Form 4: OrbiMed Advisors Sells Passage Bio Shares in Multiple Transactions

OrbiMed Advisors LLC, a significant shareholder of Passage Bio, Inc., has sold a portion of its holdings in a series of transactions between September 16 and September 18, 2024.

Summary

• OrbiMed Advisors LLC, along with related entities, disposed of Passage Bio, Inc. (PASG) shares between September 16 and September 18, 2024.
• On September 16, 2024, 63,100 shares were sold at a weighted average price of $0.74 per share.
• On September 17, 2024, 111,400 shares were sold at a weighted average price of $0.73 per share.
• On September 18, 2024, 25,631 shares were sold at $0.73 per share.
• Following these transactions, OrbiMed's indirect beneficial ownership stands at 7,833,869 shares.
• The shares are held by OrbiMed Private Investments VII, LP (OPI VII), with OrbiMed Capital GP VII LLC (GP VII) as the general partner and OrbiMed Advisors LLC as the managing member of GP VII.
• OrbiMed Advisors and GP VII disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the sale of shares by a major shareholder, which could indicate a lack of confidence or a strategic shift. However, the disclaimer of beneficial ownership limits the impact.

Negatives

• OrbiMed Advisors, a major shareholder, has reduced its stake in Passage Bio, which could be interpreted negatively by the market.

Risks

• Continued selling pressure from major shareholders like OrbiMed could further depress the stock price.
• The disclaimer of beneficial ownership by OrbiMed Advisors and GP VII, except for pecuniary interest, introduces uncertainty about their long-term commitment to Passage Bio.

Industry Context

Sales by major shareholders are common and can be for various reasons, including portfolio rebalancing or profit-taking. The impact on Passage Bio will depend on market perception and the company's fundamentals.

Stakeholder Impact

• Shareholders may react negatively to the sale of shares by a major shareholder, potentially leading to a decrease in stock price.
• The company may need to address investor concerns regarding OrbiMed's reduced stake.

Key Dates