Passage Bio has announced to reduce their headcount by 13%. Moreover, they will also cut their funding to save cash and will prioritize their R&D.
Changes in management roles
Passage Bio is a Philadelphia-based gene therapy developer. The company has recently decided to cut down 13% of their workforce. This means that between 15-20 employees will be laid off. This is according to a company spokesperson. This announcement came a week after a board of director, Liam Ratcliffe resigned due to a disagreement with the company. He had his reservations regarding the company’s business plans and operations management. However, he referred to this as his personal decision. Moreover, Eliseo Salinas, Passage’s head of research and development will also retire. Whereas, company’s chief medical officer who joined in July last year is all set to replace him.
Partnering with University of Pennsylvania’s Gene Therapy Program
The sharp downturn of stock market has adversely affected the bio-tech industry. Therefore, a number of drug makers have decided to reduce their spending. They have now decided to reprioritize their research plans. Passage Bio is also opting to follow the same path. Shares of the Philadelphia based company were falling in premarket trading in response to the announcement. However, the company will keep on focusing on advancing its three lead clinical programs for GM1 gangliosidosis, Krabbe disease and frontotemporal dementia. The company is partnering with University of Pennsylvania’s Gene Therapy Program to reprioritize their research and development programs.
Bruce Goldsmith, president and chief executive officer of Passage Bio termed initiation of lay-offs and reduction in operating costs as a tough decision. However, he believes that that company’s alignment with University of Pennsylvania’s Gene Therapy Program will increase their ability to execute their trials. “We are committed to our mission of developing transformative therapies for people with devastating CNS disorders,” Bruce Goldsmith added to his statement.
The cuts are likely to provide the company with enough cash runway to extend into the fourth quarter of 2024. Moreover, they will provide the company with the financial flexibility to achieve their upcoming milestones.
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