Underwriters have exercised their over-allotment option in full, increasing the University of Pennsylvania-linked genetic medicine developer’s proceeds by $32.4m.

Passage Bio, a US-based genetic medicines developer commercialising University of Pennsylvania research, has increased its initial public offering to more than $248m after underwriters exercised their over-allotment option in full. Underwriters purchased 1.8 million additional shares at the initial public offering price of $18, thereby injecting $32.4m into the company. The company had raised an initial $216m in proceeds after issuing 12 million shares priced at $18 at the end of last month, an increase on the $125m it had originally hoped to raise. It listed on the Nasdaq Select Global Market under the symbol PASG. Founded in 2017, Passage Bio is working on genetic therapies for rare, life-threatening disorders affecting the central nervous system. It has a research, collaboration and licensing agreement with University of Pennsylvania’s Orphan Disease Center and Gene Therapy Program. The money will go towards the development of three assets – aimed at frontotemporal dementia, lysosomal storage condition Krabbe disease and genetically inherited brain and spinal cord disorder GM1 gangliosidosis – through planned phase 1/2 trials. Passage Bio will also look to advance its pipeline and select additional drug candidates. The company collected a total of $226m in funding ahead of the offering. Access Biotechnology and Lilly Asia Ventures, respective units of conglomerate Access Industries and pharmaceutical firm Eli Lilly, backed a $110m series B round in September 2019. OrbiMed, New Leaf Venture Partners, Vivo Capital, Frazier Healthcare Partners, Versant Ventures, Highline Capital Management, Boxer Capital, Logos Capital and Sphera Funds Management also contributed to the series B round. OrbiMed had already led a $116m series A round in February 2019, with contributions from Lilly Asia Ventures, Vivo, Frazier, Versant and New Leaf. OrbiMed was Passge Bio’s largest shareholder ahead of the offering, with a 19.6% stake, followed by Versant (14.8%), Frazier (13.9%), Lilly Asia Ventures (7.6%), New Leaf and Vivo (7% each), co-founder James Wilson (6.9%) and Access Industries (6.5%). JP Morgan Securities, Goldman Sachs and Cowen and Company served as joint book-running managers for the offering, while Chardan acted as lead manager.

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Thierry Heles

Thierry Heles is the editor of Global University Venturing, host of the Beyond the Breakthrough interview podcast and responsible for the monthly GUV Gazette (sign up here for free).