Earlier this week, Passage Bio announced an organizational redesign to better align its resources with a previously announced focused R&D strategy to extend its cash runway.
As part of the redesign, the company plans to cut operating expenses through cash management initiatives and a workforce reduction of about 26%, mainly in its CMC group. These steps aim to fund the company's operating expenses and capital needs until the fourth quarter of 2025, supporting ongoing clinical programs and reaching various milestones.
Passage will also be letting go of its CFO, Simona King, and its CTO, Alex Fotopoulos, effective July 28, 2023. Both King and Fotopoulos have agreed to separation arrangements consistent with their employment agreements for termination without "cause.”
Kathleen Borthwick, the current VP of finance, will become the senior vice president and interim CFO starting July 28, 2023.
Passage has now joined the likes of other biotechs like Avrobio and Amarin, which have announced restructuring and employee reductions.
