Passage Bio said on Wednesday that it will merge with privately held Remix Therapeutics.
- Under the deal, Remix will become the surviving company and operate as Remix Therapeutics, with Passage Bio shareholders receiving a small stake in the combined entity.
- The transaction is structured as an all-stock merger.
- Retail traders noted the lack of detail in the merger announcement.
Shares of Passage Bio (PASG) fell 16% after-hours on Wednesday after the company said that it has entered into a merger agreement with privately-held Remix Therapeutics.
Under the deal, Remix will become the surviving company and operate as Remix Therapeutics, with Passage Bio shareholders receiving a small stake in the combined entity.
Deal Terms
The transaction is structured as an all-stock merger. According to the companies’ joint announcement, pre-merger Passage Bio shareholders are expected to own around 7% of the combined company, while Remix stockholders, including participants in a new financing, will own about 93%. Passage Bio shareholders will also receive contingent value rights tied to potential future proceeds from its out-licensed gene therapy assets, the company said.
Remix is simultaneously raising $100 million in an oversubscribed private placement led by Decheng Capital. The combined company is expected to have sufficient cash to fund operations into 2028.
Focus On Remix’s RNA-Targeted Cancer Pipeline
The merger shifts focus to Remix’s pipeline of small-molecule drugs designed to modulate RNA processing. Its lead candidate, REM-422, is an oral therapy targeting the MYB protein and is currently in Phase 1/2 trials for adenoid cystic carcinoma and an early-stage study for acute myeloid leukemia.
Remix will continue to advance its REMaster platform for developing RNA-modulating medicines in oncology and other areas.
Leadership And Timeline
The combined company will trade on Nasdaq under the ticker RMTX and will be led by Remix’s current CEO, Peter Smith.
The merger is expected to close in the fourth quarter of 2026, subject to shareholder approvals and other customary conditions.
How Did PASG Retail Traders React?
On Stocktwits, retail sentiment around PASG stock jumped from neutral to extremely bullish territory over the past 24 hours, while message volume rose from normal to extremely high levels.
A Stocktwits user noted that the announcement has not detailed the value of the contingent value rights or detailed which programs in particular will be outlicensed.
Another user opined that the stock will plummet to under a dollar before the deal closing. “looks like shareholders dont like this deal,” they said.
PASG stock has fallen by about 50% year-to-date.
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