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Jun 30, 2024
Precigen Q2 2024 Earnings Report
Precigen's financial performance declined due to reduced revenues and increased expenses, but the company strategically focused on PRGN-2012 and secured funding.
Key Takeaways
Precigen reported a decrease in total revenues and an increase in net loss for the second quarter of 2024 compared to the prior year period. The company strategically reprioritized its pipeline to focus on PRGN-2012 and strengthened its cash position through a public offering.
Total revenues decreased by $1.1 million, or 59%, compared to the three months ended June 30, 2023, due to reductions in product and service revenues at Exemplar.
Net loss was $58.8 million, or $(0.23) per basic and diluted share, compared to a net loss of $20.3 million in the same period last year.
Research and development expenses increased by $3.8 million, or 32%, compared to the three months ended June 30, 2023, driven by costs related to PRGN-2012.
The company recorded $34.5 million of impairment charges related to goodwill and other noncurrent assets related to the suspension of ActoBio’s operations.
Forward Guidance
Precigen expects the recent reprioritization and public offering to fund operations into early 2025, focusing on the advancement of PRGN-2012 and exploring non-dilutive financing opportunities.
Positive Outlook
- Focus on advancement of PRGN-2012.
- Rolling BLA submission anticipated in the second half of 2024.
- Initiated enrollment in the confirmatory clinical trial of PRGN-2012.
- Exploring potential non-dilutive financing opportunities.
- Optimized the company to rapidly prepare for submission of a rolling biologics license application under an accelerated approval pathway.
Challenges Ahead
- Uncertainty regarding the timing and outcome of clinical trials.
- Dependence on successful commercialization of PRGN-2012.
- Potential delays in regulatory submissions and approvals.
- Risk of not securing additional funding when needed.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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